Telcos ready, set, awaiting go

Telstra might even hand its information to the Department of Communications this week, which would pass it on to all bidders shortly afterwards if it is deemed sufficient. They will then have 12 weeks before tenders close.

About a dozen telcos, including Optus and Pipe Networks in Queensland, have handed over commercially sensitive information at the behest of the Government, but Telstra's data is critical because the company controls the majority of Australia's network infrastructure.

Political pressure has been building on the Communications Minister, Stephen Conroy, to deliver on one of Labor's core election pledges since he ditched a July 25 deadline for tenders.

"At some point Kevin Rudd is going to turn around and say: 'Where is my [broadband network]?"' an industry insider said.

The gun must be fired no later than September to meet Senator Conroy's target of bids by the end of the year. A Government panel will have two months to assess them and make a recommendation to the minister.

Telstra remains the market's odds-on favourite, ahead of the Optus-led consortium Terria (formerly known as G9) and the Canadian telco Axia NetMedia.

Telstra has argued for speedier tendering, but Optus and the Competitive Carriers Coalition - whose members include Macquarie Telecom and Hutchison - advocated a less ambitious timetable.

Telstra submitted network information to the department months ago, but it was deemed insufficient for what bidders needed to form their tenders.

If the latest batch of information from the telcos is again insufficient, Senator Conroy could face the headache of another delay to the tenders.

Secrecy will continue to shroud the process because of a Government gag order, but industry insiders say the process will "certainly hot up" once the starting gun is fired.

The forecast cost of a national broadband network has ranged from $9 billion to $25 billion, but industry insiders say those were "back of the envelope" figures.

Costing involves such variables as how far the fibre-optic cables extend into the bush, pricing points and the commercial returns the Government and winning bidder expect from their investments.

An ABN Amro telecommunications analyst, Ian Martin, said momentum was building for the process and he believed Senator Conroy's timetable, with a closing date for bids at the end of the year, was achievable. He said he doesn't expect the winning tender to be announced until February or March at the earliest.