List of Committee Comments and Conclusions
Chapter 2
2.14 The committee acknowledges that broadband
benefits will facilitate the government's social inclusion agenda, particularly
for those Australians living in isolation. However, the committee also acknowledges
that the extent to which these benefits are felt will be highly dependent on
the extent to which the NBN will be accessible by those in regional and remote Australia.
Conclusion 1
2.26 The committee is of the opinion that, in
order to prevent a difference of measurement modelling, similar to that which
occurred with the assessment of the OPEL bid, possibly resulting in a
consequential delay to the NBN implementation, it would be beneficial for all
stakeholders to know which modelling the department will use to assess the
coverage footprint.
2.38 It is the committee's view that it would be
an extremely unsatisfactory result for the NBN, such a significant government
investment, which has been contributed to by all Australian taxpayers, to reach
only a small percentage of a state's geographical area while leaving a very
high proportion of rural and remote citizens without access to the NBN.
Conclusion 2
2.42 At the time of this report going to print,
neither the department nor the Australian Government had provided any guidance
or further clarification of the composition of the 98 per cent NBN coverage
footprint. The committee believes that the government needs to provide this
clarification to proponents and stakeholders alike to ensure a level of confidence
that the significant $4.7 billion funding will benefit in particular those
Australians that are already underserved or unserved. Particular attention is
required to address the needs of those remote areas that are currently
generating a large percentage of Australia's wealth yet are in the most
underserviced areas.
Conclusion 3
2.73 The committee believes that submissions
received and evidence taken to date strongly support the need for the term
'open access arrangements' to be more clearly defined. The committee calls on
the government to provide a clarification of this term, which is critical to
encouraging ongoing competition in the industry. This would ensure that there
is no potential for a successful bidder to interpret the term to its own competitive
advantage.
2.109 The committee acknowledges concerns of
affordability and service provision, which have the potential to impact on the
long-term sustainability of the NBN operator in providing a viable return of
investment.
Conclusion 4
2.127 The committee
questions the appropriateness of the timeline for the evaluation of the RFP,
believing it will not permit the necessary level of scrutiny by either the
Expert Panel or the ACCC to select the successful proponent for the NBN.
Chapter 3
3.48 The committee considers that the government
should have provided a regulatory framework within the RFP; this would have
provided proponents with greater certainty in building their business case for
the NBN, while also providing a legal framework for the assessment of
proposals.
Conclusion 5
3.56 The committee concludes that omitting to
specify the structure of the new network has caused confusion and uncertainty
among potential bidders and industry stakeholders.
3.88 The committee supports the general consensus
that any new regulations that underpin the NBN should ensure that any
operator/owner of the new network cannot participate in anti-competitive
behaviour.
3.112 The committee encourages the government to effectively
utilises this historic opportunity for regulatory change.
Conclusion 6
3.124 The committee believes that it is in the
interest of the government, the industry and the Australian people to ensure
that delays to the timeframe for implementation of the NBN are kept to a
minimum. Notwithstanding this, the committee considers that the government
should incorporate appropriate and timely opportunities for consultation with
the industry on suggested regulatory changes.
Conclusion 7
3.125 The committee also believes that the
government could easily remove several avenues of possible legal challenge by
incorporating industry consultation into the process, even at this late stage.
Chapter 4
Conclusion 8
4.55
The committee believes that the requirement in the RFP for the NBN
design to be based on a FTTN or FTTP platform should be broadened to enable a
greater level of technology convergence where this is more appropriate than
fibre.
Conclusion 9
4.76 The committee acknowledges the complexity of
the deployment of the NBN. However, the committee concludes that the most
effective use of this substantial expenditure would be to ensure that those
Australian homes and businesses that are currently most disadvantaged should be
prioritised for initial deployment of the NBN. That is, areas that are
currently underserved or unserved should have broadband deployed first, with
infrastructure subsequently rolled-IN towards the cities from
those underserved areas, which are generally in regional, rural and remote
communities.
Conclusion 10
4.77 The committee concludes that the best model
for planning the deployment schedule would incorporate high levels of
coordination and ongoing involvement by local and state governments with the
Commonwealth Government. This would also provide assurance of support through
appropriate regulatory changes within each tier of government.
Conclusion 11
4.78 The committee also concludes that there needs
to be a carefully considered transition plan to migrate both existing service
providers and their customers to the new network over the five year period
specified in the RFP. The aim of this transition would be to ensure that it
occurs seamlessly, with a no disadvantage test over the five years and that it
minimises the issue of stranded assets and stranded customers.
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