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Monday June 18, 8:46 AM

SingTel unit gets funding for Australian broadband plan

SINGAPORE/MELBOURNE, June 18 (Reuters) - Singapore Telecommunications Ltd. said on Monday its Optus unit has secured A$958 million ($807 million) in funding from the Australian government for its broadband joint-venture.

The joint venture with Futuris Corp Ltd. unit Elders will build new networks to extend broadband coverage to rural and regional areas. The government funding comprises A$600 million from the previously announced Broadband Connect Infrastructure Programme and an additional A$358 million in funding to further extend high-speed affordable broadband services to rural areas, a joint statement from Optus and Elders said.

The government funding is a blow to larger rival Telstra Corp. Ltd. , which also hoped to win some of the infrastructure grants to extend rural broadband coverage.

Under pressure in an election year, the Australian government is expected to set up a review panel soon to examine building a separate, high-speed fibre optic broadband network, which will be put to an open tender.

Australia's existing broadband network is slow compared with other nations, but a stalemate between Telstra and the industry regulator over pricing has delayed plans to build a fibre network. ($1=1.187 Australian Dollar)