AUSTRALIA RANKS LAST OUT OF 36 OECD COUNTRIES ON ENTRY LEVEL BROADBAND AFFORDABILITY • Inbox.News

Wed, Aug 28, 2019 6:14 PM

5 years ago

AUSTRALIA RANKS LAST OUT OF 36 OECD COUNTRIES ON ENTRY LEVEL BROADBAND AFFORDABILITY

MICHELLE ROWLAND MP

Australia has ranked last out of 36 OECD countries on entry level fixed-broadband affordability, according to Point Topic data, Quarter 2 2019, compiled by the Parliamentary Library.

This concerning development follows scathing assessments by Infrastructure Australia and the ACCC Chairman about the multi-technology mix and its entry level pricing.

In August an Infrastructure Australia audit observed:

“The technology mix for the NBN has diversified, meaning different users will receive different types of connections. This change will deliver varied outcomes for users, and some may shoulder higher costs or receive lower-quality services.” (p. 588).

And in May the ACCC Chairman stated in a speech:

“Under the new pricing, the cost of accessing the NBN to supply a 12 megabit service has increased substantially and is now, amazingly, close to the cost to supply a 50 megabit service, with this gap likely to narrow further.”

The irony of these failures is it has left NBNCo feeling it has no choice but to desperately scour the country for large enterprises to connect with fibre, in order to mitigate the structural damage to its cash flow caused by the reliance on ageing copper and HFC.

An example of this is the $200 million NBNCo expects to incur on NBN maintenance capital in FY22. This amounts to nearly $8.30 per month for every active HFC user.

Given the concerns of the ACCC, consumer groups, and this recent Point Topic data, ensuring entry-level broadband prices are affordable should be a priority.

It’s time the Government stopped playing the role of a disingenuous bystander that is conveniently uninterested in the problems they have created, and instead demonstrated some leadership in addressing these challenges.

OECD countries: Australia’s ranking for entry level fixed broadband prices, Quarter 2, 2019

Source: Point Topic data, Communications Day Newsletter, page 3, 8 August 2019, compiled by Parliamentary Library