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AMCOM PTY LTD Powered By Docstoc
					            Industry Development Plan
                   1 January 2001 to 31 December 2001

  Submitted to the Department of Communications, Information
                    Technology and the Arts

                     Pursuant to the Telecommunications Act 1997

Industry Development Plan       January 2001 to December 20001     Page 1 of 8
Table of Contents

    1. Introduction                                                 3

    2. Ownership                                                    3

    3. Mission Statement                                            4

    4. Strategic Statement                                          4

         Capital Expenditure                                        6

         Strategic Relationships                                    6
    5. Telecommunications & Information Technology Procurement      7

    6. Research and Development                                     7

    7. Export Development                                           7

    8. Employment and Training                                      8

    9. Reporting and Consultation                                   8

Industry Development Plan          January 2001 to December 20001       Page 2 of 8
    1. Introduction

         This plan covers the period from 1st Jan 2001 to 31st December 2001.
         Amcom Pty Ltd (ACN 009 336 341) became Australia’s 22nd licenced
         telecommunications carrier on 28 July 1998. Since then Amcom has rollout out
         last mile fibre optic based telecommunications networks in Perth, Adelaide,
         Darwin and Hobart. Amcom offers both innovative and cost effective
         telecommunication services to corporate, government and small to medium
         enterprises customers.

         Amcom is also in the process of rollout out a 3,875 kilometre transcontinental
         fibre optic link (known as Project IP1TM) between Melbourne and Perth. Project
         IP1TM will be the first alternative to the existing two incumbent carriers for
         customers seeking high-capacity services across the Australian continent.

         Amcom currently employs 65 full-time staff in Perth, Adelaide, Darwin and
         Melbourne. It is expected that staff levels will increase to 80 during the next year
         due to continued expansion.

    2. Ownership
         The following summary shows the change of ownership of Amcom over the past
         18 months:

         July 1999           International Mineral Resources NL (IMR) took a 10% stake
                             in Amcom Telecommunications Pty Ltd.

         October 1999        IMR increased its invested in Amcom by a further 40%. In
                             the same month IMR changed its name to FiberTel Ltd.

         April 2000          FiberTel increased holding in Amcom to100%.

         June 2000           FiberTel changed name to AMCOM Telecommunications Ltd
                             and AMCOM Telecommunications Pty Ltd changed name to
                             Amcom Pty Ltd.
                             AMCOM Telecommunications is a public company listed on
                             the Australian Stock Exchange. (ASX : AMM)

Industry Development Plan         January 2001 to December 20001                    Page 3 of 8
    3. Mission Statement

         Amcom’s mission is:

           To be Australia's leading national broadband carrier.
           To be the leader in the provision of data and IP services for business.
           To be the provider of value added content and business services over our
            own network.

    4. Strategic Statement

         Amcom has continued the rollout of a fibre optic network in Perth, Adelaide and
         Darwin. We achieved a total of over 220km of fibre optic network rollout over the
         past 12 months. Amcom has developed a customer base made up of all industry
         sectors.      Amcom    customers       benefit      from   innovative   value-based
         telecommunication services backed by excellent service and support.

         The implementation of an Internet Protocol (IP) switching technology across our
         own fibre optic network has also enabled Amcom to develop and market leading-
         edge services to customers. This places Amcom in a very strong position for
         growing its business by utilising lower cost technology than legacy networks, as
         well as providing services that meet today’s and tomorrow’s business needs.

         Amcom has also been successful in accessing some 220 buildings around
         Australia by working with building owners and property managers. This has given
         us fast penetration of CBD buildings and access to the tenants/customers.

         Amcom also established a Network Operating Centre to ensure that our networks
         are pro-actively monitored and managed 24 hours a day, seven days a week.

         In the latter part of the previous Industry Development Plan, Amcom commenced
         the planning process of rolling out a fibre optic network between Perth,

Industry Development Plan         January 2001 to December 20001                    Page 4 of 8
         Kalgoorlie, Adelaide and Melbourne. This network will be a total of 3,8750km in
         length and equipped with the latest DWDM transmission equipment.

         Specifics by Region :

         Western Australia

         Amcom’s fibre optic network in Perth is now well progressed and the focus over
         the next 12 months will be on providing the most advanced switch network
         services in the industry. Amcom already is able to offer the following services:
                        Gigabit Ethernet
                        SDH
                        ATM
         Amcom will deliver innovative solutions to business. Network extension will
         continue as an ongoing process in delivering services to a growing customer

         South Australia
         Infrastructure build will continue within the Adelaide CBD and greater
         metropolitan area. Deployment of both SDH & Gigabit Ethernet networks is
         planned for the next 12 months.

         Northern Territory
         Infrastructure     rollout   will   continue    based     on   projected   new   business
         opportunities. The implementation of an advanced switched network will depend
         on the level of business in Darwin over the next 12 months.

         Amcom began a last mile fibre optic network rollout in the Hobart CBD over the
         past 6 months. Rollout will progress in-line with projected business opportunities.

         Project IP1TM – Cable Rollout between Perth and Melbourne

         During the next 12 months, Amcom will have completed part of the Melbourne to
         Perth rollout with a more detailed time-table shown as follows:

Industry Development Plan             January 2001 to December 20001                      Page 5 of 8
                                                 Commence             Construction
                     Sector /Route
                                                     Date                Time

               Melbourne - Adelaide               Sep 2000             9 months
          Perth – Kalgoorlie / Bunbury            May 2001             10 months
                  Kalgoorlie - Adelaide            Jul 2001            12 months

Capital Expenditure
         Amcom’s anticipated capital expenditure is broken up into Last Mile (City) and
         Long Haul Inter-capital) networks:

         Last Mile Networks
         Over the next 12 months will focus predominantly on connecting new customers
         to the exiting network. Capital expenditure will cover both below ground
         infrastructure as well as switch equipment.

         Long Haul Networks
         Over the next 12 months capital expenditure will cover network construction,
         optical switch equipment and cable stations.

Strategic Relationships

         Amcom has formed a number of strategic relationships covering the following:
                   Consultants
                   Construction organizations
                   Equipment suppliers

         Amcom has established a number of strategic commercial relationships with key
         suppliers. Amcom places a great deal of importance on its relationship with
         suppliers and also maintaining a local procurement policy.

Industry Development Plan            January 2001 to December 20001                  Page 6 of 8
              Organisation Concerned                    Nature of Relationship
                                             Supplier of consultancy and outsourced
         Voran Consultants
         Compuware                           Technical consultancy services

         Cyber Research                      Consultancy

         Enterasys Networks                  Equipment Supplier

         NDC                                 Network Construction

         Diversified Services                Network Construction

    5. Telecommunications & Information Technology Procurement

         Amcom’s network is now entering the second phase of network development
         with the implementation of a switched network. Amcom has selected a multi-
         vendor switched network solution based on Marconi and Cabletron switch
         products. Amcom’s network will utilize both ATM/SDH and Gigabit backbone
         Project IP1 will procure products and services locally wherever possible.

    6. Research and Development

         Amcom has embarked on a number of R&D projects. The main focus of the
         products is orientated around delivering new products and services to customers
         as well as cost effective deployment of networks.

    7. Export Development

         Amcom’s focus over the next 12 months will be to rollout telecommunication
         networks in Australia. Amcom will consider the opportunities to maximize the
         benefits of its in-house expertise, however, over the next 12 months, it is
         anticipated that no export opportunities will be pursued.

Industry Development Plan         January 2001 to December 20001                     Page 7 of 8

         As Amcom’s network delivers extremely high bandwidth (broadband), it is
         anticipated that one major benefit would be the ability to establish remote
         services such as a Call Centre. This means that people may enter the work
         force, in a suitable environment, without having to travel to the central business
         district. Amcom has tabled this concept with the WA Department of Commerce
         and Trade as well as other local government authorities.

    8. Employment and Training

         Amcom’s staff levels have increased over the past 12 months. It is Amcom’s
         intent to increase staff levels in line with operational requirements. Amcom’s
         anticipated staff changes are illustrated below:

                            Function                      Current   Year 2001
          Senior Management                                   4        5
          Sales, Marketing & Bus Development                 16        20
          Finance, Admin & HR                                11        11
          Installation Staff                                 13        14
          Operations & Project Management                    13        15
          Engineering & Technicians                           8        15
                    Total                                    65        80

    9. Reporting and Consultation

         Amcom intends to publish a public summary of its industry development plan
         within 90 days of receiving ministerial approval. Amcom will also provide an
         annual report and public summary at the end of each financial year covering the
         activities of the company during the previous year and outlining any revision to
         the industry development plan as originally submitted.
         Amcom will submit written notice to the Minister as to any matters that may affect
         the achievement of the industry development plan as outlines in the original

Industry Development Plan         January 2001 to December 20001                  Page 8 of 8