Broadband war of words heats up

By Stuart Corner
Sunday, 25 March 2007 18:27

Opinion and Analysis

Australia's broadband future is shaping up to be one of the major agenda items for the next federal election, with the debating showing no signs of abating in the wake of the ALP's announcement of its plan to fund a nationwide FTTN network with money from the future fund.

In the latest development the Government has conjured out of nowhere the prospect of better network than that proposed by the ALP being built sooner and with no government money whatsoever.

The ALP has promised to facilitate the creation of an FTTN network that wil deliver broadband of at least 12MBps to 98 percent of the population within five years. It estimates that this will cost around $8-$9 billion and is proposing to put $4.7 billion of government money into the project if elected. $2 billion would come from money allocated by the current government to broadband incentive schemes and, very controversially, $2.7 million from the Future Fund by selling the 17 percent of Telstra shares which it presently holds.

The government is looking increasing back-footed on the issue: since it was announced communications minister, senator Helen Coonan has issued three press releases containing in some cases blatant inaccuracies and she now claims that under the Coalition Government there is every chance of a better outcome:  a prospect to which she has made no prior reference.

Coonan told ABC Television today 25 March that: "I think that the prospects are reasonable that there will be an opportunity for a provider or a group of providers to be able to roll out a fast fibre network very soon - much earlier than Labor's could - within three years to the capital cities and then to a much broader regional footprint...That's what I'm working on and that's what I expect to be able to deliver, and without a $5.7 billion (sic) injection from public funds."