Alex Gallacher (SA, Australian Labor Party) Share this | Link to this | Hansard source

My question is to the Minister for Broadband, Communications and the Digital Economy, Senator Conroy. Can the minister advise the Senate on the progress of building the National Broadband Network?

Stephen Conroy (Victoria, Australian Labor Party, Deputy Leader of the Government in the Senate) Share this | Link to this | Hansard source

I thank the senator for his question and his interest in the National Broadband Network. When NBN Co.'s three-year rollout program was announced in February by the Prime Minister, we said that we would have commenced or completed 758,000 premises by the end of 2012. The member for Wentworth, on Sky News that day, called that an 'extraordinary promise', and he went on to say:

If they can do that, I guess there will be a lot of admiration in terms of construction.

In August the government released NBN Co.'s 2012-15 corporate plan. The plan showed that the capital cost of constructing the National Broadband Network will be $37.4 billion. The plan was informed by the construction contracts that were signed and the firm agreements that were in place. The plan also confirmed the targets announced with the three-year rollout plan, including that construction will be commenced or completed for 3.5 million premises by June 2015.

Around the country—as you yourself know, Mr President—the NBN Co. is actively building a fibre network. Just in the last fortnight, Senator Pratt has been hauling fibre in Geraldton. Senator Thistlethwaite did the same in Coffs Harbour. The members for Oxley, Blair and Petrie have witnessed and pulled the fibre in Aspley and Goodna, in Queensland. To those who keep baying from the opposite side: almost 30,000 by this week and every single day more new customers. (Time expired)

Honourable Senators:

Honourable senators interjecting—

John Hogg (President) Share this | Link to this | Hansard source

Order! When there is silence, we will proceed.

Alex Gallacher (SA, Australian Labor Party) Share this | Link to this | Hansard source

Mr President, this is my first supplementary question. Can the minister advise how the overall costs of the project translate to cost per service, and how does this compare with similar networks?

Stephen Conroy (Victoria, Australian Labor Party, Deputy Leader of the Government in the Senate) Share this | Link to this | Hansard source

Mr President, as I was saying, fibre construction is up and away in over 65 locations Australia wide, and you can expect to see more and more green fibre in the streets of your cities and suburbs. The member for Wentworth has claimed the cost of building the NBN is much dearer than comparable networks—and we have had the $50 billion, the $70 billion and the $100 billion. Last month the NBN Co. provided the Joint Committee on the NBN with details of the cost of a fibre access network for the premises to be passed this year. What did it show? What it showed was how, through the experience of building the NBN, it is bringing the cost of the local component per premise to between $1,200 and $1,500 per premise. (Time expired)

Honourable Senators:

Honourable senators interjecting—

John Hogg (President) Share this | Link to this | Hansard source

Order! Order on my left! I remind honourable senators on both sides that this is not the time to debate. Order!

Alex Gallacher (SA, Australian Labor Party) Share this | Link to this | Hansard source

Mr President, my second supplementary question is: can the minister provide information about how these costs translate into wholesale prices for broadband in Australia?

Stephen Conroy (Victoria, Australian Labor Party, Deputy Leader of the Government in the Senate) Share this | Link to this | Hansard source

An important part of the NBN is this government's commitment to uniform national wholesale prices. The fibre being deployed in regional areas like Ballarat, Geraldton and Coffs Harbour is priced the same as the fibre in the city. The fixed wireless service and satellite services are priced the same as fibre in the city.

Customers on TransACT's network here in Canberra are also benefiting. In response to the NBN, the wholesale price of 100 megabits on the TransACT network has dropped from $119.95 to $59.90. The only threat to the NBN and uniform national pricing is those in that corner down there, the supposed supporters of regional Australia. We are delivering uniform prices no matter where you live. (Time expired)