More competition for broadband guarantee providers

Stuart Corner
Friday, 27 February 2009 01:16

IT Industry - Market

Communications minister Stephen Conroy has announced a new provider application round under the Australian Broadband Guarantee, and has told people affected by the Victorian fires and Queensland floods that the may be eligible for an ABG subsidised service.

There are currently 16 providers approved to offer subsidised fixed wireless or satellite services at prices comparable to metropolitan areas. Conroy gave no explanation for the planned expansion other than to say "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."

This will also mean stiffer competition for the existing providers who have already seen their addressable market shrink as the result of a decision by Conroy in January to qualify Optus 3G as a 'metro-comparable' service. Optus is upgrading its network to HSPA and said in September that it was on track to have 98 percent coverage by the end of 2008. ABG subsidised services are available only where metro-comparable services are not.

Also, Telstra has lodged an application to be a provider under the Australian Broadband Guarantee. With Telstra claiming Next G coverage of 99 percent of the population acceptance would mean that people living in remote Australia would have a choice between Next G and satellite for the subsidised broadband service, putting significant further competitive pressure on ABG suppliers.

Conroy also announced that "Any customer who has lost broadband service due to natural disaster, such as the recent fires in Victoria or floods in Queensland, may be eligible for the Australian Broadband Guarantee."

However this does not appear to signal any extension of the eligibility criteria. Conroy said: "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."