Monday, May 29, 2006
AUSTRALIA: federal Government plans to use a $900 Million fund for Broadband Internet Project !!
Broadband policy makeover
Paul Osborne
MAY 15, 2006
The federal Government plans to use a $900 million fund to entice telcos to roll out several major broadband internet projects in regional and remote Australia.
The government originally envisioned its $878 million Broadband Connect fund would be used to provide per-service incentive payments to providers.
But Communications Minister Helen Coonan has announced the fund, linked to a new blueprint for the sector, would instead be used to subsidise several major broadband projects.
"The remaining underserved areas and black-spots are now more costly and problematic to address and a per-service approach may not provide the necessary scale to enable providers to roll out sustainable infrastructure," Senator Coonan told a telecommunications users group conference.
"It is for these reasons that I consider it is time to take a fresh approach.
"I believe that the best possible use of Broadband Connect is to set aside the majority of the funding to stimulate investment in large scale infrastructure."
She said such a network would extend broadband into regional and rural areas and may include a mix of technologies, including fibre, copper, wireless, broadband over powerlines, and in more remote areas, satellite.
The government will soon invite expressions of interest setting out its likely requirements for project proposals.
"(We) will seek information from the industry about the likely scope and scale of proposals under consideration, both in respect of geographic coverage, as well as the technologies to be deployed and the services to be offered," she said.
"We will be seeking to encourage projects of major scale that would address existing coverage gaps in a sustainable way and help connect this country."
The move came as Austar, Unwired and SP Telemedia Soul, working together as the Ausalliance, proposed last week to roll out a national broadband network using a mix of technologies and subsidised by Broadband Connect.
Senator Coonan said the Ausalliance proposal was a sign the change of policy on Broadband Connect would be welcome by industry.
She said she would meet state and territory technology ministers in September to discuss ways they could contribute.
Any projects would need to ensure the maximum possible coverage, long-term viability and fair and reasonable wholesale access.
"This is a critically important area, because while we do not want to put unreasonable wholesale requirements on successful projects, we do want to enable competitors to have the kind of wholesale access that enables them to value add, offer high quality retail services and give end users real choice," Senator Coonan said.
A tender process would follow in the second half of the year, with the Australian Competition and Consumer Commission playing a part.
The Minister also revealed today she was working on a broadband blueprint to guide the development of next generation networks.
The change of policy and blueprint came as Opposition Leader Kim Beazley last week used his budget reply speech to map out Labor's plan for a national broadband network covering 98 per cent of the population.
Opposition communications spokesman Stephen Conroy said the government had stolen Labor's policy.
"Labor last year called for a national plan to address Australia's future telecommunication needs that included a national joint venture and audit of telecommunication services, including fibre, and a target for broadband rollout," Senator Conroy said.
"Helen Coonan has responded today with a blueprint that adopts almost all of Labor's initiatives.
"We welcome it, but it's no substitute for Beazley's national fibre rollout."
Senator Conroy told the conference Labor's broadband plan would deliver access to broadband of speeds at least 6Mbps to 98 per cent of Australian businesses and homes via a national fibre to the node network.
It would also set up a framework for a competitive, next generation telecommunications network, which would allow upgrades to faster speeds should better technologies come along.
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