New law would guarantee 25 Mbps broadband

The government has introduced new legislation that would require wholesale broadband providers including nbn co to guarantee broadband speeds of at least 25 Mbps to every premise in the country, even those within the wireless and satellite footprint.

The proposed Telecommunications Reform Package would introduce new Statutory Infrastructure Provider (SIP) obligations to offer a standard wholesale broadband service supporting peak speeds of at least 25 Mbps download and 5 Mbps upload, and to support voice calls on fixed and wireless networks.

Under the legislation, nbn co would be the SIP for each premise passed as the network is rolled out. Once the nbn is fully rolled out, the obligation would apply across Australia. Other providers will be SIPs where appropriate, such as in new developments.

The Australian Communications Consumer Action Network (ACCAN) noted that the draft legislation introduced in December last year would have originally excluded the satellite and fixed wireless components of the nbn from the obligations, and welcomed the change in the final legislation.

“The legislation includes big wins for all consumers, especially for regional, rural and remote consumers,” ACCAN CEO Teresa Corbin said.

“Broadband services are essential for consumers, yet currently, there is no requirement on nbn to connect and provide ongoing services to all premises. We are pleased that consumers can now be reassured that under the proposed legislation all premises must be able to access a broadband network capable of a minimum peak speed of 25 Mbps download and 5 Mbps upload.”

But she added that ACCAN will also be seeking to ensure that public phones will be provided where needed and that consumers relying on satellite services have access to reliable telephony and broadband services.

The new reform package also contains the provisions for the proposed Regional Broadband Scheme (RBS) levy of at least $7.10 per connection in urban areas.

This levy will be used to compensate for the expected cost of providing broadband services to remote and regional Australia via the satellite and fixed wireless components respectively of the nbn, estimated to be $9.8 billion over 30 years.

Announcing the changes, Minister for Communications Mitch Fifield said the RBS is already built into existing nbn broadband prices, and that once the RBS is established, nbn co is expected to pay 95% of the cost of the RBS, with the remaining 5% borne by nbn-competing wholesale providers.

Finally, the reforms include proposed changes to separation rules designed to ensure fast broadband providers compete on a level playing field.

The changes would allow providers to operate wholesale and retail businesses on a functionally separated basis, instead of requiring full structural separation, and also remove separation requirements for networks providing services for small businesses.

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