Government boosts bush broadband subsidy for ISPs

Stephen Withers
Wednesday, 02 July 2008 08:42

Business IT - Networking

Mandatory contract provisions imposed by the scheme generally work to the customer's benefit. For example, where alternative plans are offered, the customer always has the right to return to the original service, prices may not be increased during the three-year contract, and ISPs must maintain the customer premises equipment at no charge during the first 12 months.

Despite its aim, the guarantee does not cover all Australian residents. 'Grey nomads' spending their retirement driving round Australia are out, as "any mobile premises (for example, boat, caravan or bus) or a demountable or other temporary building that is not permanently located in a particular location" is excluded. There's probably a case to be made for delivering the same subsidy to these people as any other group that chooses to live outside heavily-populated areas. And there are other exclusions that we won't detail here.

Another problem with the scheme is that it provides a degree of lock-in. Generally speaking, a customer that has already benefited from the program will not receive another subsidy when changing ISPs unless the previously subsidised service is no longer available or is no longer "metro comparable", or where the customer has lost the customer premises equipment in "exceptional circumstances" and is unable to replace it.

The guidelines are crystal clear on one point: "Customers seeking to change Providers solely for the purpose of obtaining a lower price for a service are not entitled to a new Service under the Australian Broadband Guarantee."

So what are the maximum subsidies under the latest version of the guarantee, and when do the new rules kick in? Please turn to the last page for the answers.