Industry welcomes NBN rollout update

The release of further details of changes to the National Broadband Network (NBN) model has been welcomed by industry.

“High-speed broadband is critical to determining the future competitiveness and productivity of Australian businesses. The current transitions underway in our economy highlight the urgency of that investment task,” Australian Industry Group (Ai Group) Chief Executive Innes Willox said today.

“According to ABS data, only 3% of business and government users have high-speed broadband connections, and the figure is lower for small and medium businesses. Most businesses - over 70% - still access the internet via lower-speed ADSL.

“Australian businesses recognise that access to high-speed broadband is increasingly important to their business. 75% of the businesses we surveyed late last year rated access to high-speed broadband as important to their business over the next two to three years.

“We therefore welcome today’s announcement that the currently planned rollout will continue until the end of 2014 and that work is underway for a smooth transition to the multitechnology model from 2015.

“It’s critical that momentum in the build is maintained even while changes to the model are put in train. Suppliers, service providers, shareholders and business customers need certainty about the rollout so they can plan and invest with confidence.

“Of course, there are inherent challenges in revising the model. Meeting a 2020 rollout timetable depends on a series of chips falling into place and minimal disruption to the current rollout.

“We welcome NBN Co’s transparency in setting out the process they and the government will follow, but these issues must be managed closely to avoid delays. We are looking for more detail about the quality and type of services that will be available to business users under the multitechnology model ahead of the release of the new Corporate Plan later this year.

“We will also examine the findings of the full Broadband Availability and Quality Report, released on 20 February.

“Telecommunications infrastructure remains a concern for business. Ai Group’s latest broadband survey found nearly 40% of businesses rated their existing infrastructure as inadequate. The problem is particularly acute for businesses in outer metropolitan and regional areas.

“Changes to the model or rollout timetable to address underserved areas need to encourage cost-effective and high-quality services for businesses as well as residential users.”