Compendium of Priorities and Initiatives (Continued)
Broadband, Communications and the Digital Economy
National Broadband Network
In April 2009, the Government established a new company (NBN Co Limited) to build and operate the National Broadband Network in urban, regional and rural areas. The company will invest up to $43 billion to build the network over eight years, which will initially be publicly owned. Within this funding envelope the Government's objective is to:
- connect 90 per cent of all homes, schools and workplaces with optical fibre, fibre to the premises or 'FTTP', providing broadband services to Australians with speeds of up to 100 megabits per second — 50 times faster than most people experience today.
- connect all other premises in Australia with next generation wireless and satellite technologies that will be able to deliver 12 megabits per second or better.
NBN Co announced on 2 March 2010 the five first release sites to receive high speed Fibre to the Premise broadband on mainland Australia, as part of live trials of its network design and construction methods. These are:
- a part of the suburb of Brunswick in Melbourne;
- an area of Townsville covering parts of the suburbs of Aitkenvale and Mundingburra;
- the coastal communities of Minnamurra and Kiama Downs south of Wollongong;
- an area of west Armidale, NSW, including the University of New England; and
- the rural town of Willunga in South Australia.
These sites are in addition to the three regional sites in Tasmania (Scottsdale, Smithton and Midway Point) where the National Broadband Network is being rolled out and will be offering services from July 2010.
It is expected that the National Broadband Network will support up to 25,000 jobs every year, on average, over the eight year life of the project.
As part of the National Broadband Network initiative, the Government has entered into a $250 million agreement with Nextgen Networks to rollout approximately 6,000 kilometres of regional backbone fibre links benefiting more than 100 regional locations on route to six priority locations. The new competitive backbone links will assist service providers to deliver higher quality and lower cost broadband and phone services to regional consumers.
Construction is underway and all routes are expected to be completed by mid 2011, although shorter links are expected to be delivering services much earlier. This investment in competitive backbone is expected to create more than 1,000 full‑time equivalent jobs and will provide economic stimulus to regional locations during the construction and operation phases.
The Government released the Implementation Study into the National Broadband Network. The comprehensive report was prepared by McKinsey & Company and KPMG and has 84 recommendations for the Government about the National Broadband Network. These cover the technology, financing, ownership, policy framework, and market structure of this important infrastructure project. The Study confirms that high-speed broadband for all Australians is achievable, and can be built on a financially viable basis with affordable prices for consumers. The Government will carefully consider the recommendations in the Implementation Study, and the feedback received from public consultation, before it makes final decisions relevant to the National Broadband Network rollout and operation.
Digital Switchover
The Government is providing $572.1 million over the period 2008‑09 to 2020-21 for a package of measures to drive the availability of improved television services as Australia makes the transition to digital television. Digital switchover will take place on a region-by-region basis, commencing with switchover in the Mildura/Sunraysia area on 30 June 2010, and will be completed by the end of 2013.
As a centrepiece of this commitment, the Government will provide $375.4 million over the period 2009‑10 to 2020-21 for a new digital satellite service, and associated activities, which will ensure that viewers who cannot receive digital terrestrial services can access the same range of national and commercial channels that is available in mainland capital cities. For the first time ever viewers out of the range of normal terrestrial signals, together with viewers in remote parts of Australia, will be able to receive three main digital channels delivering Seven, Nine and Ten network programs, additional digital multichannels such as GO! 7TWO and ONE HD, and all ABC and SBS digital television services.
As part of this satellite funding package the Government will also provide subsidies to eligible households in regional and remote areas currently served by analog self-help transmission facilities, to assist with the cost of installing equipment to receive the new satellite service in their homes, at a cost of $99.1 million over five years (from 2009‑10). For eligible households relying on self-help towers the subsidy will be $400 per household. A higher subsidy is being considered for self-help towers in very remote and far north tropical areas. Further details about the Subsidy will be announced shortly.
The remaining elements of the package focus on the regions that will lead the switch to digital‑only television services: Mildura/Sunraysia on 30 June 2010; regional South Australia will follow on 15 December 2010; regional Victoria in the first half of 2011; and regional Queensland in the second half of 2011. Key activities include the Household Assistance Scheme which assists eligible recipients by providing and installing a set top box and any necessary aerial and cabling work, and a substantial national and local communications campaign to help drive the conversion process and ensure that all Australians are aware of the requirement to switchover. A household is eligible for assistance where they own a functioning TV, do not already have access to digital TV and where at least one resident is receiving the maximum rate of the: Age Pension; Disability Support Pension; Carer Payment; Department of Veterans' Affairs (DVA) Service Pension; or DVA income-support supplement payment.
Rural National Broadband Network Coordinators
The Government has provided $5 million for Rural National Broadband Network (NBN) Coordinators to help regional communities maximise the benefits of the $250 million Regional Backbone Blackspots Program by encouraging broadband awareness, take-up and use. Rural NBN Coordinators are being engaged during the early stages of the backbone fibre rollout. This will allow Coordinators to raise awareness of the new infrastructure deployment as well as highlight new broadband opportunities and services following the completion of the infrastructure.
This initiative will provide dedicated local support to help rural and regional communities take full advantage of the opportunities of broadband and engagement in the digital economy.
Regional Telecommunications Review
The Government responded to the recommendations of the 2008 Regional Telecommunications Review, chaired by Dr Bill Glasson AO, on 5 March 2009. In line with the recommendations made in the Review's report, the Government announced:
- the Digital Regions Initiative to fund innovative broadband applications to improve education, health and emergency services in regional areas.
- the continuation and enhancement of the Satellite Phone Subsidy Scheme for Australians living and working in areas without terrestrial mobile coverage.
- a refocused Indigenous Communications Program to improve basic telecommunications services, basic public internet access and training to remote Indigenous communities.
Digital Regions Initiative
The $60 million Digital Regions Initiative commenced in 2009 and co-funds innovative digital enablement projects with state, territory and local governments. It is a collaborative approach to improve the delivery of education, health and/or emergency services in regional, rural and remote communities.
Round 1 of the program supports eleven projects with funding of $32.9 million. Projects are commencing in 2010 to ensure regional communities benefit as quickly as possible. A second funding round in 2010 will support further initiatives.
Satellite Phone Subsidy Scheme
The 2009‑10 Budget contained details on enhancements to the Satellite Phone Subsidy Scheme (the Scheme) and its extension until June 2013.
The Scheme improves the affordability of mobile communications for people living and working in areas without terrestrial mobile coverage, by providing subsidies for the purchase of satellite phone handsets.
The Scheme provides up to $1,000 for eligible applicants who live in areas without terrestrial mobile coverage, and up to $700 for eligible applicants who live in areas that have coverage, but who spend significant periods in non-coverage areas.
In 2009, the Minister for Broadband, Communications and the Digital Economy announced a number of enhancements to the Scheme. These improvements included:
- An increase in the subsidy to 85 per cent of handset cost, up from the previous 60 per cent, including for the replacement of handsets purchased more than three years ago.
- Additional individual handset subsidies for health and emergency service organisations, up from the previous limit of two subsidies per organisation.
- All people outside handheld mobile coverage areas are now eligible. Previously, the subsidy was only available outside areas where mobile coverage could be obtained with an external antenna.
- More streamlined processes for health and emergency service applications.
Indigenous Communications Program
The 2009‑10 Budget detailed $30 million of funding to install community phones in about 300 remote Indigenous communities, and to monitor and maintain both the newly installed phones and around 250 previously installed phones. The funding also covers payments to participating states and the Northern Territory to improve public internet access and provide computer training in remote Indigenous communities.
Community phone installations under the new program started in mid-2009, and are on target for the first 50 phones to be installed in 2009‑10 and a further 100 in 2010‑11. Over 20,000 calls have been made from the new community phones since September 2009. Community phones provide access to emergency and other medical and support services as well as family and friends, when needed.
The Commonwealth, States and Territories are working with remote Indigenous communities to develop public internet solutions that meet their needs.
In 2009‑10, 46 remote Indigenous communities benefited from the installation of new or improved public internet access facilities. Many of these communities now have public access to online resources and services such as banking, health and education for the first time. This program will benefit additional communities over the next three years as the Commonwealth, states and Northern Territory will continue to work in partnership to install new and improved public internet facilities in remote Indigenous communities.
Australian Broadband Guarantee Program
The ABG program aims to ensure universal access to affordable broadband services for Australians who are unable to access such services on a commercial basis or as a result of other Australian Government funded infrastructure (for example, through the National Broadband Network). The broadband service standards for these end-users are measured against those broadband services most widely taken up in metropolitan markets.
Through the NBN, the Australian Government has committed to provide more remote Australia with faster services via the rollout of 'next generation' wireless and satellite technologies. Going forward, the Australian Government has announced improvements to the ABG to provide access to faster broadband services to eligible premises from 1 July 2010. The changes will see an upgraded threshold service, doubling speeds and download limits, amongst other improvements, within the existing ABG price to the end-user.
ABC Local Regional Broadband Hubs
The 2009‑10 Budget provided $15.3 million over three years to the ABC to encourage and assist the development of user generated content and to establish community web sites and portals, creating 'virtual town squares' for communities to share experiences.
The funding provides for the roll-out of more than 50 enhanced regional broadband hubs. Funding will be used to identify and employ local producers to work on cross‑media stories and to train audiences to create their own content.
The project will also have benefits beyond the ABC - by raising the digital literacy of regional Australians there will be significant benefits for regional businesses, including other media organisations. It will also create approximately 50 new jobs in regional areas across Australia.
The new program — known as ABC Open — was launched on 4 February 2010 with recruitment underway across Australia to identify and recruit multimedia producers to drive the project.
Further information
Further information about this and other broadband and communications initiatives relating to rural and regional Australia is available at www.dbcde.gov.au.
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