CANBERRA’S main provider of broadband and pay TV, TransACT, has begun negotiating with the Federal Government over its involvement in one of the biggest infrastructure projects in Australian history. TransACT chief executive Ivan Slavich confirmed the IT and communications provider was in discussions with the Government but said no decision had been made about the future of Canberra’s broadband network. Speculation intensified that the Federal Government would buy TransACT’s assets to make way for its national broadband network when the project’s co-chief executive Mike Quigley met TransACT executives last month. ‘‘

Transact is absolutely committed, as we have been for nine years, to providing Canberra with the best possible services. We are continuing to do so now. That is our priority,’’ Mr Slavich said. The Government shocked the telecommunications industry in April when it announced that it would lead a public-private consortium and scrap the previous tender process. TransACT was one of a consortium of five companies bidding to build the network – a $4.7 billion fibre-to-the-node proposal – but the tender was turned down by the government for having not met their expectations.

The new $43 billion national broadband network promises to deliver up to 100 times faster internet connections to 90 per cent of Australia within eight years using fibre-to-the-home technology. But a principal concern for TransACT – which uses fibre-tothe- node technology – is that the national broadband company is the only potential customer to buy or lease its assets. If this were not to occur, there is a risk TransACT’s existing infrastructure could be built over by the federal project. ‘‘The concerns we have are that we already have a comprehensive network in Canberra and significant investment with shareholders, and if the assets were to be overbuilt or duplicated then that is seen as a large concern,’’ Mr Slavich said. Mr Slavich would not say if TransACT was negotiating to provide services on behalf on the national broadband network or if a sale or lease of its assets was its preferred option.

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