Senate debates

Wednesday, 24 August 2011

Bills

Telecommunications Legislation Amendment (Fibre Deployment) Bill 2011; Second Reading

4:39 pm

Photo of Nick XenophonNick Xenophon (SA, Independent) Share this | Hansard source

Thousands or dozens? If I may continue after that very unhelpful interjection by Senator Mason, the quote continues:

… is available to other service providers during the transitional period, prior to the NBN Co fibre deployment.

I think we should listen to TransACT—the ACT government, in effect—in relation to the fact that we might be entrenching further advantage to Telstra. We might be entrenching a further loss of competition and competitive neutrality with this. That concerns me.

I think it is important that where there is a greenfield site it be fibre ready. But it ought to be fibre ready so that you do not have a situation where existing operators—the small end of town, if you like—are being squeezed out by both Telstra, for some of those developments of 100 premises or fewer, and NBN Co.

I think it is worth indicating that the Housing Industry Association has advised that developers reported a cost of installing fibre to the premises in the range of $2,500 to $3,500 per premise. With additional installation costs, taxes, charges and developer margins, the cost will be up in the order of $5,000. The HIA stated:

Based on the numbers provided to HIA, the average cost to the developer per block for FTTP is in the range of $2500 ‐ $3500.

The submission goes on to say that, when combined with additional costs, it is about $5,000. I think there are concerns about the robustness of the costings that have been put out by NBN Co. That needs to be tested. I do support the concept of a national broadband network, but it must be implemented in a way that gives the best value to taxpayers of the use of our funds, of all Australian taxpayers' funds. It must be set up in a way that genuinely enhances competition. It must be established in a way that gives better service than what we have had in the past. It must be set up in a way that ensures that we do not replace one monopoly, Telstra—which constrained telecommunications in this country—with another, NBN Co.

Therefore, whilst I support the principle of this bill and I support the second reading of this bill, I will very closely look at the amendments being proposed, particularly by the coalition, to see if they will improve it. If the coalition's amendments will stymie the effective and efficient rollout of the NBN then of course I am not likely to support those amendments. But if those amendments will genuinely enhance competition, give a level playing field for the small business sector and ensure the principles of competitive neutrality, then those amendments will have my support.

I hope that the minister, Senator Conroy, who has a real passion for the NBN, who has driven the reform on this, will note that my questions in the committee stage come from a genuine basis of wanting this to work in the most effective, efficient way possible to ensure that we do not end up with a son of Telstra with the NBN, which I hope will not be the case. That is why we should not dismiss out of hand a number of the amendments proposed by the coalition or at least deal with some of the serious concerns expressed in a sense by those amendments. I support the second reading of the bill.

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