:: Elders Telecommunications’
   vision for rural and regional
   Australians

Why Elders is getting involved in telecommunications
Elders is well known as Australia’s leading rural and regional distribution business.  It has been serving the needs of rural and regional Australians for over 160 years.

Elders offers products and services through an integrated service channel in the areas of: farm inputs, meat and livestock, wool, grain, real estate, insurance, wealth management and banking.  Elders recently added telecommunications services to its suite of offerings. 

Elders sees providing telecommunications services to rural and regional Australians as complimentary to, and indeed a natural extension of, its core businesses.  Being able to access metro comparable telecommunications services, and in particular broadband internet, will enhance the businesses and experience of Elders’ customers. 

Elders is well placed to provide truly local service to rural and regional Australian through its extensive branch network. Elders’ customers are serviced through an extensive network over 400 branches, which reach around 85,000 farm businesses and 200,000 regional customers. 
 
Elders Telecommunications currently offers ADSL, dial-up and satellite broadband internet services to customers in eligible areas, and, as discussed below, has plans to expand the reach of its services to the underserved in rural and regional areas.

Elders’ and Elders Telecommunications’ parent company is Futuris Corporation Limited – a leading Australian diversified company that is principally focussed on the rural and regional sector.   Futuris owns Integrated Tree Cropping (one of Australia's largest hardwood plantation forestry managers and hardwood timber processors), Futuris Automotive (the leading supplier of interior systems to the Australian motor vehicle manufacturing industry) and has a 43% interest in Australian Agricultural Company (Australia’s oldest agricultural company).  In addition to Elders Telecommunications, Futuris telecommunications interests are a 48% shareholding in amcom (which has an extensive fibre network and provides voice and DSL services to SMEs) and, through amcom, a 20% shareholding in iinet (one of Australia’s internet pioneers).  Elders is committed to the telecommunications sector.
 
Providing telecommunications services to the rural and regional underserved
Elders has identified approximately 1.5 million rural and regional premises (out of a total of 4.5 million premises) that are underserved in terms of not being able to access sustainable broadband internet services at metro-comparable terms.  Elders considers that in order to deliver the required broadband services to such customers, a range of delivery platforms are needed: xDSL, wireless broadband and satellite delivery as a method of last resort.

Elders’ and Optus’ joint application for funding under the Broadband Connect Infrastructure Program (BBCIP)
In December 2006, Elders Telecommunications formed a 50-50 joint venture with Optus named “OPEL Networks”.  OPEL submitted an application for the $600 million of Government funding on offer under the BBCIP.  The Program is designed to subsidise the provision of uneconomic wholesale broadband services to ISPs in order for them to be able to offer retail broadband to the underserved on metro-comparable terms.  Elders considers that the $600 million can bring true broadband services to over 700,000 underserved premises.

Elders is hopeful that the BBCIP, together with the Communications Fund and other Government initiatives (including the Australian Broadband Guarantee and Clever Networks programs), will create a shift in rural and regional telecoms by providing new services, choice and competition – all of which is much needed to stimulate the economies of rural and regional towns by providing them the opportunity to participate in the global online economy.  Elders aim is to make a significant contribution to the achievement of such outcomes.

Jason Horley
General Manager, Elders Telecommunications