The federal government has no hope of convincing private telcos to fund a rollout of high-speed broadband to the capitals in three years, the opposition says.
Labor's communications spokesman Senator Stephen Conroy said today that all major telcos had said they needed significant economic and regulatory reform from this government before they could go ahead in developing a high-speed broadband network.
Communications Minister Helen Coonan said today prospects were good that a provider or group of providers could complete the rollout of a fast fibre broadband network within three years to capital cities, and then to the regions, without using public money.
Her comment followed the announcement by Labor leader Kevin Rudd last week of a $4.7 billion plan to deliver high-speed internet services to 98 per cent of Australians within five years.
His plan is that $2 billion would come from taxpayers, $2.7 billion from the future fund and $5 billion from private companies.
The government has criticised the plan, describing it as a smash and grab raid on the future fund.
But Senator Conroy said the government's proposal would not work.
"Helen Coonan seems to have ignored the fact that Telstra has written to the Australian Stock Exchange a few months ago to specifically state that they will not be building a national broadband network without significant regulatory reform,'' he told reporters.
"Helen Coonan and her government have said that there will be no reform until 2009.
"All of the rival telcos to Telstra have also said they need significant economic and regulatory reform from this government before they can go ahead.''
He said Ms Coonan and Prime Minister John Howard had been "sitting on their hands'' while hundreds of thousands of Australians have missed out on broadband connections.
Australian schoolchildren had been unable to get the educational opportunities of their counterparts in South Korea, Singapore, the UK, Germany, France and the US already had because they have been building fibre networks, Senator Conroy said.
"Australians are suffering,'' he said.
"Australia is sliding back, falling further behind because the Howard Government just doesn't get it when it comes to broadband.''