OPEL Networks

OPEL Networks Pty Limited
Company type	Joint venture
Industry	Telecommunications
Founded	2006
Defunct	2008
Headquarters	Australia
Area served	Regional Australia
Products	Wholesale broadband solutions using WiMAX and ADSL2+
Owner	Optus and Elders (50:50 joint venture)

OPEL Networks Pty Limited was a telecommunications company focused on delivering wholesale broadband solutions across regional Australia using WiMAX and ADSL2+ technologies supported by a network of DSLAMs. The initiative encompassed both terrestrial and submarine backhaul infrastructure. This enterprise is no longer active.

The company was formed as a 50:50 joint venture between Optus and Elders.

Broadband Connect Funding

In June 2006, the Australian Department of Communications, Information Technology and the Arts (DCITA) called for expressions of interest to invest up to A$878 million through the Broadband Connect program, aiming to enhance broadband coverage in rural and regional communities. Of this, $500 million was earmarked specifically for infrastructure development. By September 2006, the government had committed up to $600 million to support rural broadband infrastructure projects, with submissions accepted until November 2006.

On 18 June 2007, shortly before the federal election, OPEL Networks was announced as the exclusive recipient of the entire $600 million funding allocation, along with an extra $358 million. This financial package was supplemented by $917 million from the OPEL partners. The decision generated controversy due to the concentration of substantial funding into a single provider.

The funding contract was finalized on 9 September 2007, contingent upon OPEL achieving specified coverage milestones. Despite proposing its own National Broadband Network plan, the opposition pledged to uphold the agreement.

However, on 2 April 2008, the government terminated the funding arrangement, citing OPEL’s inability to fulfill contractual obligations—specifically that coverage would only reach 72% of underserved locations. While OPEL’s partners contested this assessment, they confirmed that the project would be discontinued.

Network Infrastructure

OPEL Networks’ deployment plan consisted of:

1,361 WiMAX base stations distributed throughout all states, as well as the Northern Territory and Australian Capital Territory
312 DSLAM units installed nationwide
114 Optus-owned DSLAMs allocated for OPEL’s use across all states except Tasmania but including the ACT
Approximately 2,400 km of new fibre-optic backhaul infrastructure, featuring an undersea cable connection to Tasmania

The project intended to lease long-term fibre links from Optus (covering 10,200 km) and other providers such as Nextgen Networks (2,200 km), along with a Tasmanian connection via Basslink. This arrangement would have enabled OPEL to maintain a protected, self-healing ring network extending to Tasmania.

The selection of WiMAX technology attracted criticism from both the Federal Opposition and rival Telstra, sparking debate regarding its appropriateness for broadband infrastructure deployment.

On 7 January 2008, OPEL obtained spectrum licences from Austar pending funding approval. This allowed the company to operate WiMAX services on licensed frequencies instead of relying on unlicensed bands as initially planned.

Operation

Optus was responsible for constructing the network infrastructure, while OPEL Networks managed its operation on behalf of both Optus and Elders. The company provided wholesale broadband services to its parent entities and other retail providers. Elders intended to leverage its existing retail outlets to market OPEL’s telecommunications offerings.

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