AAPT spreads its risk on FTTN

David Kennedy, research director at Ovum, said the telco’s decision to pull out of Terria is a significant one.

“AAPT is the second most important operator in the consortium, and its absence will significantly reduce the commercial and lobbying heft of the Terria bid,” he said.

According to Kennedy more significant is the reason why it left.

“Paul Broad, CEO of AAPT, has stated openly that it is less concerned about the ownership of the FTTN network, and wants to focus its attention on the regulation of the network,” he said.

“Effectively, AAPT is developing a 'Plan B' in case of a Telstra win.”

He claimed this will certainly be interpreted, fairly or unfairly, as a lack of confidence in Terria's chances of winning the bid process.

“The Terria bid faces significant hurdles, especially raising capital,” said Kennedy.

“It’s dangerous for Telstra's competitors to put all of their eggs into the Terria basket. That is why 'Plan B' is necessary.”

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