Paul Fletcher (Bradfield, Liberal Party, Minister for Communications, Cyber Safety and the Arts) Share this | Link to this | Hansard source

I move:

That this bill be now read a second time.

The Telecommunications Amendment (Infrastructure in New Developments) Bill 2020 will improve access to telecommunications in new developments.

Access to telecommunications underpins much of today's economic and social activity. The importance of broadband connectivity has been highlighted by the COVID-19 pandemic, with hundreds of thousands of people staying at home, often continuing their work and study online.

When people move into new homes, or occupy new business premises, they expect ready access to telecommunications. Given that the majority of internet traffic is carried on fixed-line networks, people moving into new homes or business premises expect that the developers of those premises will have arranged for this infrastructure to be provided.

Since 2011, the Telecommunications Act has required developers that are constitutional corporations to install what are called fibre-ready facilities—this is essentially pits and pipes which house telecommunications cabling. The requirement is that these fibre-ready facilities be installed in proximity to lots or new buildings before the developer sells or leases them. Unincorporated developers have not been subject to such a requirement.

Since 2011, the majority of developers, both incorporated and unincorporated, have done the right thing and installed fibre-ready facilities. However, there has been a small but persistent failure by some unincorporated developers to install fibre-ready facilities. My department estimates that up to 3,000 premises each year are being sold or leased without pit and pipe facilities as a result.

The impact on those affected, that's to say moving into new residential or business premises, can be significant and includes restricted access to telecommunications, reduced social and economic participation, retrofitting costs and sheer inconvenience.

The cost to a developer of installing pit and pipe during construction is estimated at $600 to $800. By contrast, the cost to a new homebuyer of retrofitting pit and pipe is estimated at $2,100 and can be greater if extensive civil works are required.

For example, in 2017 the buyers of three new homes in a development in Balga, in Western Australia, were presented with a bill of over $10,000 for retrofitting pit and pipe.

The bill I am introducing today addresses this issue. It extends the arrangements that currently apply to incorporated developers to unincorporated developers.

It also makes some minor related changes. It clarifies that the facilities to be installed must be functional. A functional facility must be technically capable of being used in connection with an optical fibre line.

This would mean, for example, that if a pit or a pipe is filled with concrete or earth and, hence, is not functional it would need to be replaced or remediated by the developer.

The bill provides a transitional exemption for projects that are already underway.

Existing exemptions under the Telecommunications Act 1997 will continue and will apply to both incorporated developers and unincorporated developers. For example, there is an exemption where premises are being built outside NBN Co's fixed-line footprint and it is unlikely fixed-line networks will be provided.

The arrangements in the bill are subject to civil penalty provisions. The Australian Communications and Media Authority, as the industry regulator, will be able to enforce the provisions.

The amendments I'm bringing forward mean that people who occupy new premises can have greater confidence that appropriate pit and pipe facilities have been installed, in turn, giving them ready access to modern communications regardless of whether the developer is incorporated or unincorporated.

I commend the bill.

Debated adjourned.