Stephen Conroy (Victoria, Australian Labor Party, Deputy Leader of the Government in the Senate) Share this | Hansard source

The government does not support this amendment. The general rule is that the NBN Co. supply only carriers and carriage service providers. But NBN Co. can also supply to specified utilities for limited purposes. There are three reasons for permitting supply to utilities. First, under existing legislation, utilities can do things that otherwise make them carriers or carriage service providers without being classified as carriers and carriage service providers under the Telecommunications Act. The bill simply seeks to allow NBN Co. to treat them as carriers and carriage service providers when it comes to the supply of services. Second, these arrangements will support the growth of smart infrastructure management in Australia, including smart management of energy supply. I would have thought, Senator Birmingham, that you would have been very supportive of that. Third, it puts pressure on telcos to provide utilities with the services that they need.

The bill imposes tight limitations on the way the utilities use NBN Co. sourced services. They must use them for the sole purpose of carrying communications necessary to monitor and administer their own networks. Utilities cannot use these services to provide retail services to end users. To clarify this matter, the government has proposed its own amendment, which makes it clear that a utility cannot resupply a service that it has bought from NBN Co. Utilities and transport authorities will still need to purchase normal communications services, like telephony or broadband internet, from retail providers. Services that NBN Co. makes available to utilities should also be available to other carriers and carriage service providers and they could offer these to utilities if they wished.

This opposition amendment would deprive utilities of the benefits of arrangements that they have now, as well as undermining efforts to develop smart infrastructure and reducing incentives for carriers. That is why the government does not support it. Let me now go to the Senate committee report.