Across the Spectrum

• NBN blow: AAPT withdraws

  21/10/2008

  TERRIA, the consortium of telecommunications interests bidding for the massive National Broadband Network project has suffered a blow with New Zealand Telecom's Australian unit AAPT withdrawing from the project.

  AAPT said in a statement that it had always been clear "about its intention not to support any network build."

  AAPT chief executive Paul Broad said the company was less interested in the ownership structure of the NBN project, and more focused on ensuring the regulatory settings ensured competition and a good outcome for Australian consumers.

  The withdrawal has been taken by some analysts as signalling a lack of confidence in Terria's ability to win the bid.

  Terria was forced today to publicly recommit to the project, releasing a statement confirming it would still bid for the project.

  Terria chairman Michael Egan said he regretted that AAPT would no longer be a participant in the project, adding that AAPT continued to support the TERRiA principles.

  "AAPT's owner, Telecom NZ, is undertaking major capital investment in New Zealand and I can understand it wanting to focus on its home turf," Mr Egan said.

  "However, its decision will not affect TERRiA's bid."

  "We have an excellent business case and are more than confident of our ability to fund the new network."

  It is understood Terria has also been forced to rethink its funding plans as a result of tight credit markets created by the global financial crisis.