A significant reduction in the current price of regional broadband transmission capacity is a key feature of the OPEL high-speed wholesale broadband access network that is set to dramatically improve rural and regional communications in Australia.

One week after the Prime Minister announced OPEL Networks Pty Ltd (OPEL) as the successful applicant under the Federal Government's Broadband Connect Infrastructure Program, OPEL has commenced the process of industry consultation with telecommunications carriers, service providers and internet service providers.

On Tuesday 26 June, speaking on behalf of OPEL, Jason Horley, General Manager of Elders Telecommunications, told a meeting of Paul Budde's Wholesale Industry Group that a cornerstone strategy for OPEL is to establish a wholesale company that will build, manage and promote a wholesale broadband infrastructure network that will enable wholesale providers and retail ISPs to serve the current and future needs of rural and regional consumers and businesses.

Australia's rural and regional ISPs will also be offered highly competitive wholesale broadband access to the new OPEL network.

OPEL has a long-term strategy and its network has been designed to cater for the longer term needs of rural and regional Australians. OPEL will enter into a 10 year agreement with the Commonwealth to provide wholesale services across the network.

"To solve the current broadband problem, OPEL needs to address the core issue of transmission (also known as backhaul)," Mr Horley said.

"The lack of transmission infrastructure in rural and regional areas and the high prices charged by the incumbent have often been identified as factors that have held back broadband deployment, choice and innovation. OPEL will direct significant resources to address this issue and we expect to be able to offer significant reductions in regional transmission prices. The average price reduction across the regional transmission market will be up to 30 percent compared to current price levels. This will be welcomed in the industry given that wholesale transmission represents a key input cost for broadband providers."

Mr Horley also dismissed recent comments suggesting that retailers will impose a $1000 price tag for wireless broadband installations. He dismissed such comments as "simply wrong" and said that OPEL's one-off set-up price would permit retailers to professionally install and activate a service at prices less than $250.

"OPEL's wholesale service will enable rural and regional Australians to access plans at prices comparable to that being paid by metropolitan consumers, which typically average $35 to $60 per month".

"Country people will soon be able to judge for themselves as the OPEL network is rolled out and becomes operational and they can experience broadband speeds up to dozens of times faster than dial-up access."

"We expect monthly access prices for consumers to be comparable to metropolitan prices, with a range of plans being available to suit most budgets and customer requirements, Mr Horley said. While the price of set-up equipment costs are a matter for retail ISPs to determine, they are expected to be less than $250, a price that is likely to fall further for those willing to sign up to longer term plans."

Mr Horley also dismissed suggestions that the wireless component of the new network, based on WiMAX technology, would be compromised by rainy weather.

"WiMAX is the worldwide technology of choice for wireless fixed and portable broadband access, particularly in country areas," he said.

"Computer giant Intel has invested $1 billion in WiMAX. It is operating in 35 countries, in the UK, Europe, North and South America and South-East Asia; it is about to be switched on for 100 million Americans and is in use in London and the Isle of Man (UK). As it is effective on the Isle of Man and in the centre of London, I'm sure it will be able to cope with rain and buildings in Australia's rural and regional towns."

Mr Horley said the OPEL network will provide speeds fast enough to download a music CD, run business, education and health applications, download movies and participate in the internet 'virtual world.

"It will simply make a lot of aspects of work and leisure in the country quicker and easier," he said.

The OPEL network will cover 638,000 square kilometres, extending across all State and Territories. It will provide a broadband network extending from metropolitan fringe black spots, to growing regional and rural areas. It will include thousands of kilometres of new optic fibre rollout, will involve 1361 wireless broadband sites and ADSL2+ installations in 312 exchanges.

Optus will also activate 114 new exchanges with ADSL2+ as part of its existing commitment to provide competitive broadband services. The total number of new exchanges to be activated with ADSL2+ by OPEL and Optus will be 426.

Mr Horley said OPEL combined two respected brands - Elders in rural services and Optus in telecommunications - representing a strong new competitive force for broadband in regional and rural Australia.

Media Contacts
Jason Horley
Phone: (08) 8425 4907

Melissa Favero
Phone: (02) 9342 5030