$1.1 billion for bush communications

Some of this money will flow to MUL over the coming year.

A Plan to Future Proof Telecommunications

17 August 2005

The Government today announced a comprehensive communications package called Connect Australia to give Australians access to first-class telecommunications services with a $1.1 billion roll-out of broadband, new regional clever networks, mobile services and Indigenous telecommunications.

In addition, a $2 billion dedicated Communications Fund will be established and earnings from the fund will be available to provide new communications services for rural Australia. And the Government will provide a more robust regulatory framework for the telecommunications industry, while maintaining strong safeguards to protect consumers.

The Government plans to:

provide $1.1 billion of targeted Government funding to address identified gaps in current services ;
provide a $2 billion C ommunications Fund in capital, which will be invested to deliver an income stream to fund new technologies in regional areas into the future;
strengthen telecommunications competition regulation; and
tighten the consumer safeguards.
The immediate up-front $1.1 billion funding includes:

$878 million for Broadband Connect to provide all Australians with affordable broadband services;
$113 million forClever Networks to rollout innovative broadband networks for new applications to improve the delivery of health, education and other essential services;
$30 million forMobile Connect to extend terrestrial mobile coverage and continue satellite handset subsidies for more remote areas; and
$90 million forBacking Indigenous Ability to deliver a comprehensive package addressing phones, Internet and videoconferencing in remote Indigenous communities and improved Indigenous radio and television.
On passage of the Telstra sale legislation, the Government will establish a range of future proofing measures.

The Government will introduce legislation that requires regular reviews of the adequacy of regional telecommunications services. The Communications Fund of $2 billion capital will be tied to the legislated, regular independent reviews of rural, regional and remote telecommunications services.

Recognising that promoting competition is the best means of providing greater choice and affordable services for consumers, the Government has agreed to a series of reforms to telecommunications competition regulation.

As the centrepiece of the competition reforms Government has agreed to introduce an Australian model of operational separation of Telstra’s internalstructure. Operational separation is designed to ensure that Telstra, as the dominant carrier, treats all other telecommunications companies on a fair basis.

The model for operational separation was developed with expert advice in consultation with Telstra and the Australian Competition and Consumer Commission (ACCC). Compliance with operational separation will be enforceable by the ACCC and the Minister, and will be imposed through a licence condition.

The package also includes tougher consumer protection measures and other regulatory reforms to promote competition in the telecommunications market. A public information campaign will be undertaken to inform consumers of their telecommunications rights and legislated safeguards.






CONNECT AUSTRALIA
A Plan to Future Proof Telecommunications


Telstra Sale
The Government has agreed to a broad, integrated package of measures designed to further encourage telecommunications competition, tighten legislated consumer safeguards and provide major targeted funding assistance now and into the future.

The Government has agreed to introduce legislation to enable the further sale of its interest in Telstra, but a final decision on the timing of any sale has not yet been made.

Connect Australia
To address well known gaps in the provision of mobile and broadband services the Government has committed to the biggest regional telecommunications assistance package in Australia’s history – the $1.1 billion Connect Australia package.

Connect Australia has four components which will rollout affordable broadband connections to people living in regional, rural and remote areas, extend mobile phone coverage, build new regional communications networks and set up vital telecommunications services for remote Indigenous communities.

The $878 million Broadband Connect program will give all Australians access to affordable broadband and build on the success of the Higher Bandwidth Incentive Scheme (HiBIS). The funding will be delivered on a competitively and technologically neutral basis. All broadband service providers will have access to the subsidies. This program will also be used to support the rollout of new wireless, satellite, fibre and high speed copper broadband infrastructure.

The $113 million Clever Networks program will be strategically invested in new broadband infrastructure, supplemented by at least matching funding from other governments or private investment. These networks will be built to improve the delivery of essential services, such as health and education, in regional areas.

The construction of additional infrastructure under Clever Networks will extend the reach of competitive broadband networks to consumers more generally and will be able to be integrated with the Broadband Connect program.

Recognising that gaps in mobile phone coverage remain, and also that some parts of Australia will never be covered by terrestrial mobile networks, $30 million will be provided for Mobile Connect to expand terrestrial mobile coverage and extend the satellite phone handset subsidies scheme.

Remote indigenous communities are among the most disadvantaged groups when it comes to access to modern communications services. The $90 million Backing Indigenous Ability package will deliver community phones, Internet and videoconferencing in remote Indigenous communities, and improved Indigenous radio and television services. The elements of the $1.1 billion Connect Australia package will commence following the successful passage of legislation giving Government the authority to sell Telstra.