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Joint Standing Committee on the National Broadband Network
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Preliminary Pages
Chair’s Foreword
This month’s announcements by
Australia’s two largest media outlets, Fairfax Media and News Limited, on the
rapid ascent of their digital platforms, are important examples of how
important the new wholesale broadband platform will be for Australia.
This week’s announcement by the National Library of Australia of its embrace of
a greater digital platform is the latest example.
The National
Broadband Network (NBN), over the coming decade, will deeply impact each and
every one of us, either through the way we receive our news and information,
the way we do business and communicate with clients and customers, or the way
we manage our health and education.
Building anything other than the
best wholesale platform is not acceptable. The speed and capacity of a ‘gold
standard’ platform offers significant and obvious quantitative and qualitative
benefits for consumers when compared to a ‘copper-standard’ platform.
With an end sale also written into legislation, this asset is ultimately being
built to be sold – so the better the build, the better the return to taxpayers.
The Joint Committee on the NBN assesses
a range of issues in this Third Report that are relevant to this pursuit of the
best possible build. Included in this report is consideration of an eight month
delay, workforce issues, and performance compared to the soon to be updated NBN
Co Corporate Plan.
So despite several performance
issues being identified, the focus remains on the quality of the broadband
asset we will construct, initially own, and from which we will derive
significant economic benefit. We seek high quality, and therefore high
consumer benefit, from our broadband assets – assets that are becoming as
fundamental to our lives as housing or transport.
This Third Report raises a range of
issues that I urge the Government and NBN Co to respond to in detail and in
depth.
I thank all Committee Members for
their commitment to this process in what is a hotly contested area of policy.
I particularly thank the Secretariat for their on-going work
– they deserve credit for producing a quality Third Report.
Robert Oakeshott MP
Chair
Committee Membership
Chair
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Mr Robert Oakeshott MP
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Deputy
Chair
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Mr Rob Mitchell MP (from
14.3.2012) Mrs Yvette D’Ath MP (until
14.3.2012)
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Members
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Mr Paul Fletcher MP
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Senator Simon Birmingham
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Mr Luke Hartsuyker MP
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Senator Carol Brown (until
21.6.2012)
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Mr Ed Husic MP
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Senator Doug Cameron
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Hon Sussan Ley MP
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Senator Mary Jo Fisher
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Ms Amanda Rishworth MP (from
21.11. 2011)
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Senator Alex Gallacher (from
16.3.2012)
Senator Scott Ludlam
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Ms Michelle Rowland MP (until
21.11.2011)
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Senator the Hon Ian Macdonald
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Mr Mike Symon MP
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Senator the Hon Ursula Stephens (until 16.3.2012)
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Hon Malcolm Turnbull MP
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Senator the Hon Lin Thorp (from
21.6.2012)
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Participating Members
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Senator the Hon Eric Abetz
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Senator the Hon David Johnston
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Senator Judith Adams (until
31.3.2012)
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Senator Barnaby Joyce
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Senator Chris Back
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Senator Helen Kroger
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Senator Cory Bernardi
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Senator Gavin Marshall (from
24.3.2011)
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Senator Catryna Bilyk (from
24.3.2011)
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Senator the Hon Brett Mason
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Senator Mark Bishop (from
24.3.2011)
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Senator Anne McEwan (from
24.3.2011)
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Senator the Hon Ronald Boswell
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Senator Claire Moore (from
24.3.2011)
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Senator Sue Boyce
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Senator Fiona Nash
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Senator the Hon George Brandis SC
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Mr Paul Neville MP (from 10.5.2011)
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Senator Carol Brown (from
21.6.2012)
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Senator Stephen Parry
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Senator David Bushby
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Senator Marise Payne
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Senator Michaelia Cash
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Senator Helen Polley (from
24.3.2011)
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Senator the Hon Richard Colbeck
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Senator Louise Pratt (from
24.3.2011)
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Senator Mathias Cormann
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Senator the Hon Michael Ronaldson
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Senator Trish Crossin (from
24.3.2011)
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Senator Scott Ryan
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Mrs Yvette D’Ath MP (from 19.3.2012)
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Hon Bruce Scott MP (from
26.5.2011)
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Senator Alan Eggleston
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Senator John Williams
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Senator the Hon John Faulkner (from
24.3.2011)
Senator Concetta Fierravanti-Wells
Senator Mitch Fifield
Senator Mark Furner (from
24.3.2011)
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Senator Nick Xenophon
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Senator the Hon Bill Heffernan
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Senator Gary Humphries
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Committee Secretariat
Committee
Secretary
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Mr Peter Stephens
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Inquiry
Secretaries
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Ms Stephanie Mikac
Dr Kate Sullivan
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Research
Officer
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Ms Lauren Wilson
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Administrative
Assistant
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Miss Kane Moir
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Terms of Reference
The resolution of appointment
establishing the Joint Committee on the National Broadband Network was passed
by the House of Representatives on 1 March 2011 and by the Senate on 3 March
2011 and provides:
(1)
That
a Joint Committee on the National Broadband Network be appointed to inquire
into and report on the rollout of the National Broadband Network (NBN);
(2)
That every six
months, commencing 31 August 2011, until the NBN is complete and operational, the
committee provide progress reports to both Houses of Parliament and to
shareholder Ministers on:
(a)
The rollout of
the NBN, including in relation to the Government’s objective for NBN Co Limited
(NBN Co) to:
(i)
connect 93 per
cent of Australian homes, schools and businesses with fibre-to-the premises
technology providing broadband speeds of up to 100 megabits per second, with a
minimum fibre coverage obligation of 90 per cent of Australian premises; and
(ii)
service all
remaining premises by a combination of next-generation fixed wireless and
satellite technologies providing peak speeds of at least 12 megabits per
second;
(b)
The achievement
of take-up targets (including premises passed and covered and services activated)
as set out in NBN Co’s Corporate Plan released on 20 December 2010 as
revised from time to time;
(c)
Network rollout
performance including service levels and faults;
(d)
The
effectiveness of NBN Co in meeting its obligations as set out in its
Stakeholder Charter;
(e)
NBN Co’s
strategy for engaging with consumers and handling complaints;
(f)
NBN Co’s risk
management processes; and
(g)
Any other matter
pertaining to the NBN rollout that the committee considers relevant.
List of Abbreviations
ACCAN
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Australian Communications
Consumer Action Network
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ACCC
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Australian Competition and
Consumer Commission
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ADSL
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Asymmetric Digital Subscriber
Line
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AEW
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Automatically Eligible Workgroup
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AIG
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Australian Industry Group
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AIP
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Australian Industry Participation
Plan
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ARA
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Australian Retailers Association
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BOT
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Build-Operate-Transfer
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CEO
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Chief Executive Officer
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CP
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Conditions Precedent
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CSG
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Customer Service Guarantee
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Cth
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Commonwealth
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DBCDE
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Department of Broadband,
Communications and the Digital Economy
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DEP
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Digital Enterprise Program
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DLG
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Digital Local Government
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DSL
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Digital Subscriber Line
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FAN
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Fibre Access Node
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FY
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Financial Year
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GB
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Gigabyte
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GBE
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Government Business Enterprise
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GHz
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Gigahertz
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GPON
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Gigabit capable Passive Optical Network
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HFC
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Hybrid Fibre Coaxial
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IID
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Implementation and Interpretation
Deed
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ISS
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Interim Satellite Service
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IT
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Information Technology
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ITU
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International Telecommunications
Union
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JCNBN
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Joint Committee on the National
Broadband Network
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KPI
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Key Performance Indicator
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LTSS
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Long Term Satellite Service
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Mbps
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Megabits per second
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NBN
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National Broadband Network
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NBN Co
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NBN Co Limited
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NSW
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New South Wales
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NT
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Northern Territory
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PEA
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Public Education Activity
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PoI
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Point of Interconnect
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PON
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Passive Optical Network
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RDANI
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Regional Development Australia
Northern Inland
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RF
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Radio Frequency
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RFD
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Retraining Funding Deed
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RFT
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Request for Tender
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RoA
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Resolution of Appointment
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RTO
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Registered Training Organisation
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RSP
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Retail Service Provider
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SAS
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Satellite Access Service
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SA
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South Australia
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SAU
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Special Access Undertaking
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SME
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Small and Medium-sized Enterprise
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SSU
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Structural Separation Undertaking
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VoIP
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Voice over Internet Protocol
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VSAT
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Very Small Aperture Terminal
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WA
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Western Australia
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WAS
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Wireless Access Service
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WBA
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Wholesale Broadband Agreement
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WuW
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Work Under Way
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Recommendations
2 Performance Reporting
Recommendation 1
The committee recommends that the NBN Co and the Department of
Broadband, Communications and the Digital Economy review the efficiency
of their current clearance processes for providing answers to questions on
notice so that:
Responses
to the majority of questions placed on notice by the Joint Committee on the
National Broadband Network can be received by the due date;
Its
answers to parliamentary committees are consistent, thorough and complete, so
that ambiguities are minimised in public debate.
Recommendation 2
The committee recommends the Government include key
performance information in its six-monthly National Broadband Network
performance report, listing and detailing: (1) established Business Plan
targets and (2) actual results for:
Homes
passed;
Homes
connected; and
Services
in operation.
Recommendation 3
The committee recommends that the NBN Co as soon as possible,
provide further key information on its website in a user-friendly format, and
also include this information in the six monthly Shareholder Ministers’
Performance Report. This information should include:
The
date of the commencement of work in individual service areas;
The
progress of the rollout in each service area (expressed as a percentage);
The
exact date of completion of the National Broadband Network rollout in each
service area;
Information
about how to connect to the network; and
A
list of retail service providers active in each service area.
Recommendation 4
The committee recommends that the Department of Broadband,
Communications and the Digital Economy, in the development of future public
education activities, undertake a study of similar international networks, with
a view to adoption of:
International
best practice;
Strategies
employed by governments and companies building these networks; and
Concrete
examples of how this technology is being used and maximised by individuals,
business and governments.
3 Regulatory and Pricing Issues
Recommendation 5
The committee recommends that NBN Co include the consumer
protection components of the Customer Service Guarantee in its Wholesale
Broadband Agreement.
Recommendation 6
The committee recommends the Government more effectively
deliver its Digital Enterprise Program to small and medium sized enterprises (SMEs)
with the aim of improving SME access to online resources and enabling
interested SMEs to achieve an online presence.
4 Contracting
Recommendation 7
The committee recommends the Department of Broadband,
Communications and the Digital Economy review its internal processes where the
public interest test is used to assess whether material is
commercial-in-confidence, and provide details of this review to the committee.
Recommendation 8
The committee recommends that, as a matter of urgency, for all
future contracts the NBN Co update, and regularly maintain, its tender registry
to include the following basic information:
A
list of works included in the original request for tenders;
The
dates at which the tender opened, closed and was awarded;
The
name of the awarded company or companies;
The
length of time the services or goods are expected to be completed;
The
value of the contract, or where commercial sensitivities prohibit disclosure,
the aggregate value of the contracts;
The
details of any extensions and variations to contracts as well as the value of
an extended contract;
The
value and percentage of local content in the awarded contract; and
Any
other relevant accompanying information.
5 Services in Regional and Remote Australia
Recommendation 9
The committee recommends that the NBN Co revise its
terminology and language to clarify community understanding of what the three
National Broadband Network services can and cannot support, to enable the
community to prepare for the network’s services appropriately and become fully
informed.
Recommendation 10
The committee recommends that the NBN Co include in its
web-based interactive rollout map specific information on the provision of
voice services for communities in fixed wireless and satellite access areas.
Recommendation 11
The committee recommends that the NBN Co finalise its policy
for the provision of costing extensions to its planned National Broadband
Network fibre footprint:
And
publicise the policy and its process for communities in the fixed wireless and satellite
service areas; and
At
the point of announcing new areas within these footprints, ensure that the
policy is attached to media releases and known to the relevant local government
associations.
6 Private Equity Funding and Telstra Workforce Issues
Recommendation 12
While noting possible revisions in this area in NBN Co’s next
corporate plan, the committee recommends that NBN Co progress its consideration
of debt financing arrangements as a priority.
Recommendation 13
The committee recommends that the Department of Broadband,
Communications and the Digital Economy publicly disseminate a reporting
document on annual progress under the Telstra Retraining Funding Deed.
Recommendation 14
The committee recommends that NBN Co publicly communicate
major areas of emerging training need and workforce demand with regard to the
rollout of the National Broadband Network, to assist with future Australian workforce
planning in this sector.
Recommendation 15
The committee recommends that the
Minister for Broadband, Communications and the
Digital Economy publish, on an annual basis, a detailed statement outlining the
direct and indirect employment benefits of the National Broadband Network (NBN)
rollout, including in terms of local/regional employment and major areas of
emerging NBN workforce demand.
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