Optus, Elders may rejoin broadband battle

OPTUS and Elders, the thwarted Opel partners, may soon resume their battle with the federal Government over the cancelled $1 billion regional broadband contract.

Optus boss Paul O'Sullivan yesterday signalled the possible resumption of hostilities over the axing of the deal after several months of detente during which Futuris, the parent company of junior Opel partner, Elders, ousted its CEO, Les Wozniczka.

After months of silence on the issue -- during which Optus has continued its campaign to win the $4.7 billion national broadband contract -- Mr O'Sullivan revealed yesterday his team was in contact with Futuris's new leadership and close to making a decision on whether to pursue court action.

"We're continuing to work on that," he told The Australian. "Obviously the changes that have taken place in management at Elders have meant we've had to re-engage with and work with them because we're partners in this venture. We are working with them and hope to be able to announce very shortly our next step."

In early April Communications Minister Stephen Conroy controversially canned the $1 billion Opel deal, claiming it did not provide wide enough coverage and could duplicate Labor's proposed national broadband network.

The move sparked an outcry from the partners as well as multi-million-dollar write-downs from Optus and Futuris.

Weeks later, Mr O'Sullivan publicly lambasted the Government, flagging court action and saying Senator Conroy had not formally responded to a call for a full public inquiry into how the decision was reached to terminate the contract.