The Federal Government has set up a new company to build and operate Australia’s National Broadband Network from as early as July.
In an announcement today, the Government revealed it had scrapped the private-sector proposals it had received to build the “super fast” broadband infrastructure, in favour of a newly created company that will be built in partnership with the private sector. The proposals were deemed as “underdeveloped” by an independent panel of experts and not good value for money in the current economic environment.
The Government has pledged an initial investment of $4.7 billion to the NBN with total investment from the jointlyowned company estimated to be $43 billion over eight years. Private investment will be significant and capped at 49%. Investment will be open to all private companies including Telstra, whose proposal was previously rejected for failing to adequately meet the proposal requirements. The Government’s investment will be funded through the Building Australia Fund and the issuance of Aussie Infrastructure Bonds. It intends, however, to sell down its stake in the company within five years of operation.
The National Broadband Network is anticipated to connect 90% of Australian homes, schools and workplaces via fibre to the premise (FTTP) which will provide broadband speeds of up to 100mbps, 100 times faster than many have access to at present. The remaining premises will be connected via next generation wireless and satellite technologies that will deliver broadband speeds of 12mbps.
The broadband roll out will commence in Tasmania from July with broader implementation set to roll out early next year. The Government first announced its commitment to a high-speed broadband network in Australia in December 2007. A call for proposals from the private sector was made in April last year.
