More ISPs invited to offer subsidised broadband

Stephen Withers
Thursday, 26 February 2009 10:04

Business IT - Networking

While we're waiting for a decision on who will build the National Broadband Network, the federal government has announced a new round under the Australian Broadband Guarantee scheme. And the minister has pointed out that people affected by recent natural disasters may qualify for a subsidy under the Guarantee.

The Australian Broadband Guarantee (ABG) provides a subsidy for ISPs offering fixed wireless or satellite services in areas where "metro-comparable" would not otherwise be available.

Metro-comparable is defined as "any service that offers a minimum 512kbps download and 128kbps upload data speed, 3GB per month data usage at a total cost of $2,500 (GST inclusive) over three years (including installation and connection fees)."

Currently, 16 ISPs participate in the ABG. The new round of applications will allow additional providers to provide subsidised broadband access.

"This new round of applications is an opportunity for additional providers to join the program and increase the consumer choice of subsidised metro-comparable broadband services," said Stephen Conroy, the Minister for Broadband, Communications and the Digital Economy.

Given that the scheme is designed to avoid overlap of terrestrial services receiving a subsidy, any increase in "consumer choice" is likely to be marginal.

The scheme allows Conroy's department to call for applications from ISPs at any time.

The National Broadband Network is intended to provide fast broadband services to 98 percent of the population. The government expects to continue the ABG to support the remaining two percent.

Conroy also took the opportunity to point out that people who lose their broadband service as a result of a natural disaster - such as the recent bushfires in Victoria and the floods in Queensland - may be eligible for a subsidy under the ABG.

The floods and fires have played havoc with communications infrastructure in some areas. While both fixed and wireless services are affected, it is likely that it will take longer to fully restore wireline services.

"I encourage people impacted by natural disaster to register to establish eligibility using the Broadband Service Locator on the Department’s website, or contact the Department’s consumer enquiry line on free call 1800 883 488," said Conroy.