Optus and Elders in broadband funding bid

Optus and regional ISP Elders have signed a memorandum of understanding to mutually bid for a slice of the Federal Government’s $1.1 billion Broadband Connect funding.

The Futuris Corporation owned Elders and Optus plan to use the funding to roll out broadband, voice and data services to compete with Telstra in regional and rural Australia.

The partners will mutually invest in, and share, network infrastructure for the provision of high bandwidth services. However both companies will continue to compete at the retail level.

Through the partnership Elders will also resell Optus wholesale services such as dial-up, broadband and satellite connectivity and long distance and mobile calls.

The decision to partner with Elders followed the completion of trial program at a number of rural branches in 2005, Optus said.

According to Optus, the partnership for the roll-out of services in regional rural areas was contingent on a successful application for funding under the Broadband Connect.

Technology partners or platforms to be used in the delivery of services under the partnership had also yet to be finalised, the company said.