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Nbn service plans won't cost consumers more: conroy by ferujkll sdff





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Nbn service plans won't cost consumers more: conroy by
Article Posted: 04/10/2013
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Articles Written: 2023
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Nbn service plans won't cost consumers more: conroy


 
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Senator Stephen Conroy has slammed Opposition leader Tony Abbott scomments that National Broadband Network (NBN) services could cost consumers more than current ADSL plans, sayingAbbott was plain wrong and that he should check hisfacts. The minister for broadband, communications and the digital economysaid in a statement that Abbott had misled the public in his speech to Parliament by saying that NBN services could be three times higher than whatthey currently pay for existing ADSL plans. "Why spend $50 billion on a National Broadband Network so customerscan subsequently spend almost three times their current monthly feefor speeds they might not need?" Abbott said. Why dig up every street when fibre to the node could more swiftlyand more affordably deliver 21st century broadband? And why putso much into the NBN when the same investment could more thanduplicate the Pacific Highway, Sydney s M5 and the road betweenHobart and Launceston; build Sydney s M4 East, the MelbourneMetro, and Brisbane s Cross City Rail plus upgrade Perth Airportand still leave about $10 billion for faster broadband? Conroy said that prices for NBN plans released to date are cheaperthan, or equivalent to, existing ADSL plans, but with much improvedquality of service.



"Internet service providers such as Skymesh are offering NBNservices from $29.95 per month while Exetel s entry-level plan costs $35.00 per month," he said. A number of other retail providers, including Optus, offer NBNservices starting from $39.95 and $49.95 per month. Thanks to theNBN, competition between retail providers is increasing, Conroysaid. Tony Abbott should check his facts before delivering anational address in the Australian Parliament. Conroy alsoresponded to Abbott's comment that investing in the NBN should bereplaced by additional spending on roads.



Mr Abbott clearly doesn t understand that the NBN is classifiedby international accounting standards as an equity investmentrather than a budget expense, he said. The equity investment inthe NBN cannot simply be shifted to pay for more roads, unlessthose roads are being run by a government business making areturn. He added that the Government has a $36 billion infrastructure andinvestment program, including $3.6 billion announced in the 2012-13Budget to complete the duplication of the Pacific Highway by 2016. Earlier this month, Conroy hit back at statements by ShadowMinister for Broadband, Communications and Broadband, MalcolmTurnbull, that the Labor government cooked the books for the Budget 2012-13 by shifting $1.5 billion worth of expenses forward from 2012-13 to 2011-12, including a lump sumpayment of $421 million to Telstra to the current financial year. Inducements provided to Telstra for its deal with NBN Co havebeen brought forward as lump sums totalling $421 million to be paidout before June 30, Turnbull said at the time.



Conroy said that the payment to Telstra was part of $11 billion definitive agreements made on 7 March 2012 with NBN Co giving the final go-ahead forTelstra's structural separation and use of its network assets inthe NBN. There is nothing new about these payments nor can they bedescribed as having been brought forward , he said. Turnbull also said that the NBN price tag had risen by as much as$400 million. He said this was evident in the government'sbroadband spending which is forecast to hit $484 million in the2012-13 Department of Broadband, Communications and the DigitalEconomy (DBCDE) portfolio budget compared to $57 million in the2011-12 DBCDE portfolio budget.



The sum Australian taxpayers are being forced to invest in theNBN between July 2011 and June 2014 has apparently blown out by$400 million, even though the NBN is at least a year behindschedule in its rollout, Turnbull said. Yet the network only has 5000 or so customers currently using itsfibre network, compared to the 137,000 projected by June 2012 inNBN Co s corporate plan. Follow Hamish Barwick on Twitter: @HamishBarwick Follow Computerworld Australia on Twitter: @ComputerworldAU.

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