Media Release

Senator the Hon Stephen Conroy
Minister for Broadband, Communications
and the Digital Economy

The Hon Lindsay Tanner MP
Minister for Finance and Deregulation

21/2010
11 May 2010

National Broadband Network

The Rudd Government is providing additional funding to deliver the National Broadband Network (NBN) that will boost productivity and transform Australian lives, improve education and health service delivery and connect cities, regional and rural centres across Australia.

The National Broadband Network – and the major productivity benefits it will bring – is a major part of the Rudd Government’s plans to strengthen our economy and secure Australia’s future.

The Government will provide $15.0 million over four years to 2013-14 for the continued support of the implementation of the NBN. Of this, $12.9 million will be provided to the Department of Broadband, Communications and the Digital Economy and $2.1 million to the Department of Finance and Deregulation. This investment will:

fund policy and regulatory support for the rollout;
provide for overseeing the contract with Nextgen Networks to construct the Regional Backbone Blackspots transmission links; and
manage the Government’s shareholding in NBN Co Ltd.

In addition, the Government will provide $24.0 million over five years to the Australian Competition and Consumer Commission (ACCC) to establish and administer the proposed regulatory arrangements for the National Broadband Network.

This measure will fund the ACCC’s regulatory oversight of NBN Co including for:

implementing specific access arrangements for NBN Co;
administering the NBN Co regulatory framework, including assessment of price and non-price terms and conditions for access;
providing advice to Government on relevant regulatory matters; and
undertaking regulatory reporting.

The cost of this measure will be fully recovered by the Australian Communications and Media Authority from annual carrier licence charges collected under the Telecommunications (Carrier Licence Charges) Act 1997.

The 2010-11 Budget also makes appropriate provision for the roll-out of NBN.

The Government will respond in the coming months to the NBN Implementation Study, which indicated the Government can expect to generate a rate of return on its equity investment sufficient to cover its cost of funds.

Media Contact:	Website:
Senator Conroy’s office - Suzie Brady - 0408 258 457	www.dbcde.gov.au
Minister Tanner's Office - Nardia Dazkiw, 0418 144 690	www.financeminister.gov.au