The group says that inflationary pressures, and the Rudd Government’s commitment to trimming Federal budgets, means the Commonwealth might decide against going ahead with the funding plan.
It says that the Telstra decision to switch on ADSL2+ in 900 exchanges nationwide means that rural and regional telecommunications will be substantially improved regardless of the Opel funding plans.
“We believe that the announcement from Telstra to activate their remaining ADSL2+ ready exchanges as a result of Ministerial assurance and the Government’s requirement to cull more than $10 billion dollars of funding are related,” said IDC telecommunications program manager David Cannon.
“As a result the Opel Pty Ltd funding will potentially be a casualty of larger macro economic inflation management processes,” he said.
“The activation of the ADSL2+ exchanges gives regional and rural communities metro-like broadband services and will counterbalance any negative public sentiment should the Opel funding be withdrawn,” said Cannon.
Opel is a joint-venture between Optus and Elders.
But with Optus already saying will not build its 3G network to cover 96 per cent of the population – instead rolling out only to major metropolitan and regional areas – and Vodafone apparently under pressure to reassess its own 3G plans, IDC says a lack of competition in the bush will mean continued higher prices for regional and rural Australia.
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