NBN will be tested in Tasmania

Rudd says access costs determined after Apple Isle build

Tasmania will be the guinea pig for determining cost and take-up of the $43 billion National Broadband Network (NBN).

The coalition has claimed NBN access prices will need to be as high as $200 for the joint state-private owned NBN Company to achieve a financial return within the slated eight year period. Some more moderate experts suggest access prices could be about $70 over a longer time frame or with greater take-up.

The government will retain its $4.7 billion investment, and will initially hold a 51 percent stake in the NBN Company, to be sold-down within five years after project competition, and funded through the Building Australia Fund and Aussie Infrastructure Bonds.

Prime Minister Kevin Rudd today told ABC Radio the Tasmanian fibre network will provide a better indication on NBN adoption, which will in turn determine access pricing.

The Tasmanian build is slated to commence in July, spearheaded by utilities Aurora Energy and Basslink.

Communications minister Stephen Conroy dismissed the $200 access prices as “wild claims” and said they will be structured proportionally to comparable services.

“NBN prices cannot be structured without having careful regard to the prices people pay today for comparable services,” Conroy said.

“The discipline of genuine competitive pressure in the market drives lower prices, innovation and greater choice of different services and price points.”

Conroy said the NBN will receive funds through new “revenue-generating services” provided by the high-speed network.

Shadow communications minister Nick Minchin accused the government of not subjecting the NBN to the same level of cost analysis as other smaller infrastucture projects.

Telstra has another opportunity to participate in the construction of the NBN after it was excluded from the initial tender will rounds.

More about: ABC, ABC, Aurora Energy, Billion, Speed, Telstra

Comments

1

Anonymous

Thu 30/04/2009 - 18:49

Broadband in Tassie

While I tend not to believe anything Conroy, OR the opposition say regarding IT, I really hope this succeeds.

Unlike his evil net-censorship scheme.

2

born in burnie

Sat 02/05/2009 - 09:08

good on tassie

was born in tassie a long time ago and congrats on the government for giving them the high speeds first. they have suffered longer than anyone else in australia with the monopoly of telstra. lets wait and see just how much telstra's prices can fall when there is competition down there.

3

Anonymous

Sat 02/05/2009 - 11:59

Why would Telstra prices fall in Tassie with competition? they have the same retail price nationally, they haven't dropped in other markets where competition exists. Telstra do not attempt to compete, that's not how they operate, they go for the mum and dad type customers how don't download much or know any better.

4

Anonymous

Sat 02/05/2009 - 17:31

Competition in Tasmania

High speed access will mean a vastly bigger range of programs and services, which should create its own momentum and give a much more competitive market.

Telstra may have the same card rates nationally, but they have a habit of cutting prices in some areas to buy market share. This seems to be mainly a tactic to force out their smaller, thinly capitalised competitors, then presumably they revert to maximum pricing.

And yes, hopefully we will all be able to enjoy NBN access without having to suffer the dead hand of Mr Rudd and Mr Conroy's little helper, The Filter.

5

Cookey

Fri 10/07/2009 - 17:04

For those of you that do not live in Tassie, here are a couple of truths. The upload and download speeds with Telstra are exactly the same no matter what broadband plan you are on. I have tested and proved this for years. Also Telstra's bigpond broadband was developed and used in Tassie before any mainland state, this I can also prove as I was one of the founding members. Telstra has screwed us ever since they closed down the only r&d place in Australia, Launceston.
I, like many others really hope this new system works, sick of being screwed.
For anyone that supports Optus,they do not supply an internet service in Tasmania, also their mobile phone network does not work at all in 95% of this state. Plus Optus is owned by some squinty eyed mob in asia.

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