ID :
10370
Thu, 06/19/2008 - 18:31
Auther :
Shortlink :
https://oananews.org//node/10370
The shortlink copeid
Broadband cost blowout 'could hit bush'
Canberra, June 19 (AAP) - The federal opposition is warning regional internet users could pay higher prices than people in metropolitan areas under Labor's national broadband network plan.
Opposition communications spokesman Bruce Billson on Thursday questioned the accuracy of Labor's costing for the project, saying it is at odds with those of industry players like Telstra and Pipe Networks.
The federal government will contribute $4.7 billion to the construction of the network which, it says, will deliver high-speed internet services to 98 per cent of the population.
The winning bidder for the project - which will assume ownership of the network - is expected to make up the rest of the cost.
But the government and industry stakeholders vary widely in their cost estimates with Telstra having said the eventual price tag would be in the area of $15 billion.
The government has estimated the cost of building the network would be between $8 billion and $10 billion.
Mr Billson on Thursday warned the cost blowout could lead to people in regional and rural areas paying higher prices for broadband than those in metropolitan areas.
Telstra recently said it had estimated the cost of the rollout would be between $4.5 billion to $5 billion for the big cities - about 50 per cent of the population - while the other 50 per cent would cost twice as much to cover, Mr Billson said.
"In light of this, will the minister, (Stephen Conroy), concede his careful costings and detailed calculations were simply based on Telstra's original proposal, predominantly covering the capital cities and didn't even factor in rural and regional communities?
"He made this big statement that they'd carefully costed the network based on detailed calculations, including what was required to reach 98 per cent of the population.
"The detail that supports this proposal is probably what you'd write with a crayon on the back of an envelope."
A spokesman for Senator Conroy rejected the suggestion Labor's costing came up short.
Telstra had confirmed in writing last year that it supported the validity of Labor's costings, he said.
Mr Billson also accused Senator Conroy of holding up the network tender process.
Telstra - one of the confirmed bidders - has a virtual monopoly on existing network information which its rivals say they need to submit a detailed bid.
Last month, a bill was passed that would enable the government to force Telstra to provide the network information.
But Mr Billson said it appeared Telstra's rivals were still waiting for the network information.
"The minister was originally saying that he wanted to adopt a cooperative pathway for getting this material then unilaterally decided he needed the sledgehammer of the law," Mr Billson said.
"The opposition bent over backwards to accommodate Senator Conroy, because of the haste with which he wanted the bill passed, and now it's just sitting there dormant."
Opposition communications spokesman Bruce Billson on Thursday questioned the accuracy of Labor's costing for the project, saying it is at odds with those of industry players like Telstra and Pipe Networks.
The federal government will contribute $4.7 billion to the construction of the network which, it says, will deliver high-speed internet services to 98 per cent of the population.
The winning bidder for the project - which will assume ownership of the network - is expected to make up the rest of the cost.
But the government and industry stakeholders vary widely in their cost estimates with Telstra having said the eventual price tag would be in the area of $15 billion.
The government has estimated the cost of building the network would be between $8 billion and $10 billion.
Mr Billson on Thursday warned the cost blowout could lead to people in regional and rural areas paying higher prices for broadband than those in metropolitan areas.
Telstra recently said it had estimated the cost of the rollout would be between $4.5 billion to $5 billion for the big cities - about 50 per cent of the population - while the other 50 per cent would cost twice as much to cover, Mr Billson said.
"In light of this, will the minister, (Stephen Conroy), concede his careful costings and detailed calculations were simply based on Telstra's original proposal, predominantly covering the capital cities and didn't even factor in rural and regional communities?
"He made this big statement that they'd carefully costed the network based on detailed calculations, including what was required to reach 98 per cent of the population.
"The detail that supports this proposal is probably what you'd write with a crayon on the back of an envelope."
A spokesman for Senator Conroy rejected the suggestion Labor's costing came up short.
Telstra had confirmed in writing last year that it supported the validity of Labor's costings, he said.
Mr Billson also accused Senator Conroy of holding up the network tender process.
Telstra - one of the confirmed bidders - has a virtual monopoly on existing network information which its rivals say they need to submit a detailed bid.
Last month, a bill was passed that would enable the government to force Telstra to provide the network information.
But Mr Billson said it appeared Telstra's rivals were still waiting for the network information.
"The minister was originally saying that he wanted to adopt a cooperative pathway for getting this material then unilaterally decided he needed the sledgehammer of the law," Mr Billson said.
"The opposition bent over backwards to accommodate Senator Conroy, because of the haste with which he wanted the bill passed, and now it's just sitting there dormant."
