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The Hon Malcolm
Turnbull MP
Minister for
Communications
24 September 2013
Implementing the
Coalition's Broadband Policy
The
Coalition Government is committed to
completing the National Broadband
Network sooner, more affordably for
consumers and at less expense to
taxpayers.
NBN Co's
shareholder ministers — Communications
Minister Malcolm Turnbull and Finance
Minister Senator Mathias Cormann — have
today issued an interim
Statement of Expectations to the
company as the first step in
implementing changes to Government
policy.
The interim
Statement will guide NBN Co's
construction and operational activities
pending changes to the Board and while a
Strategic Review and Independent Audit
of the project is carried out and a new
NBN Co Corporate Plan is drafted.
The interim
Statement instructs NBN Co to continue
to roll out the network as rapidly and
cost-effectively as possible throughout
this process.
In the short term,
the interim Statement will see the NBN
Co meet its contractual obligations by
continuing to roll out fibre to the
premises while the company conducts the
strategic review of the project.
The NBN Co has
recently advised the Government that is
proposing to revise its rollout target
for premises passed by fibre by 30 June
2014 down by almost half from the
forecast made four months ago.
The interim
Statement provides NBN Co with the
flexibility to use a wider range of
technologies to connect businesses and
homes to the network. For example, this
will allow NBN Co to trial the latest
VDSL technology to deliver superfast
broadband to homes and businesses in
multi dwelling units such as apartment
blocks.
A key priority will
be to reduce the backlog of 66,000
premises passed by the NBN fibre network
which cannot currently obtain service.
This includes the majority of
apartments, schools and businesses in
areas where the fibre network has been
rolled out.
Under the interim
Statement of Expectations, construction
will be completed in areas containing
300,000 premises where construction
contracts have been signed.
Detailed network
design work is underway in areas
containing a further 645,000 premises.
In geographic areas where NBN Co is in a
position to hand over final designs to
construction partners, some of these
sites may see construction work begin
shortly.
There are also more
than 900,000 premises listed on the one
year rollout plan on the NBN Co website
where only preliminary network design
work is underway. Decisions about actual
construction in these areas will be
taken after the reviews into the NBN
rollout are completed.
These decisions
will ensure there is a steady flow of
work on the NBN until well into 2014.
This will provide certainty for
contractors and ensure they do not have
to demobilize workforces.
We expect this
period of review will lead to revisions
to the timing of the rollout and to
updated forecasts.
It is important to
bear in mind however that the NBN
rollout has, to date, repeatedly missed
its targets.
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