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Tuesday, 27 November 2007Aurora shifts focus to fibre in telecommunications strategy
28 November 2007
Aurora shifts focus to fibre in telecommunications strategy
Aurora Energy has announced a significant shift in its telecommunications business, to build on major successes in optical fibre activities which are delivering high speed communications around the State.
As a result of increasing competition and the rapidly changing national policy position for retail telecommunications, Aurora is to divest its involvement with the local retailer TasTel and conclude its Broadband over Powerlines initiative.
Aurora is working closely with its TasTel partner AAPT on the transitional arrangements, and negotiations are under way with parties interested in securing Aurora’s majority TasTel shareholding.
The changes were announced today by Aurora’s Chief Executive Officer, Dr Peter Davis, following comprehensive review of the company’s broad suite of communications activities over the past six months.
“The review has taken place against a background of the cost pressures and service demands for Aurora’s electricity business, resulting in a re-focusing of our telecommunications activities in areas of strong advantage.
“It is essential that Aurora concentrates efforts on areas in which it is able to deliver the best service and commercial outcomes for Tasmanians – electricity distribution and retailing, and carefully selected telecommunications activities,” Dr Davis said.
As a result of the decisions:
· Aurora Energy will sell its shareholding in TasTel
· Aurora’s Broadband over Powerlines project, which has been undergoing technical and commercial evaluation trials since 2004, will not proceed further.
Dr Davis said that in both cases it had become evident that the rapid pace of change in telecommunications and the extremely narrow margins in the telephony reseller sector made it commercially prudent for Aurora to withdraw.
“Aurora continually re-evaluates its strategies in view of changes in policy, technology and the market, and as a result of this review of telecommunications activity we are re-focusing activities to reflect current and emerging developments.
“The optic fibre based strategy on which we are now concentrating draws on Aurora's extensive infrastructure needed to support electricity distribution services.
“Incremental capacity is being made available to Government and commercial users, including the Tasmanian Research and Education Network (TREN) and support for the Government's fibre-to-the-premises broadband project TasCOLT.
“Aurora focus on these activities will be strengthened as a result of the decisions announced today,” Dr Davis said.
The research and education optical fibre network has linked key institutions including the University of Tasmania, CSIRO, Antarctic Division, the Menzies and Ann O’Byrne centres, and a number of schools and colleges. TasCOLT now supplies internet, video on demand and VOIP services to approximately 200 users in New Town and South Hobart, and is being extended to Devonport.
Dr Davis said that against this background and after careful commercial assessment, Aurora’s board and management had determined that the broadband-over-powerlines (BPL) trial should be concluded.
“Although technically successful, the changed commercial environment and the Federal Government Broadband Connect Program preclude the investment required for any extension,” he said.
TasTel will be individually contacting BPL trial participants and assisting them with transfer to other service arrangements.
Released by: Adrian Wild 6237 3341
BACKGROUND – AURORA TELECOMMUNICATIONS INITIATIVES
1) Aurora’s Optic Fibre Infrastructure – continuing to grow
· Aurora’s optic fibre network passes in close proximity to 26 schools and colleges, 14 hospitals and the Hobart Ambulance Centre, and 32 public agency sites.
· Aurora’s network has been developed for electricity system control, and laid out to go past sites that could benefit from competitive high bandwidth access.
· It has recently been extended through the Tasmanian Research and Education Network (TREN) linking UTas, CSIRO, Antarctic Division, the Clinical School, Menzies Centre, Anne O’Byrne Centre, Hellyer College and Reece High School. Aurora developed and owns the networks supplying the TREN consortium.
· In June 2007 the Government signed a contract with Aurora to make Aurora’s fibre infrastructure available to Government agencies, and 10 major sites have been initially signed to this contract.
· The Aurora decision to focus on optic fibre strengthens the relationship with the Tasmanian Government’s strategic direction for communications.
2) History of TasTel – Aurora to relinquish its shareholding
· TasTel was formed in March 2001 as a joint venture between Aurora, Hydro Tasmania and national communications carrier AAPT, with all parties having equal shares.
· Hydro divested itself of its shareholding in 2005 on the grounds that it was not core business, and Aurora took over the Hydro shares.
· This and other minor shareholding adjustments mean that currently Aurora has a 72% shareholding and AAPT 28%.
3) History of Broadband over Powerlines – trial to conclude
· The Broadband over Powerlines initiative began with a very small technical trial in April 2004 for just four properties in Sandy Bay Road, near Aurora’s head office.
· Following this trial a major initiative was publicly launched in September 2005, which marked the commencement of significant technical and commercial testing of the initiative – first at Tolmans Hill, and subsequently in Mt Nelson.
· A North-West trial was commenced in Burnie in December 2005, in Singline Estate and Hillcrest.
· In December 2006 the trials moved to a more detailed commercial assessment phase.
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