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Clash of the 500lb gorillas pt 2

By harvyk1 - 15 December 2008 34

For all who didn’t read pt 1 of the thread see below

It appears that Telstra are potentially going to be making trouble now it’s been excluded from the tender process because surprise surprise, it’s tender response was not up-to scratch.

News have the story.

Why is this important to note in a place like Canberra? Well I expect a good percentage of people working in Canberra would have at some point in time worked on a project which went out to tender. It’s nice to know that the process in place has worked, and that a company can not come in and simply throw it’s weight around and expect to get something.

Maybe us small guys are still in with a chance in this town.

It’ll be interesting times ahead as Telstra no doubt now go to the courts.

Also does anyone know if TransACT has a preference of which other company they will be working with?

What’s Your opinion?

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34 Responses to
Clash of the 500lb gorillas pt 2
harvyk1 4:32 pm 15 Dec 08

poptop, the problem is that Telstra will now probably take the issue to court. They will no doubt put a holt to the NBN until the court has decided if the reasons Telstra was excluded where valid ones. Think GDE, except over all OZ.

Also I believe it was Telstra who contacted the media to say that their bid was rejected, not the gov’t.

tylersmayhem 4:20 pm 15 Dec 08

Either way, I reckon Telstra will have their own high-speed broadband product up and running well before the 5 odd year project timeline draws to a close.

…and how many zeros behind the $ would you like with your happy meal?!

poptop 4:16 pm 15 Dec 08

I think Telstra may try to grandstand on the basis of the sort of response the Australian community gave over the privatisation in the hope of getting popular support; but I think the people who are really concerned over broadband are different from the “mums and dads”.

Surely it is about the young turks who change ISPs like they change their underwear and know that there are players who can deliver as well or better than Telstra?

S4anta 4:08 pm 15 Dec 08

Either way, I reckon Telstra will have their own high-speed broadband product up and running well before the 5 odd year project timeline draws to a close.

Jonathon Reynolds 4:07 pm 15 Dec 08

Under the normal tender process, if you do not meet the mandatory prerequisites, conditions or requirements it is normally deemed a non-compliant tender response and generally excluded from further consideration.

If the Government is strictly observing probity then they would not have made public the reasons for excluding any bidder at this early stage, only after completion of the process (usually after signing of actual contracts) is an opportunity given to the unsuccessful bidders for an debrief regarding their own bid. I do not know of any major tender process where the Government has ever specifically pointed out the deficiencies of individual bids in public fora.

At this stage we can only assume that Telstra is currently applying media “spin” to account for the fact that they knew that their 13 page submission was never going to demonstrate compliance and they are trying to ham it up for publicity and effect. It appears that the stock market can see through this facade and is currently given them a deserved dressing down for their ineptitude.

S4anta 4:05 pm 15 Dec 08

“Also does anyone know if TransACT has a preference of which other company they will be working with?”

To answer this bit, TransACT would have to listed under the subcontractor disclosure clauses that comporise as part of the tender docs, if any. I dare that they would be offering their investment thus far in network infratstructure they have rolled out and others have already referred to, and are bidding for the ACT slice of pie to bring it up to speed.

As for the whole Telstra, if they are silly enough not to comply with the most basic of mandatory compliance components of tender process, then they haven’t a leg to stand on. However, I would be surprised if this didn’t occur. The offer to provide further information when prompted, is technically viable but overall, if your bid doesnt have the info for the eval. committee to di it’s job, well you probably shouldn’t have wasted your time in the first place.

poptop 3:51 pm 15 Dec 08

Harvyk, I agree tender processes are difficult and complex and I’ve only been involved in tiny, simple unimportant ones.

It does seem that Telstra is treating the process contemptuously, but equally the process appears to be responding correctly. I may have misread the concerns, but Telstra taking it’s bat and ball and going to court, doesn’t seem like something I need lose sleep over. Surely the Courts would simply check for appropriate legal behaviour and send Telstra home too?

tylersmayhem 3:34 pm 15 Dec 08

Do we really want a company which couldn’t do the job correctly the first time around have another crack at it?

The same could be said about the Stanhope Government…but that’s another bedtime story ;P

harvyk1 3:21 pm 15 Dec 08

It’s a bad thing because it shows Telstra having complete comtempt over the whole process. The tender process and governments accountability ensures that everyone from the largest players to the smallest all have equal chance to get a foot in the door, from small scale single person projects to multi-billion dollar projects. It also ensures that gov’t work does not simply get handed over to mates.

Writing a tender response is no small feat. I’ve personally been involved in preparing a tender and to see a company simply trying to use it’s weight to circumvent the process really annoys me. To put it in another term, how would you like it if you lost your job because you weren’t friends with the right people?

peterh 3:20 pm 15 Dec 08

The NBN is all well and good, but how will it impact canberrans? not much. we have telstra, we have transact, we have soul, we have optus, etc, etc.

The NBN should be opened up to all carriers who have infrastructure in australia. Then let the consumer choose who they get the internet from.

not the government decide who we will get. Or the successful tenderer.


owned by the government?

sounds kinda familiar.

wait. who owns transact?


poptop 3:15 pm 15 Dec 08

I’m really not getting why I should be concerned about all this “potential” for Telstra to go postal.

The last thread was – Testra didn’t submit a proper bid and will potentially behave badly if not selected. This was somehow was converted into an assumption that the Tender Panel and the Government would cave in.

That didn’t happen – Telstra appears to have been, properly, excluded from the tender process.

So why is this next phase so risky and what, potentially, will Telstra do? Go to court?

Why is that a bad thing?

harvyk1 3:13 pm 15 Dec 08

Dante, I should have read you post a little more carefully. I realised I just re-interated everything you said. – My Bad

harvyk1 3:13 pm 15 Dec 08

I’m kinda hoping we leave Telstra’s monopolised network with the NBN. This may actually be a cleaver way for the government to re-gain control of our infrastructure which was sold off under the Telstra, T2 and T3 floats.

I’m not sure if I want TransACT to build the Canberra section of the NBN. They kinda tried and failed. Whilst the original TransACT system was an excellent idea, which could have easily been expanded, as far as I know they ran out of money and thus TransACT ADSL was born. Basically TransACT went in a re-sold Telstra’s ADSL as it’s own. Do we really want a company which couldn’t do the job correctly the first time around have another crack at it?

tylersmayhem 3:08 pm 15 Dec 08

“And Telstra is the only company with the existing network, technical know-how, world-leading vendor, skilled workforce, established wholesale systems and proven track record of building world-class networks.”

Oh, you mean MONOPOLY?! Of course Tel$tra is the only company with the said credentials! I think it’s about time that Tel$tra miss out which allows for some healthy competition. I am certain that there are at least a couple of other companies who could successfully deliver this – but it is dependent on how much Tel$tra drags their feet and allows access to their monopolised network.

Dante 2:50 pm 15 Dec 08

Do Canberrans really want TransACT to build their component of the NBN given their lackluster performance with their first attempt at rolling out a city-wide network?

Considering they reduced their scope mid deployment and started using wholesale Telstra ADSL services to ‘complete’ their coverage, I’d suggest it wouldn’t be the smartest move.

..given the current financial climate, maybe a smart move would be to put this election promise on the backburner?

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