Optus and Elders have entered into a multi-faceted agreement to work together to bring increased choice and service levels to rural and regional telecommunications users through the delivery of broadband, voice and data services.

Firstly, the two organisations have entered into a Memorandum of Understanding to bid for funding to deliver next generation broadband services to rural and regional communities across Australia with the assistance of the Australian Government's 'Broadband Connect' program*.

Paul O'Sullivan, Chief Executive of Optus and Les Wozniczka, Chief Executive of Elders' parent company Futuris Corporation said the Optus-Elders partnership would give rural and regional Australia a combination of proven experience in the provision of integrated communications and service capability through access to Elders locations around Australia.

The two organisations will seek to build infrastructure to deliver high bandwidth services, the infrastructure will be owned by the partnership. Optus and Elders will still compete separately in the retail provision of these services.

Secondly, under a wholesale agreement with Optus, Elders will retail services including internet (dial-up, broadband and satellite), long distance and mobile.

Elders' involvement as a retailer follows its successful completion of trial programs at a number of its rural branches in 2005.

Paul O'Sullivan said Optus was committed to providing telecommunication access to all Australians including those in regional and rural areas.

"We have a proven track record of delivering superior services through strategic partnerships such as this. Optus today delivers satellite consumer broadband to over 10 000 customers in rural and remote Australia under the Australian Government's existing Broadband Connect subsidy scheme.

"This partnership will provide Optus and Elders with a unique channel to expand broadband services to under-served areas of Australia.

"It is an important component of our response to the Government’s request for expressions of interest under Broadband Connect," Mr O'Sullivan said.

Les Wozniczka, said, "We welcome the opportunity to partner with Optus and increase telecommunications service levels for rural and regional Australians.

"Telecommunications is a critical need for our clients, but it is an area which has been under-serviced. The Broadband Connect program has given us the opportunity to contribute to the resolution of what is a pressing need in rural Australia."

Mr Wozniczka said that Elders' involvement in the partnership was analogous to its decision to form the highly successful Elders Rural Bank after it identified banking as an area where its rural clients' needs were not being met.

The two organisations look forward to working with all levels of government in preparation of a final response in bidding for 'Connect Australia' funding.

Note to Editor
*The Optus-Elders Memorandum of Understanding for the provisioning of next generation broadband services is conditional upon receiving funding from the Broadband Connect program and all relevant company and regulatory approvals. Optus and Elders have not yet finalised the technology partners or technology platforms that would be used to deliver the services.

The wholesale arrangement is not conditional.

About Optus
Optus is an Australian leader in integrated communications - serving more than six million customers each day. The company provides a broad range of communications services including mobile, national and long distance services, local telephony, international telephony, business network services, internet and satellite services and subscription television.

About Elders
Elders is a wholly owned subsidiary of Futuris Corporation and Australia's leading rural service provider. With a network of over 400 locations, including 280 rural branches, Elders delivers a multi-product service offering including sale and supply of farm inputs, agency services in wool, livestock and real estate, supply chain management, sale and marketing of meat, livestock and grain and financial services including banking (Elders Rural Bank), insurance (Elders Insurance) and wealth management.