Issue: 14/08

Australia’s National Broadband Network

April 16, 2008

The Minister has announced the release of the Request for Proposals (RFP) to roll-out and operate the National Broadband Network.
Click Here

“ The Government encourages interested parties to come forward with innovative proposals. These will be assessed by the Panel of Experts announced on 11 March 2008, who will then provide their recommendation to Government so that by the end of year the Government can announce the successful proponent and the new network build can then commence.”

The RFP documentation is available on the AusTender website. There is a simple registration process and the document number is DCON/08/18. Proposals must be received by 3.00pm AEST, July 25 2008.

Further information on the National Broadband Network and how to make a submission is available here

The RFP details the scope of the National Broadband Network, which will:
• deliver minimum download speeds of 12 megabits per second to 98 per cent of Australian homes and businesses;
• have the network rolled out and made operational progressively over five years using fibre-to-the-node or fibre-to-the-premises technology;
• support high quality voice, data and video services including symmetric applications such as high-definition video-conferencing;
• earn the Commonwealth a return on its investment;
• facilitate competition in the telecommunications sector through open access arrangements that allow all service providers access to the network on equivalent terms; and
• enable uniform and affordable retail prices to consumers, no matter where they live.

The Minister has also invited industry and public interest groups to provide submissions on regulatory issues associated with the National Broadband Network. Click Here

"In addition to an investment of up to $4.7 billion, the Government is prepared to consider changes to existing telecommunications regulations, to facilitate the roll-out of the National Broadband Network.

(We) recognise the critical importance of future telecommunications regulatory settings, including ongoing consumer safeguards, to ensure the best outcomes for all Australians and the competitiveness of the economy.

The submissions will be due one month prior to the closing date for National Broadband Network proposals.

All regulatory submissions will be made available to National Broadband Network proponents, to assist in the development of proposals.

The Panel of Experts, who will be assessing the proposals, will also be able to consider these submissions before making its recommendation to Government.

The Government will make submissions publicly available, but reserves the right to not publish submissions or parts of submissions where it considers it appropriate to do so for confidentiality or other reasons."

Submissions must be received by 3.00pm AEST 25 June 2008.

Lastly, the Minister called for submissions on policy and funding initiatives to provide enhanced broadband to rural and remote areas. Click Here

"The Australian Government is committed to improving broadband for all Australians, including the two per cent of homes and businesses which may not be covered by the National Broadband Network.

Submissions on remote broadband will be accepted in parallel to proposals to roll-out the National Broadband Network.

The Government has already committed $95 million for the Australian Broadband Guarantee for the 2008–09 financial year.

This process will explore long-term options that ensure rural and remote areas of Australia have access to the best available broadband services through future-proof telecommunications infrastructure. This could include enhancing the Australian Broadband Guarantee program to achieve outcomes comparable to the National Broadband Network.

Submissions will be considered by the Regional Telecommunications Independent Review Committee, led by Dr Bill Glasson AO, who will deliver a comprehensive report to the Minister in August on ways to improve telecommunications in rural and remote areas of Australia."

Submissions should be addressed to remotebroadband@dbcde.gov.au and be received by 5.00pm AEST June 30.

In regard to the NBN RFP, a snapshot of issues of interest to ATUG includes:

1.1.9. As the NBN will be a vital communications platform for the future, the Government is determined to ensure that the long-term interests of end-users continue to be promoted as well as the efficiency and international competitiveness of the Australian telecommunications industry. As such, it will be important that appropriate open access arrangements are in place.

1.1.10. Proponents should submit arrangements for open access to their networks, including measures or models to ensure equivalence of access prices and non-price terms and conditions, and arrangements for allowing access seekers to differentiate their service offerings to customers.

1.1.14. The Australian Competition and Consumer Commission (ACCC) will provide ongoing advice to the Panel on pricing and competition issues, and will provide a written report to the Panel.

The Commonwealth’s objectives for the NBN are outlined in clause 1.3 from 1-18, including at 8, continues to promote the long-term interests of end users; at 9, a specified upgrade path; at 10, facilitates competition; at 11 enables low access prices that reflect underlying costs.

Competition and open access issues are covered in clause 1.5.14 - 1.5.23, including at 1.5.16:

"Open access arrangements should apply to wholesale services to be provided over the NBN, including upgrades of services, as specified in the contract for the NBN. In accordance with section 1.4 of Schedule 2, Proponents should submit their proposed arrangements for ensuring open access to the NBN, including measures or models to ensure that access is provided on equivalent price and non-price terms and conditions. If a Proponent proposes to supply both wholesale and retail services it should demonstrate what structural measures or models it proposes be put in place and maintained to prevent inappropriate self-preferential treatment and ensure that effective open access is achieved on the terms required by the Commonwealth."

This issue of structural measures is covered again in Schedule 2:

2.5 Ownership and Operational structure of the NBN
(a) Proponents should describe the proposed ownership and operational structure of the NBN. This should include:
• identifying each entity to be involved in the investment, establishment, and management of the NBN, including the Government’s role;
• any functional or structural separation of network ownership from wholesale and retail businesses; and
• exit arrangements for the Commonwealth and the Proponent from the NBN.

Proposed legislative and regulatory changes are covered at clauses 1.5.38 1.5.41 including at 1.5.39:

"Proponents should note that, to the extent that legislative and/or regulatory changes are required in relation to the development and operation of the NBN, these changes will be limited to those necessary to directly facilitate investment in the NBN, and will not jeopardise the Commonwealth’s other objectives including open access to the NBN and the achievement of interception, security and emergency call service objectives. Legislative and regulatory changes should also be consistent with Australia’s international obligations. Information on the regulatory obligations of carriers and carriage service providers is available here"

Part proposals may be considered: 9.3.1:

"The Commonwealth may consider stand-alone State or Territory-based Proposals where any such Proposal is assessed as assisting the Commonwealth to achieve an outcome which best satisfies the Commonwealth's stated evaluation criteria including its overall NBN Project objectives."

ATUG will analyse the RFP further from the perspective of the NBN’s impact on end users in discussions over coming weeks. We will look more closely at Evaluation of Proposals, covered in Section 10; the Role of the Panel of Experts outlined at 10.2 and the role of the ACCC outlined at 10.4.

ATUG is interested in members’ views – please email rosemary.sinclair@atug.org.au