Optus, the Queensland Government and Leighton Holdings today announced an $85 million telecommunications infrastructure deal, linking Australia from Cairns to Perth.

The Brisbane to Cairns network significantly expands the Optus national fibre backbone, bringing telecommunications competition to many Australian businesses for the first time. The Optus fibre backbone now operates from Perth to Cairns via Adelaide, Melbourne, Canberra, Sydney and Brisbane.

The project is the first time national telecommunications infrastructure has resulted from a partnership between Government, telecommunications carrier and infrastructure provider.

Chris Anderson, Chief Executive of Optus said the cooperation on the Reef Network was a demonstration of Optus's continuing commitment to telecommunications competition in Australia.

"When Optus was born as the national telecommunications challenger in 1992, we made a commitment to Australians to continually and consistently deliver competition."

"We said we'd do it with better service. We said we'd do it with state-of-the-art infrastructure."

"Today's unveiling of the new Brisbane to Cairns network sees us once again delivering on our commitments," Mr Anderson said.

Mr Anderson said Optus has a ten-year anchor-tenant lease for the 2.5 Gbit/s of capacity on the Brisbane to Cairns network - built by Leighton Holdings subsidiary, Reef Networks.

"By working with the Queensland Government and Reef Networks, we were able to ensure the network was built to meet the needs of Optus and our customers, while remaining a cost-efficient exercise for us," Mr Anderson said.

"Of major significance for Optus, by using a leasing arrangement, the new network is an operational expense, not capital," said Mr Anderson.

Along with realising the benefits of competition for Queensland businesses, the expanded network is set to deliver increases in revenue for Optus.

"This extra geographic reach into Queensland will see Optus offer services to businesses at an extra nine points-of-presence, and to an additional 614,000 potential customers."

"We expect the link to generate in excess of $200 million in revenue from corporate customers and the Queensland Government," Mr Anderson said.

"Our networks have got Australia covered. We are the only viable alternative for business customers with offices throughout Australia."

"We are connecting Northern Queensland to the information age, and to the rest of Australia," Mr Anderson said.

"Introducing infrastructure of this magnitude is a significant move, yet we consider this only one more step for Optus in Queensland. Using this network as a springboard, we can access business customers in regional and rural areas via Digital Subscriber Line (DSL) technology and Optus satellite services," Mr Anderson said.

Peter Beattie, Premier of Queensland said the new infrastructure was an important step in creating Queensland's evolution as the 'Smart State'.

"This is another 'Smart State' initiative that ensures the whole of Queensland shares in the technology revolution that is driving the world's economy."

"The short term and long term benefits of this initiative are enormous and extend well beyond the 180 jobs created during construction and the 30 jobs created to operate and maintain the network," Mr Beattie said.

The new fibre link covers 1,820km and passes through several regional centres, including Caloundra, Maroochydore, Maryborough, Bundaberg, Gladstone, Rockhampton, Mackay, Townsville and Cairns.

The network is largely located in the Queensland rail corridor running from Brisbane to Cairns.

For more information:
Stephen Woodhill
Cable & Wireless Optus
Phone: 02 9342 7850
Mobile: 0413 318 455