Recommendations
Recommendation 1
2.14 That the Government abandon the National
Broadband Network project.
2.15 That if, in the alternative, the Government
insists on progressing the NBN, it be progressed in accordance with the
recommendations contained in the remainder of this report.
Recommendation 2
2.75 That the Government require the Department of
Finance and Deregulation (the DoFD) to calculate the net present value of the
NBN, using the data and assumptions contained in the Implementation Study, and
based on a calculation of the weighted average cost of capital in accordance
with the usual principles applied by the DoFD in relation to public capital
expenditure.
Recommendation 3
2.80 That the Government provide a comprehensive
response to the Implementation Study as soon as possible.
2.81 That the response clearly articulate in
detail:
- a mandate for NBN Co and when, how and where that mandate will
be formally recorded;
-
the proposed funding arrangements for NBN Co, including a
statement of all intended future equity contributions to NBN Co or NBN Co
subsidiaries, the quantum and timing of each, and the arrangements the
Government will make to formalise its funding agreement with NBN Co;
- a business plan for the NBN, where necessary developed in
consultation with NBN Co, and including a cost-benefit analysis;
- the proposed timetable for the roll-out of the NBN to all
Australian premises, including the type of services that will be available in
particular, identified locations;
-
the future of the Universal Service Obligation and how
services will be guaranteed and funded for regional and remote Australian
premises.
Recommendation 4
3.33 That NBN Co consult with local councils at the
earliest possible stage as to the most appropriate local roll-out plan and
local planning requirements.
3.34 That each local roll-out plan seek to
coordinate the roll-out of the NBN with other activities occurring in the local
government area so as to best realise potential synergies, cost savings, and
benefits to local residents and businesses.
3.35 That the Government favour underground cabling
in the remainder of the 90 per cent Fibre to the Premises footprint, ensuring
long-term, future proof benefits for the network, its investors and its
consumers.
Recommendation 5
3.47 That the Government clarify whether NBN Co
(and its subcontractors) will be exempt from development consent and landowner
consent requirements in all States and Territories.
Recommendation 6
3.48 That Commonwealth, State and Territory
environmental and planning legislation, and State and local government planning
policies concerning development and landowner consent requirements, be reviewed
to ensure that fibre and related infrastructure can be effectively and
efficiently deployed both to the premises and within premises.
Recommendation 7
4.56 That the Government detail its understanding
of the likelihood that there might be failure in the Layer 3 wholesale market,
and what it understands would be the consequences of any such failure for
service delivery and innovation potential.
Recommendation 8
4.75 That NBN Co formally engage consumer groups in
its industry consultation processes. That such consultation be in addition to
the involvement of consumer groups in NBN Co's information sessions.
Recommendation 9
4.98 That the Department immediately consider
whether potential decisions on network architecture will create a risk that NBN
Co and/or the Government will be liable to pay compensation to third parties,
and the likely quantum of any compensation.
Recommendation 10
4.103 That NBN Co release a detailed implementation
plan describing how and when services will be provided to specified regional
and remote locations, and what the cost of connection will be for regional
householders.
4.104 That the implementation plan prioritise the
servicing of regional and remote locations so that the network is 'rolled-into'
urban areas from regional and rural areas.
Recommendation 11
4.113 That priority assistance customers, like the
elderly, hospitals, and emergency services, have access to a working landline
telephone service in the event of a mains power failure to the premises.
4.114 That there be a mass-education campaign to
alert end-users to the consequences of a non-copper telephony service in the
event of a mains failure to their premises.
Recommendation 12
5.26 That the NBN Co Bill be amended so that NBN Co
can only provide services at Layer 2 and below.
5.27 That, in the event that a competitive market
for the supply of unbundled Layer 3 services does not develop, the Government
consider arrangements for a Universal Service Obligation to address this
failure, particularly in regional and remote areas.
Recommendation 13
5.37 That provisions of the NBN Co Bill relating to
the future privatisation of NBN Co be amended to clarify what is meant by
'built and fully operational'.
Recommendation 14
5.38 That the NBN Co Bill be amended so that a
declaration by the Communications Minister that the NBN should be treated as
built and fully operational is a disallowable instrument. That is, that clause
22(8) of the NBN Co Bill stating that such a declaration is 'not a legislative
instrument' be deleted.
Recommendation 15
5.39 That the NBN Co Bill be amended so as to
expressly require NBN Co to meet minimum service obligations after the
cessation of Commonwealth majority ownership. Those obligations must include
that:
-
NBN Co retain its capacity to provide broadband services to
100 per cent of Australian premises;
- NBN Co retain its capacity to service 90 per cent of
Australian premises with Fibre to the Home services with speeds of up to 100
Mbps;
- NBN Co retain its capacity to service the remaining 10 per
cent of Australian premises with broadband connections of speeds of at least
12 Mbps;
- NBN Co develop and maintain its capacity to supply Layer 2
services to 100 per cent of Australian premises; and
- NBN Co maintain its open-access network, providing wholesale
services on an equitable basis.
Recommendation 16
5.40 That the Government consider ways to
'future-proof' NBN Co's services. This must include a specific requirement that
NBN Co report to the ACCC every five years on developments in broadband
services in other comparable advanced economies, and that if the report
demonstrates that NBN Co's services are falling behind those available to a
majority of end users in other comparable advanced economies, lay out a plan to
close the gap.
Recommendation 17
5.41 That the NBN Co Bill be amended so as to
explicitly require NBN Co to publicly disclose its service performance even
after the cessation of majority Commonwealth ownership.
Recommendation 18
5.49 That the NBN Co Bill be amended to explicitly
set out the basis on which minority equity owners can request access to any
information provided by NBN Co to the Government.
Recommendation 19
5.55 That the Government establish a consumer
advisory group dedicated to the NBN. That the NBN Co Bill be amended to require
NBN Co to have regard to the advice of that consumer advisory group when
performing its functions.
Recommendation 20
5.56 That the Government and NBN Co prepare a
strategy to address how end-user complaints are to be handled, and review the
sufficiency of current resourcing and processes of the Telecommunications
Industry Ombudsman to handle the expected future workload.
Recommendation 21
6.20 That the Access Bill be amended so as to
provide guidance on what is meant by 'efficiency' for the purpose of the
equivalence provisions. The amendments should also ensure that volume
considerations cannot be counted as matters which 'aid efficiency' for the
purpose of obtaining an exemption to the non-discrimination obligations on NBN
Co.
Recommendation 22
6.21 That the Access Bill be amended so that ACCC
pre-approval is required of any agreement to which NBN Co is a party and under
which an access seeker is granted access on discriminatory terms on the basis
of the 'efficiency' exception.
Recommendation 23
6.30 That the Government make public its intentions
as to the future of Telstra's USO in relation to telephony services.
Recommendation 24
6.31 That the Government make public its intentions
as to whether and how there will be a future universal service obligation to
provide broadband services, and the associated cost implications for the
Australian people.
Recommendation 25
7.45 That the Government, in consultation with NBN
Co, immediately undertake a skills audit for the NBN to ensure there is a fully
skilled workforce ready to deploy the NBN in each region. The audit should
detail:
(a) the training courses
required;
(b) the training timeframes
involved; and
(c) the training institutions
available.
Recommendation 26
7.46 That the Government, in consultation with
industry groups and NBN Co, develop national standards and national training
modules and accreditation processes to ensure the NBN workforce is
appropriately skilled.
7.47 That such modules and accreditation processes
be tailored to suit the differing needs of workforce participants who will come
to the NBN with varied levels of prior relevant experience.
Recommendation 27
8.26 That the Government and NBN Tasmania create a
single public document, to be released as soon as possible, which sets out all
remaining stages in the planned roll-out of the NBN in Tasmania, including the
expected timetable for the roll-out, and the expected timing and quantum of any
future Government-funded equity injections.
Recommendation 28
8.27 That NBN Co make widely available, for all
prospective end-users across Australia, information on:
- when NBN services will be offered in their region;
- how the NBN-based products will differ from their current
services;
- what preparation of their premises they need to, or should do,
prior to installation;
- what potential property disruption could be caused to their
premises or surrounding areas during the deployment of the NBN or the internal
installation of equipment within their premises; and
- how much the services will cost them to purchase from a
retailer.
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