Fibre: Coming ready or not

This is just the standard Leftist resort to government compulsion. It's the only way they can get their scheme to pay its way. And even that may not be enough -- unless they ban all other forms of internet access, which they may well do. And what a lovely monopoly that would be! Australians can look forward to the most expensive internet access in the world!

TASMANIAN homes and businesses will automatically be connected to the National Broadband Network unless they actively refuse. The shift from an opt-in system for the NBN in Tasmania to an opt-out model, which could be adopted nationally, was announced by Premier David Bartlett late yesterday.

The move to shore up the viability of Australia's first fibre-optic cable rollout follows official estimates that only 16 to 25 per cent of premises passed by the rollout would take up subscriptions to access the high-speed internet it offers.

Industry experts suggest a take-up of 80 to 90 per cent is necessary if the NBN is to become a focus of service and information delivery.


The shift to an opt-out model came as some of Australia's leading businessmen called for the federal government's $43 billion NBN project to be subjected to a thorough business case. National Australia Bank chairman Michael Chaney said a cost-benefit analysis was needed to ensure productivity gains could be realised. "I feel for any investment of that size you do need to do a thorough cost-benefit analysis," Mr Chaney said at The Australian and Deutsche Bank Business Leaders Forum yesterday.

Wesfarmers chairman Bob Every agreed. "I just see this (the NBN) as another part of infrastructure that we need to go through, stocktake and prioritise," Mr Every said. "And quite frankly I don't know if it (NBN) will rank in priority. I'm not convinced."

ANZ chairman John Morschel said that although faster internet could increase productivity, the business case needed to be clearly made. "I think the lack of a business case and full publicity of that business case is throwing a lot of doubt in people's minds about the level of expenditure - $43bn is a lot of money," he said.

Those involved in the NBN rollout in Tasmania, which is thought to cost taxpayers between $500 million and $700m, have been frustrated by the need to obtain permission from property owners to connect their premises. Without written permission, the law prevents access to premises to take the optic fibre from the street to homes.

Mr Bartlett said he had obtained advice that the state government had the power to legislate to require property owners to opt out of a connection. The state would legislate to achieve this "as soon as possible" and would also consider legislation to exempt the rollout from local government planning schemes.

Mr Bartlett said more than 50 per cent of householders and businesses in the first three towns covered by the rollout had "accepted a connection to optic fibre". However, this figure has been criticised by some in the industry as misleading as it relates to those who have agreed to have their homes made "NBN-ready" - not the number taking up subscriptions to access the network.

That subscription figure, six weeks after the official start-up of the network in the first three towns - Midway Point, Scottsdale and Smithton - remains a closely guarded secret. NBN Co spokeswoman Rhonda Griffin said it was premature to reveal the figure but that "several hundred" homes had taken up subscriptions. "We are pleased with the level of interest we've had," Ms Griffin said.

Mr Bartlett insisted this was a "good early result". "But we're also determined to get that participation even higher, and ensure every Tasmanian householder and business that wants access to super-fast broadband can get it easily and efficiently," the Premier said.

Federal opposition broadband spokesman Malcolm Turnbull said the shift to an opt-out policy "confirms that the business plan of the NBN depends on compulsion and the elimination of competing technologies".

Mr Turnbull said it followed a poor initial take-up at the three Tasmanian trial sites. "The move adds compulsion to Labor's existing plans to shut down competing fixed-line technologies, such as Telstra's copper network, or voice and broadband delivered over HFC pay-TV cables, after NBN is rolled out," Mr Turnbull said. "If Australian consumers want a fixed line for telephony or internet access, they are going to have to use NBN's line - like it or not."

Mr Bartlett insisted the decision was about "finding the most practical and efficient way of connecting our citizens to the digital economy".

A spokesman for Mr Bartlett later confirmed that customers would not be forced to pay for the NBN-ready connection; this cost would be absorbed by the taxpayer-funded NBN Co.

Ms Griffin welcomed the decision to require people to opt out of the rollout.

SOURCE