Australia Invites Public Comment on National Broadband Network Project

The Australian government today called for public comment on how its planned national broadband network (NGN) should operate, including issues of access, ownership and control of the network Dow Jones reports. Submissions are due by 30 July. The Labour government in April scrapped a tender process to build the network and instead plans to back the A$43-billion (US$34 billion) high-speed fibre-to-the-home (FTTH) network itself, with some investments from the private sector, as the global financial crisis dashed hopes of a single company completing the project. Communications Minister Stephen Conroy said it is important that, in laying the ground work for the single biggest national-building infrastructure in Australia's history, the government gets legislation governing the proposed national broadband network company right.

The government is planning to form a new company for the NGN roll out and operate the new company on a wholesale-only, open-access basis with oversight by competition watchdog the Australian Competition & Consumer Commission. It is asking for comment on how to achieve its goals, including how to set price and non-price terms for services, which services to offer, the nature of any private-sector ownership restrictions, arrangements for the government to ultimately sell its stake, and the role the ACCC should play in regulating the network. Telstra, SingTel's Australian unit Optus, and Canada's Axia NetMedia have indicated they are interested in participating in the NGN project, potentially by selling existing assets into the network in exchange for equity in the new company to be formed for undertaking the project.

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