But Telstra’s extraordinary decision to personally sue the Minister over her part in the Federal Government decision to award to $958 million contract to a Telstra competitor has proved yet again that things can always get worse in this relationship.
Telstra last week marched into the Federal Court to sue the Government – and Senator Coonan – over the process used to award the billion contract to OPEL, the rural-focused telco joint venture between Optus and Elders.
Specifically, Telstra said it had been disadvantaged by the government decision to raise the level funding from its original $600 million to $958 million.
Senator Coonan has been “unsurprised” and unimpressed, and reacted as you might expect – on the front foot, with a stinging attack on Telstra management, its corporate culture, and the quality of its services.
“(It) doesn’t surprise me to learn via media release today, that Telstra has taken sour grapes to a whole new level and has initiated Federal Court proceedings,” Senator Coonan said in a written statement.
“It’s always been the Australian way to respect the umpire’s decision, particularly if you have been beaten fair and square by a superior bid,” she said.
“Quite frankly, I would be much happier if Telstra put this sort of effort into rectifying the rising level of consumer concerns with the rollout of their new Next G network.
“I have just spent the last six weeks on the road across Australia and based on the level of frustration I heard from people regarding their mobile coverage, this is the issue that needs Telstra’s urgent and genuine attention.”
The OPEL joint-venture would deliver one of the world’s most comprehensive rural and regional broadband networks for a country of our size and population spread. Broadband speeds will be 20 to 40 times faster than those used today and delivered in the country at city comparable prices, she said.
“The fact that no-one can hide from is that Telstra put in a bid for funding; it was independently assessed and then soundly beaten by a superior bid from OPEL,” Senator Coonan said.
“According to Telstra’s own admission, its bid would have covered only 250,000 underserved premises, less than half that covered by OPEL,” she said.
“This is just a case of an ordinary bid being blown out of the water by an outstanding bid –and the loser not happy with the umpire’s decision.
“I completely reject the assertions made by Telstra. The process was fair and consistent with both the guidelines, assessment plan and probity requirements.”
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