News Detail
News Archive >> Rudd Government today announced the new super fast National Broadband Network
Details
The Rudd Government today announced the establishment of a new company to build and operate a new super fast National Broadband Network.
This new National Broadband Network will:
- Connect 90 percent of all Australian homes, schools and workplaces with broadband services with speeds up to 100 megabits per second—100 times faster than those currently used by many households and businesses
- Connect all other premises in Australia with next generation wireless and satellite technologies that will deliver broadband speeds of 12 megabits per second
- Directly support up to 25,000 local jobs every year, on average, over the 8 year life of the project.
Under the Rudd Government's new national broadband network every house, school and business in Australia will get access to affordable fast broadband.
OWNERSHIP AND FINANCING
The Rudd Government's National Broadband Network will be built and operated by a new company specifically established by the Australian Government to carry out this project.
The Government will be the majority shareholder of this company, but significant private sector investment in the company is anticipated.
The Government will make an initial investment in this company but intends to sell down its interest in the company within 5 years after the network is built and fully operational, consistent with market conditions, and national and identity security considerations.
This company jointly owned by the Government and the private sector will invest up to $43 billion over 8 years to build the national broadband network.
The Government's investment in the company will be funded through the Building Australia Fund and the issuance of Aussie Infrastructure Bonds (AIBs), which will provide an opportunity for households and institutions to invest in the national broadband network.
The new investment is also the biggest reform in telecommunications in two decades because it delivers separation between the infrastructure provider and retail service providers. This means better and fairer infrastructure access for service providers, greater retail competition, and better services for families and businesses.
This announcement follows the Government's decision to terminate the NBN Request for Proposals (RFP) process on the basis of advice from the independent Panel of Experts that none of the national proposals offered value for money. The Panel noted the rapid deterioration of the global economy had a significant impact on the process.
This historic nation-building investment will help transform the Australian economy and create the jobs and businesses of the 21st century.
Every person and business in Australia, no-matter where they are located, will have access to affordable, fast broadband at their fingertips.
Date
Tuesday 07 Apr 2009 - Wednesday 07 Apr 2010
