Optic Fibre announcement

Aurora-Basslink Optic Fibre Announcement
Monday 10 November 2008
Hobart Function Centre


It’s great to be here this afternoon to celebrate an event that is all about Tasmania’s future.

And to appreciate the future, it can be useful to look into the past – so this afternoon, I want to take us back nearly a century ago.

A lot happened in the year 1914.

Archduke Franz Ferdinand was assassinated in Sarajevo, triggering the First World War.

Henry Ford put in place an assembly line for his Model T family car.

And the British House of Lords rejected a bill giving women the vote.

Here in Tasmania, a Labor Government created the Hydro Electric Department – the single greatest economic and social force in this State in the 20th Century.

Dams, poles and wires that brought electricity to our homes, and jobs to our families.

The first power station at Waddamana was officially opened by the Governor General in 1916, when he reportedly said:

“I trust that this undertaking will open up a new era, not only in Tasmania but for the whole Commonwealth from the harnessing of water power, and Tasmania will develop many flourishing industries, which will attract much additional skilled labour to this State, and provide much employment here, and add to your State’s population and prosperity.”

And so it has come to pass.

There are moments in history that help to define the future.

Today’s agreement between Aurora and Basslink gives us the chance to make this one such moment.  The Governor-General’s quote from 1914 resonates today in what we can achieve.

This is about so much more than lighting up a piece of optic fibre - this is about the clever, kind and connected Tasmania of the 21st Century.

Effective ultra fast broadband infrastructure will be the dams, poles and wires of this new era.

It will underpin our economic strength and jobs growth for decades to come.

And those benefits will come right across our economy – not just in the IT sector.

This is less about IT than it is about creativity and opportunity.

A hundred years ago, the Hydro delivered electricity to homes and businesses – who then turned that electricity into new ventures and new ideas and new industries.

The same thing will happen with the onset of ultra fast high speed broadband services.

It will open the door to the information economy for homes and businesses across this State.

Small businesses will be able to work at internationally competitive speeds with prices that are finally nationally comparable.

Our kids in schools and at home will be better able to quickly access web-based resources, and the world they open up.

Mums and Dads who are struggling along on dial up speeds, will be able to connect to a world of opportunity, at more affordable prices.

Tasmania should be a place with big ideas and wide horizons.

Dynamism, innovation, fresh ideas, new thinking, and optimism – these are the words that I want to see define this new Tasmania.

Until now, the cost of moving data from Hobart to Melbourne has been up to 10 times higher than the cost of moving the same data from Melbourne to Adelaide.

That is appalling and with today’s announcement, it is about to change.


As Premier, I am working to put the stakes in the ground across our economy that will deliver jobs and growth for Tasmania’s future.

In education, the Tasmania Tomorrow reforms that have just passed through Parliament will transform post-year 10 learning in this State.

It will help to provide the skilled workforce of the future, and give every young Tasmanian the opportunity to obtain the qualifications that will put them at the head of the queue for quality jobs.

On the economy - we are currently developing an Innovation Strategy, a ten year Infrastructure Plan and a Skills Strategy, to take this State where it needs to go in the coming decade.

And today, we are delivering on the Government’s commitment to the digital economy and to improving broadband competition.

Aurora has an extensive fibre network which already passes over 30 schools, 14 hospitals, the Hobart Ambulance Centre and 33 Government agencies.

We are now – with the agreement to light up of the Basslink optic fibre – sending a message that Tasmania is open for business.

Open to the smart industries and the creative businesses that will build this information age.

National and global companies have told us what they need - including technology, operational, financial and other requirements that can now be met by a more competitive Tasmanian digital services and infrastructure model.

Telecommunications in the 21st Century is no longer a question of geography.  In the global technological village – everyone lives next door.

This creates opportunities for Tasmania as we become tied to our partners across the world not by geography but by creativity – not by location but by innovation.

The lighting up of the Basslink cable will provide competition in a market that has up until now been dominated by Telstra.

Today’s announcement, I am sure, will result in Telstra rising to the challenge of competition – and that has to be good for Tasmania.

It will open opportunities for more internet service providers to enter the Tasmanian market, giving more choice and cheaper prices to Tasmanian businesses and Tasmanian consumers.

It means that information intensive businesses from Betfair to Blue Rocket, including call centres, data centres, financial processing centres, digital content suppliers and so on – can make Tasmania their first choice location.

And all of that adds up to jobs for Tasmanians.

We are fortunate that through good economic management by this government, and business investing in the Tasmanian economy, our unemployment rate today is an amazing 3.7% - well below the national average.

Our economic fundamentals are sound.

But everyone is well aware of the challenges caused by the current global financial climate.

Economic growth will slow, and Government revenues will soften.  That is why we must act – and keep taking action – to bring industries to these shores that will provide jobs for Tasmanians.

It also will mean better government services – because schools, hospitals and other major service centres will be able to turn faster speeds and cheaper prices into better services for Tasmanians.

The Aurora-Basslink agreement specifically provides substantial broadband capacity at significantly discounted rates for Tasmania’s research and education community.

Today’s announcement is not the end of the story – but the beginning of a new era.

It is a big step in our ongoing commitment to supporting the digital economy in Tasmania and the Government will continue to strategically invest in optic fibre and telecommunications infrastructure.
Aurora will be maintaining and managing the Government’s fibre backbone alongside the gas pipeline and investing further into their own, already-extensive, fibre assets.

I expect that the Government may need to invest somewhere in the order of $10-$15 million over the next few years to provide Aurora with the financial flexibility it will need to fully deliver on the Government's broadband objectives.

But I am prepared to invest much more than this to deliver on the promise of economic growth underpinned by fast telecommunications.

The State will also continue to pursue the construction of a fourth cable through working with the Commonwealth.

Tasmania is the only State Government to be a participant in the $4.7 billion National Broadband Network process. 

We will work with the Commonwealth to make sure Tasmania takes full advantage of the opportunities that the National Broadband Network can provide. 


I’d like to acknowledge in particular the hard work of Treasurer Michael Aird for his commitment to the Aurora and Basslink agreement, which today has come to fruition.

The negotiations were long and complex – and Michael’s perseverance and belief in the ultimate importance of this project to the future of our economy has been vital to getting this done.

Thank you also to Aurora – the Government’s strategic partner in making this happen for Tasmania.

The other part of that partnership have been Basslink and Cityspring.  Their good faith in continuing negotiations until we got this right has been equally vital to being able to make this announcement today.

Today, we are delivering for Tasmanians and putting down a foundation stone for our collective future.

When I talk about a clever, kind and connected Tasmania, this is exactly the kind of infrastructure that will underpin that vision.

And this is only the beginning.

Today’s announcement unlocks our potential, and over the coming weeks and months we will outline a comprehensive vision for telecommunications in Tasmania.