... gov't abg update - full transcript

Regional broadband grants face cuts....
Print Andrew Colley | January 16, 2009 ......

THE federal Government can expect to cut millions of dollars in grants from its long-running rural broadband subsidy scheme after it classed Optus' 3G network as equivalent to service available in metropolitan areas.

It was speculated in the media that the Government would make the move late last year but a letter from the Department of Broadband, Communications and the Digital Economy to state regional broadband development boards confirmed that the decision had been taken.

The decision means that the Government will approve far fewer grants under its Australian Broadband Guarantee (ABG) - which received $270 million in the last budget - as all but a few providers will serve consumers within reach of Optus 3G service.

Peter Hall, the department's ABG manager, wrote to state regional development boards late last week to notify them of the outcome of independent testing of the Optus 3G network.

"As a result of this research, the Department has determined that Optus Networks' 3G wireless broadband services meets or exceeds the ABG metro-comparability thresholds for commercial broadband (Category A) services. The Department has now listed Optus 3G wireless broadband services on the Broadband Service Locator pursuant to section 4.2.4 of the ABG Program Guidelines.

"The Department will shortly finalise all applications from ISPs who are seeking registration under the ABG program and, where relevant, we will be in contact with each applicant to discuss how the listing of Optus 3G may impact on their application,~{!1~} he wrote in the letter seen by The Australian.

A spokesman for Communications Minister Senator Stephen Conroy said: ~{!0~}the purpose of the ABG is to ensure that metro-comparable broadband is available to all Australians. If it is available from a sustainable commercial operator then there is no need for tax-payers to subsidise.~{!1~}

The Department~{!/~}s decision followed network coverage tests on the Optus 3G network. Optus has previously claimed its network covered 96 per cent of the population at the end of 2008 and that it would cover 98 per cent by the end of 2009.

The federal Government declined to reveal its estimate of the carrier's 3G network coverage.

~{!0~}The coverage of the Optus 3G network is commercially sensitive and is a matter for Optus. However, premises within Optus~{!/~} 3G coverage area will be identified on the Department~{!/~}s Broadband Service Locator as being served by Optus and not eligible for an ABG service,~{!1~} Senator Conroy~{!/~}s spokesman said.

Industry sources said the decision would decimate the number of providers eligible for grants and that satellite providers would dominate the few remaining providers to qualify under the scheme.

Non-satellite providers still listed under the scheme include Internode, McPherson Media, Ocean Broadband, SkyMesh, Westvic Broadband and Wideband Networks.

The Government's rural broadband subsidy scheme has been in operation under various guises since mid-2005. The schemes were designed to give regional internet providers a business case to build broadband infrastructure in commercially unsustainable areas.

The Government initially allocated $107.8 million to its HiBIS and Broadband Connect subsidy schemes. Since then the federal Government has expanded the budget to accommodate $450 million worth of claims.

It~{!/~}s currently winding down spending on the strategy. The federal Government has budgeted $85.8 million to run the ABG scheme up to the end of the current financial year. It estimates that spending for the scheme will drop to $69.3 million next financial year and $54 million for the 2011 financial year........................................
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...http://www.australianit.news.com.au/story/0,27574,24920990-15306,00.html
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... mobile 3G is good enough for govt ... ...
... no need for fibre ....
" note - "Industry sources said the decision would decimate the number of providers eligible for grants and that satellite providers would dominate the few remaining providers to qualify under the scheme. " ........NWT?...