Federal Government’s National Broadband initiative
In April 2009 the Prime Minister, the Minister for Finance and the Minister for Broadband, Communications and the Digital Economy made a joint ministerial announcement that the Government would proceed to build and operate a National Broadband Network (Network) that would connect 90% (since increased to 93%) of all homes, schools and workplaces. The Network would deliver users high speed broadband with speeds of up to 100 Mbit/s using fibre to the premises (FTTP) for 93% of homes and using a combination of wireless, satellite and cable technologies for the balance of premises in Australia.
The announcement proposed that the Network would be delivered by a government company supported with private investment and would cost up to AUD$43bn over 8 years. It would be wholesale only with open access for all retail service providers. The Network would be rolled out in metropolitan, rural and regional Australia.
Since its announcement of the NBN, the Federal Government has been involved in many other National Broadband initiatives, including to:
• Release a National Broadband Network Implementation Study, prepared by a consortium of McKinsey & Company/KPMG, that examines the Government’s coverage, commerciality and competition objectives as well as the detailed operating arrangements of NBN Co Limited, its ownership and structure, ways to attract private sector investment and longer term privatisation.
• Introduce a range of exposure drafts and legislation covering aspects of the NBN such as improved competition and regulatory reform for telecommunications and governance of NBN Co
• Commission Nextgen Networks to construct almost 6000 km of new fibre optic backbone transmission links, as part of the Government’s $250 million investment in the Regional Backbone Blackspots Program
The Federal Government’s NBN website has significant resources and information on the proposed Network as does the Department of Broadband, Communications and the Digital Economy National Broadband Network site.
NBN Co
NBN Co has been established and has commenced various aspects of the design and build of the Network. NBN Co’s CEO, Mike Quigley, regularly presents on aspects of the Network build. The company has released various publications and discussion papers and more recently three Product Overview papers on its Fibre Access Service, Wireless Access Service and Satellite Access Service for comment. As well it has released its Product Technical Specification for its Fibre Access Services.
NBN Co has issued and awarded various tenders for aspects of the network design and build and it has selected the first and second release sites in a range of representative locations throughout Australia.
Industry Consultation
NBN Co has also consulted widely with industry. Two important representative bodies involved in the consultation process are the Communications Alliance and ATUG.
The Communications Alliance, a peak body for the Australian communications industry, has set up an NBN Project to assist the communications industry address requirements arising from the Government's initiative. The NBN Project has developed an NBN Reference Model that identifies the roles and responsibilities of NBN Co and service providers in the NBN framework as well as identifying key principles related to end users, services and interconnection of networks. It has produced a number of informative papers on topics such as Wholesale Services, End User Premises, and End User Migration.
Representing Australian business and government telecommunications end users, the Australian Telecommunications User Group is a membership-based organization. ATUG’s objective is to ensure issues are addressed by government and industry so Australian business and government organisations can accelerate the development of Australia's Digital Economy and achieve real benefit from nationwide high speed broadband connectivity. It has worked to inform and educate its members on the NBN and its implications for business and to influence policy, technical and commercial outcomes to benefit its members and Australian end users generally.
The Impact of the Federal Election
At the time of writing the outcome of the August 2010 Federal Election was not determined. The Labor party and the Coalition each have widely different approaches and priorities for providing a high-speed broadband service to all Australians. The major differences are highlighted below.
It may be sometime before the future telecommunications direction in Australia is determined. As the election result has been so close, once a government is formed any legislative initiatives – including for telecommunications regulatory reform and the NBN Co - will rely on the support of Independent MPs and Senators as neither party is likely to have a clear majority. We will keep you informed of developments.
In the post election, period some segments of the telecommunications industry have stated broad alignment with the Labor FTTP NBN approach and some with the alternative Coalition approach. The Communications Alliance (like ATUG) has instead chosen a focus on enabling the digital economy for the benefit of all Australians. It is advocating a whole of government approach, looking at the objectives of a broadband rollout and the challenges but remaining dispassionate about the technology. It had said it wishes to apply the extensive work it has done to date to whichever version of high speed broadband emerges in the future.
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