If Australians do not opt in to the national broadband network (NBN) as it is rolled out they will lose their fixed-line phone service unless they pay a one-time fee of about $300.
Communications Minister Stephen Conroy has said repeatedly that he would not be forcing homes on to the NBN, however, if consumers want to keep their fixed-line telephone service once Telstra has decommissioned its copper network, then they will need to connect to the new network.
Although the government is covering the installation costs now, those who decline to allow NBN Co on to their property will need to pay up to $300 to connect to the NBN at a later date, according to ISP iiNet chief regulatory officer Steve Dalby. Advertisement: Story continues below
In Tasmania, the only place currently where the NBN is live, of the 4000 homes that were initially offered access, only 45 per cent consented to having the free box and fibre installed, according to The Mercury.
But those who didn't consent could foot a bill of up to $300 if a retail service provider - or ISP such as iPrimus, Internode or iiNet - passes on the connection fee that is required for an installation after the initial roll-out.
Communications Minister Stephen Conroy's spokeswoman said in a statement provided after publication that consenting to the NBN equipment installation "doesn?t oblige people to take a service over the NBN, but it will ensure the premise is connected to the NBN and can readily access a service if they choose to at a later point in time".
In an emailed statement also provided after publication by NBN Co, it said "people were told that if they didn?t complete a consent form a connection charge may apply at a later date".
It also said that its figures showed that 51 per cent of Tasmanians in the first stage consented to be connected.
iiNet's Dalby confirmed a fee of up to $300 would be charged to it by NBN Co, the government company created to build the network, if any of the 55 per cent in Tasmania decided they wanted to connect to the network after the initial roll-out.
But Mr Dalby said that fee was still being sorted out on a national basis with NBN Co and the Australian Competition and Consumer Commission (ACCC).
NBN Co, in an emailed statement, said: "We are still considering options for pricing, in consultations with [retail service providers] and the ACCC, and yet to make a final decision. We are encouraging people to take up a build drop where it is being offered as this will make them NBN-ready when the network is rolled out and activated."
For a "limited time" only, ISP Internode is charging $99 where the fibre has not been installed in the NBN stage one network.
In effect, it could be argued that in order to keep your existing telephone service you would be "forced" into connecting to the NBN by having to pay a fee if you didn't connect initially.
It appears clear that this extra cost is not being made clear to the Tasmanians that chose not to connect initially.
Carrier relations manager at ISP Internode, John Lindsay, told this website that premises that chose not to connect to the network were devaluing the value of their premises.
He suspected one of the reasons that some chose not to get connected to the NBN in the first three towns in Tasmania was because they were rental properties, with the owners - not the tenants - not seeing the letter sent to them to connect them up.
In order to try and increase take-up in Tasmania, its Premier, David Bartlett, will introduce new laws that will make the NBN opt-out rather than opt-in, meaning all Tasmanians that don't want the NBN will need to sign forms.
More state governments will have to change trespass or property laws to ensure households are not left without fixed telephone connections, following the Tasmanian government's move to introduce legislation for property owners to opt-out of the government's fibre network.
NSW and Victoria have said they have no plans to introduce opt-out laws. "NSW currently has no plans to legislate an opt-out model for the NBN and will determine a final position following discussions with other jurisdictions," said a spokesman for the NSW Commerce Minister, Paul Lynch.
In an emailed statement, Communications Minister Stephen Conroy's spokeswoman said: "If you still want a fixed-line you will need to migrate onto fibre ? NBN Co is [initially] installing fibre at no charge".
with Asher Moses
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