Chapter 3Views on the bill
3.1The committee received evidence in support of the bill with submitters arguing in favour of NBN Co remaining in public ownership for reasons including accessibility and affordability for consumers across the country.
Consumer considerations
3.2Several submitters highlighted the importance of retaining public ownership of the NBN to ensure that national broadband infrastructure remains universally accessible and affordable for all Australians.
3.3In her second reading speech, Minister Rowland explained the importance of the NBN as Commonwealth-owned infrastructure:
… it remains vital that the ongoing mission and focus of the NBN to deliver affordable, accessible high-speed broadband to all Australians be guided by the public interest, rather than the commercial interests of a privileged few.
3.4Highlighting the negative impact of the sale of Telstra on 'critical infrastructure and service quality for consumers', especially those in rural and regional Australia, Minister Rowland argued that:
… the Telstra sale also deprived the government of strategic levers to drive the investment necessary for Australians to fully access reliable high-speed broadband and the productivity and digital inclusion benefits that delivers.
3.5This view was echoed by Paul Budde Consultancy which submitted that privatising NBN Co would risk 'driving up costs for consumers' as any new private operator would seek a return on its investment:
This would be particularly detrimental for lower-income households and regional communities, undermining the goals of universal access. While this can be regulated the sale of Telstra clearly shows that in order to keep the sale price high such regulations were not implemented, resulting in decades of anti-competitive and monopolistic behaviour by the company.
3.6Similarly, the Communication Workers Union (CWU) argued that if the bill is passed, the 8.5 million homes and businesses that rely on the NBN to stay connected will not be:
… threatened with unreasonable price hikes and a deterioration in service quality that would inevitably occur should this vital piece of our nation's public infrastructure be sold.
3.7The Internet Association of Australia submitted that retaining public ownership of NBN Co would be the most likely way of ensuring 'that the NBN stays true to its purpose as a network built to provide universal, fast, high-quality broadband' while making it sufficiently affordable to improve the lives of all Australians and the Australian economy.
3.8Similarly, the National Farmers' Federation (NFF) emphasised the benefits of retaining public ownership of NBN Co, to ensure 'accessible, reliable, affordable and quality connectivity services' for regional, rural and remote Australians. The NFF also highlighted the importance of continued improvements to connectivity for the prosperity of Australian agriculture:
The agricultural sector is acutely aware that continued advancements in connectivity are essential to support Australian agriculture’s 2030 $100billion farm-gate revenue aspiration. Connectivity is intrinsically tied to Australian farmers’ competitiveness, efficiency, productivity and sustainability.
3.9The CWU also noted that NBN workers would be assured the 'greater job security and working conditions' that are provided by Government Business Enterprises should the bill be passed.
3.10Other evidence suggested that retaining NBN Co under Commonwealth ownership could help the company achieve its long-term goal of deploying fibre-to-the-premises (FTTP) across 100 per cent of its fixed line footprint, which would improve services in rural and regional areas.
Economic considerations
3.11According to a 2024 performance audit, the Commonwealth Government has committed $51.4 billion to NBN Co since 2011:
In June 2011, the Australian Government and NBN Co entered into an Equity Funding Agreement, whereby equity funding of $29.5 billion was provided. In addition, in 2016–17 the Australian Government entered into a loan agreement with NBN Co for $19.5 billion which is required to be repaid by 30 June 2024. In 2022–23 the Australian Government and NBN Co entered into an Equity Funding Agreement for an additional $2.4 billion in equity funding to expand full-fibre access to an additional 1.5 million premises by December 2025.
3.12Evidence to the committee suggests that it could be difficult for the Commonwealth to recoup the full value of its commitment if NBN Co were to be privatised. Paul Budde Consultancy explained the economic and political challenges:
NBN Co is currently operating at a net loss of $1.4 billion (FY2023) and holds $42.5 billion in liabilities. Offloading the NBN in such financial circumstances would force the government to accept a significant write-off, making privatisation politically and economically fraught.
3.13This view was supported by Internet Australia, which submitted that privatisation of NBN Co would be unlikely to recoup the large amount of public funds that had been invested in the NBN:
The very real possibility, therefore, is that a very expensive, publicly funded asset will fall into and generate revenue for the private sector – at a significant loss to the Australian public.
3.14Similarly, the CWU argued that given the high cost of offsetting loss-making rural and regional connections against income from high-density urban markets, by the time the NBN infrastructure was completed in 2022, it was becoming apparent that the NBN was 'not an attractive proposition for purchase by private interests'.
3.15The Australian Communications Consumer Action Network (ACCAN) noted that recent regulatory changes, including the August 2023 variation to NBN Co's Special Access Undertaking, had brought NBN Co 'more into line with the regulation of other essential utility services, such as energy and water'. It further argued that greater public oversight of the NBN would 'better allow the network to deliver affordable, quality and reliable communications to all Australians, while promoting greater competition within the retail sector'.
Committee view
3.16The committee supports the evidence that ensuring public ownership of NBN Co is in the public interest, and will support better outcomes for consumers.
3.17For these reasons, the committee is of the view that Commonwealth ownership of NBN Co should be preserved. The committee highlights in this regard that consumers, especially those in rural and regional Australian will experience better accessibility and value from the NBN by keeping NBN Co in Commonwealth ownership. On that basis, the committee supports the provisions of the bill.
3.18The committee recommends that the bill be passed.
Senator Karen Grogan
Chair