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The $4.7 billion national broadband network (NBN) has been touted by Communications Minister, Senator Stephen Conroy as one of his governments' top priorities.
The Rudd government will also provide $8.6 million over five years to be used to develop and monitor the roll out of the NBN.
Telstra and the G9 consortium led by Optus are the only two confirmed bidders to build and operate the proposed network.
Other communications measures announced last night include funding of $270 million over four years to ensure the continuation of the Australian Broadband Guarantee (ABG), which will pick up the remaining two per cent of people not covered by the NBN and $37.9 million to assist in the switchover from analog to digital television broadcasting.