Greens propose debt relief for NBN Co

The Australian Greens say the NBN should prioritise the provision of an essential service ahead of cost recovery.

The Australian Competition and Consumer Commission’s communications sector market study draft report published earlier this week makes several references to the possible need for the Commonwealth Government to provide debt relief to NBN Co so that it can meet its responsibility to provide services to "uneconomic parts of Australia."

Greens communications spokesperson Sarah Hanson-Young explained that the party would investigate legislative options to support the debt write down.

“Rolling out the NBN has put too much pressure on recovering NBN Co’s costs rather than providing an essential service to Australians. We need to stop thinking of the internet as a profit-making endeavour and start treating it as an important utility like water or electricity,” Ms Hanson-Young said.

“A clear path forward is writing down the debt and moving on with providing world-class internet for all Australians.

“The business model was wrong from the beginning, contributing to ballooning debt for a service Australians are losing faith in. Neither the ALP, or the LNP Government, are willing to acknowledge they stuffed up and the debt needs to be written down. Australians deserve better.

“A staggering 93 per cent of Australians consider the internet is an essential service; well, it’s time the LNP Government caught up with the public and supported measures being taken to prioritise this service.

“As a member of the Joint Standing Committee on the National Broadband Network, I’ll be putting this issue on the agenda to examine a restructure of NBN Co, giving industry, NBN Co and the ACCC the opportunity to rationally discuss this problem and find the best way forward.

“Our world is becoming more connected every day and we are lagging behind as a nation. It is unsurprising that half of Australians have lost hope that the NBN will meet the country’s future internet need – when it’s not meeting our current needs."

What do you think of the Greens proposal to fix the NBN. Should the internet be treated like other key infrastructure projects, or should it exist to make a profit?

11 comments

Privatise the damn thing and let competition for the provision of this service flourish

 

 

 

Rubbish. Privatisation has been a disaster for Electricity prices, and the same will happen here too, with Availability at more remote areas becoming seriously doubtful.

NBN must be treated as an Essential Service, and managed by strong technologists (set up as a Corporation with an independent board) at arm's length from Politicians & Bureaucrats, but NOT privatised. While I usually do not agree with the Greens, they have a very good point here.

Raphael, how can you seriously propose to privatise a monopoly? What right-wing madness! Market forces are NOT the answer to everything. Besides, a monopoly is not even subject to market forces.

For any hope of future business and its customers, Australia needs a proper broadband internet service, if we are to compete globally and have decent domestic services provided by Govt.

The NBN is ESSENTIAL INFRASTRUCTURE, built by taxpayers, just like highways and the electricity grid. The network providers are the ones to make money from it (and they are, despite not adequately delivering the service they are being paid for), not the NBN itself.

Hello my man hating tree hugging friend 

why is the provision of internet services a monopoly

Why can’t private companies provide their own transmission infrastructure or share in the cost or hire them out to others 

I thought you were smarter than that, my hi hitler friend.

The new optic fibre network is owned and maintained by the NBN. When it's provided in your area, you have to sign on with a telco within a certain time (2 years?), or else lose your internet connection when the old copper wire network is dismantled, even though you are only supplied with copper wire from the node to your home.

The telco you sign up with, (ONLY IF YOU WANT AN INTERNET SERVICE or landline phone), is supposed to buy enough bandwidth to supply its customers. The NBN, who is the only supplier (a MONOPOLY!!!) of optic fibre network availability, is selling this bandwidth to private telcos. These private telcos are competing for customers.

No company in its right mind is going to build another optic fibre network - their Boards and shareholders won't allow such stupidity. The second rate network the NBN has built is already saying it won't make any money! What successful company  wants to share in the cost of a lemon? Especially when they can get a piece of the action by simply buying bandwidth from the NBN and on-selling it to a captured audience.

Silly woman 

if there’s demand for it and money to be made , private companies will invest .

how they deliver the infrastructure will of course be based on the value proposition.

stick to your tarot cards and crystal ball old gal 

Privatise???

You ignorant fool Raphael, anyone with a couple of brain cells knows that is an open road to corruption.

Stick to trolling. At least you're good at that!

 

another brainless comment from Retard Reagan.

You  should really learn to man up and take it on the chin when you make senseless  comments Raphael. 

To privatise an essential infrastructure is the idea of a simpleton.

 

I don’t like the smug face of the Greens that's for sure, but have to accept there is a point to their madness. The internet is here to stay and has become an integral part of our lives, a necessity in other words. Few could disagree that the commercial internet has become crucial in virtually everything from business to social interaction.  It is hard to live or do business without the Internet, and the degree to which we take it for granted suggests broadband is an essential part of infrastructure. I am not sure what the answer is because history shows when you regulate a public utility there is no financial incentive to embrace change. 

It's about time both the ALP and the LNP admit they've both stuffed up and the business plan was shot from the start. Until they do that, I can't see how things will progress. 

Agree Vinci, essential services such as telephone, broadcast services, online banking and trading, and transportation systems are increasingly dependent on the reliable and secure operation of the internet. No point in beating about the bush, modern communications networks, including the internet, are critical infrastructures because they deliver essential services. The internet should not be privatised. It pains me to say this because I believe in free enterprise, but in this case and taking all the stuff ups into consideration, it's probably the best way to go.

Can the stupid government ever get anything right?

The answer is no because they have no knowlege of the state of the art of this concept and will not listen to their own advisers.

Ever since this rotten Government have been in they have done nothing but stuff up and screw the country -- its time for them to GO

To the Greens,

If having the NBN as an essential service, then shouldn't there be enough electricity to run it?

Worry about the electricity supply, there will be no need for the NBN without it.

We will have to chop down more trees and sell more wood chips to China to pay for Ms Young's ideas.

Politician’s don’t mind splashing taxpayer’s cash when it comes to ill-fated policy decisions they’ve made … or much else for that matter IMO.

At least $26 million of taxpayers' money went to advertising, consultants, taskforces and legal fees trying to win over the public on the NSW Government's (currently the Libs since 2011) ill-fated greyhound racing ban and forced council merger policies.

http://www.abc.net.au/news/2017-11-02/government-spends-millions-abandoned-policies/9112288

As for the NBN:

I would far sooner see money being being spent on the NBN as an essential infrastructure program than the ever more questionable Adani coal project in Queensland (e.g. proposed Federal government $1 billion Adani loan for the Carmichael coal mine railway line).

 

Yes you are talking sence.

 

 

 

 

 

 

 

sence ?

not cents or maybe even sense ?

:) Agree Somebody. I'm a sensible gal at times .. well sometimes anyway.

:) Re both cents and sense Raphael. I'm a centible gal at times as well.

https://www.engadget.com/2011/06/28/why-is-european-broadband-faster-and-cheaper-blame-the-governme/

The UK's administration hasn't invested a penny in broadband infrastructure, and most of the network in the Netherlands has been built with private capital. (The city government in Amsterdam took a minority stake in the fiber network there, but that's an investment that will pay dividends if the network is profitable -- and the private investors who own the majority share of the system plan to make sure that it will be.)

The game-changer in these two European countries has been government regulators who have forced more competition in the market for broadband.

The market in the UK used to be much like ours here in the U.S.: British homes had two options for broadband service: the incumbent telephone company British Telecom (BT), or a cable provider. Prices were high, service was slow, and, as I mentioned above, Britain was falling behind its European neighbors in international rankings of broadband service.

The solution, the British government decided, was more competition: If consumers had more options when it came to broadband service, regulators reasoned, prices would fall and speeds would increase. A duopoly of telephone and cable service wasn't enough. "You need to find the third lever," says Peter Black, who was the UK government's top broadband regulator from 2004 to 2008.

Starting around 2000, the government required BT to allow other broadband providers to use its lines to deliver service. That's known as "local loop unbundling" -- other providers could lease the loops of copper that runs from the telephone company office to homes and back and set up their own servers and routers in BT facilities.

You can see evidence of the UK's competitive market on the streets of London: Broadband providers splash ads across bush shelters and train stations, touting prices that seem outrageously low by U.S. standards. Post offices sell broadband service; so does Tesco, one of the UK's largest supermarket chains.


Competition is spurring technological improvements. BT and its dozens of competitors realize that they're already pushing old-fashioned copper wires to the limit, and that speeds will increase only if homes are connected to fiber-optic cables. So right now, a consortium of competitive broadband providers is negotiating with BT for the right to use the phone company's poles and underground ducts to build their own fiber-optic network

Tut, Tut  a 2011 article. Have you been asleep?? It's 2017, things have changed dum dum. 

 

EU Broadband Policy

The EU has recognised the strategic importance of broadband, notably in the Digital Agenda for Europe and more recently in the Digital Single Market strategy. However many EU measures relating to broadband apply specifically to the telecommunications sector and are formulated within the context of telecommunications policies and regulation. Broadband was mentioned as early as 1987 at the beginning of a period in which the principal focus of the EU in terms of telecommunications was on liberalisation and harmonisation of markets that had historically been the purview of monopoly operators. A major legislative package in 1998 was revised in 2002 and further revised by a 2009 package that included measures to increase broadband access and to account for convergence between fixed and mobile. Over this period, under pressure from the EU, National Regulatory Authorities (NRAs) in Member States required incumbent operators that owned network infrastructure to 'unbundle the local loop', i.e. provide access to their fixed networks to other operators. Unbundling increased competition and made broadband more affordable for consumers: this period 'saw the price of calls fall, the range of products increase, efficiency improve, and mobile and broadband growth stabilise'.47 The effects of increased competition continue today (e.g. retail prices in the EU declined 20% between 2009 and 2014). However it was also believed that the new 'virtual' operators who would initially provide services using competitors' network facilities would later develop their own infrastructure, following a 'stepping stone' or 'ladder of investment' theory.48 Ultimately facilities-based competition would allow deregulation. 

 

http://www.europarl.europa.eu/RegData/etudes/IDAN/2015/565891/EPRS_IDA(2015)565891_EN.pdf

14 September 2016: European Commission proposed changes to EU telecoms law25 April 2017: vote on the Commission's communication on the 'gigabit society' and 5G in the European Parliament's Industry Committee (ITRE)22 June 2017: vote on the European Electronic Communications Code in the ITRE Committeeby 2025: European Commission wants EU-wide internet speed goal of 100 megabits per second

Further, the study demonstrates that more competition, not deregulation, is a key driver of investment into high-speed broadband. Likewise, where there is less competition, meaning a market is concentrated among fewer players, high-speed coverage is lower.

The German market shows in particular that competition drives investments. More than the half of investments into broadband infrastructure and more than 75% into fibre optics infrastructure are due to alternative providers.

 

https://www.ie.foundation/en/blog/neue-studie-next-generation-networks

Privatise the NBN!-- isn't that what the Libs have done with every bloody thing and look where it has got us -- it is THEIR responsibility -- and we don't need some private company trying to make even more money out of us and out of something that we once owned like Qantas/ Telstra etc --  and the Libs say they got us out of debt! -- if you sell all your assets it would be easy to get out of debt!

Also once you get the NBN which I will have in a couple of weeks -- IF there is a storm around then you unplug the internet modem AND so also the landline , because it is plugged into the modem -- so no one is able to leave a message on your message bank -- and if you are in an area that has poor connection on your mobile -- you are up the well known creek, its a bloody disgrace.   What happens when you have storms like we have and are out for days how the  ---- do you charge a  ---- mobile?

It was labor’s idea to privatise NBN . 

It was built off Govt balance sheet and not carried as a Govt debt because it was to be sold .

11 comments



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