Helen Coonan (NSW, Liberal Party, Minister for Communications, Information Technology and the Arts) Share this | Hansard source

I thank Senator Crossin. At least you have to give her some marks for trying. The government is very disappointed with Telstra for pulling out of talks with the Australian Competition and Consumer Commission about the proposal for a fibre-to-the-node network. But, of course, it had proposed to roll out fibre only in populous metropolitan areas—not even in Senator Crossin’s home city of Darwin. Had they done it in the places they had nominated, which were five of the major capital cities, it would have been welcome. For Telstra to pull out at the last minute when discussions were almost complete is, of course, counterproductive. Telstra had been saying that there were very few issues left to be resolved and that they were 98 per cent of the way there. Yet on Monday they completely reversed their position and outlook on the progress and have apparently decided not to proceed, although I understand that is not entirely certain either.

The reasons provided by Telstra for doing so certainly do not stack up. Telstra cited the ACCC’s alleged unwillingness to recognise actual costs. But in fact they have to set access prices. The ACCC is required by law to take into account the costs of the investment and the legitimate commercial interests of anyone who is going to make that kind of investment.

The important thing is that Australians are not entirely dependent on fibre; there are alternatives. Consumers in metropolitan areas and large regional centres should shop around with Telstra’s competitors, nine of whom are already offering ADSL2+ high-speed broadband. It is an option that many consumers are unaware of, and they should actually go and see whether or not anyone is offering an alternative to Telstra. If Telstra ultimately refuses to move to high-speed broadband, then those looking for such services should consider those alternatives.

As well as ADSL2+ broadband, many metropolitan consumers can consider cable broadband and wireless broadband options. Pay TV cable networks pass 3.7 million premises in the cities, offering high broadband speeds. Wireless broadband is also available in all capital cities and offers speeds of up to two megabits, expected to rise to 12 in the coming years. Telstra announced today that its 3G rollout is ahead of schedule, and that will provide very fast speeds.

The competitive rollout of high-speed broadband infrastructure which is taking place will be complemented by a $1.1 billion investment in the Connect Australia package, together with a $2 billion Communications Fund—which, I note, Labor was prepared to rifle for some ill-founded plan of their own.

I have had a conversation with Mr Lindsay. I think you will find that he has revised his view, because he did not realise that the fibre proposal was going to go only to populous parts of major capital cities. On that basis, he has revised his view.