Taking control

AUSTRALIA: Not only banks are falling under government control these days. Australia’s government has announced that it will establish a company to a provide super-fast broadband connection to “every person and business in Australia”.

The country’s telecommunications firms had hoped to win the contract for themselves, but their bids were either too high or regional plans only, according to a government report.

Prime Minister Kevin Rudd says that the government will invest up to A$43 billion (€23 billion) over eight years. "It is the most ambitious, far-reaching and long-term national building infrastructure project ever undertaken by an Australian government," Rudd told the Sydney Morning Herald.

"This is our most ambitious infrastructure project ever," says Prime Minister Kevin Rudd.

Telecommunications firms will be encouraged to invest in the project, but to raise additional financing, the government will offer "Aussie infrastructure bonds" to the general public.

Prime Minister Rudd also says the project will stimulate the economy by 0.25 per cent a year and provide about 37,000 jobs during installation of the fibre-optic cables. The government will sell the company a few years after the broadband network has been completed.

Read about working with Australians in Business Spotlight 3/2009.