Coonan moves to reassure angry ISPs

COMMUNICATIONS Minister Helen Coonan has moved to bolster government’s Broadband Guarantee scheme to make sure smaller, regional ISPs don’t miss out on subsidies.

The changes follow complaints by South Australian regional ISPs that had complained that they had already invested in regional infrastructure but would have been denied access to funding under the new scheme.

“These arrangements will give broadband providers clarity regarding the new program and should speed up the rollout of further high speed broadband to consumers to complement the upcoming $600 million Broadband Connect Infrastructure Program,” Senator Coonan said.

Under new guideline announced by the Minister last week, providers that had built broadband infrastructure under the Broadband Connect program but had not claimed subsidies for connecting customers under that program will be able to apply to register that infrastructure under both the transitional period – up until July 2007 – and the full Australian Broadband Guarantee program to mid June 2008.

This change creates an incentive for providers in these circumstances to immediately participate in the Australian Broadband Guarantee rather than waiting for the full program, Senator Coonan announced.

This should mean that consumers in these areas will receive a wider choice of broadband services sooner. It will also allow further time for providers to recoup their investment on new networks.

The incentive payment for non-ADSL broadband services will be increased from $1100 to $2750 for Providers who build new infrastructure in areas that will not be covered by projects funded under the Broadband Connect Infrastructure Program.
Further details of the arrangements are included in the attached industry fact sheet. Full details will be made available in the coming weeks with the release of the full Australian Broadband Guarantee Guidelines and amendments to the transitional period Guidelines.

“These new provisions ensure that consumers are not disadvantaged as a result of new broadband networks being caught between the two phases of the Australian Broadband Guarantee,” Senator Coonan said.

“We particularly wanted to ensure that a number of important projects in South Australia were properly accommodated under the program,” she said.

The changes announced this week follow a complaint by South Australian science and IT Minister Paul Caica, who met with Senator Coonan in a bid to save eight state-funded wireless projects that had been put at risk by changes federal funding.

Senator Coonan confirmed that projects in the Coorong Region, the Yorke Peninsula and the Barossa & Light Region would be eligible to apply for funding under the Australian Broadband Guarantee.

Other regional projects in areas that will not be covered by the Broadband Connect Infrastructure Program are likely to benefit from the higher subsidies for wireless broadband.

Guidelines for the full Broadband Guarantee program are expected to be announced by the end of the month.

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Feds tip another $162m into broadband

COMMUNICATIONS Minister Helen Coonan has found an additional $162.5 million in funding to plug a potentially embarrassing gap between two Federal broadband schemes.

The so-called Australian Broadband Guarantee effectively extends the per-subscriber funding for carriers that has been used in existing schemes like HiBIS (higher bandwidth incentive scheme) and Metropolitan Broadband Blackspots.

Funding under HiBIS was due to expire mid-year. The Guarantee would assist the smooth transition to the $600 million Broadband Connect program that will subsidise the roll-out of next generation infrastructure in rural, regional and remote areas.

“Broadband is an essential service for both individuals and business and is vital for Australia's future economic prosperity,” Senator Coonan said.

“The Australian Government has already provided substantial funding that has seen over 205,000 homes and businesses get a subsidised high quality broadband service and an additional one million premises gain access to broadband services,” she said.

“The Australian Broadband Guarantee will provide universal broadband for all Australians.

“Anyone unable to gain a reasonable level of broadband service at their principal place of residence or small business will receive a subsidised broadband service. It's as simple as that.”

The first phase of the Guarantee will run until June 2008 when the funds from the Government's $2 billion Communications Fund will come on stream.

This will enable the Government to continue the Australian Broadband Guarantee for as long as in necessary to ensure all Australians have access to broadband regardless of where they live.

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