Linda Reynolds (WA, Liberal Party, Minister for Defence) Share this | Hansard source

The Telecommunications Legislation Amendment (Competition and Consumer) Bill 2019 and the Telecommunications (Regional Broadband Scheme) Charge Bill 2019 implement a comprehensive three-part package to improve the regulatory framework for the supply of high-speed broadband. These bills will significantly improve the provision of high-speed broadband in Australia through the following three measures: firstly, by making carrier separation rules for high-speed residential networks more effective but also more flexible, and giving carriers greater scope to invest in superfast networks and also to compete; secondly, by introducing new statutory infrastructure provider obligations on the NBN Co, and also others, to support the ongoing delivery of high-speed broadband services; and, thirdly, by establishing the Regional Broadband Scheme to provide transparent and equitable long-term funding for NBN Co satellite and fixed wireless networks that mainly serve our regional areas.

The government's historic telecommunications reform package ensures all Australians are able to participate and share in the social and economic benefits of one of our nation's largest infrastructure projects. Consumers will benefit from the statutory infrastructure provider measures, which ensure all Australians can access high-speed quality internet services. The rules set out baseline standards for these services: peak download speeds of at least 25 megabits per second and peak upload speeds of at least five megabits per second. These services also need to support voice communications on fixed line and also fixed wireless services.

In combination with the statutory infrastructure provider regime the Regional Broadband Scheme will provide the certainty that regional Australians want and deserve—that essential affordable broadband services will be available to them and will remain available to them in the future. The Regional Broadband Scheme will level the playing field by spreading the cost of Australia's investment in regional broadband services equitably across the NBN Co and also NBN compatible networks. It will do that by requiring all carriers to pay $7.10 per month for each premise on their network with a high-speed fixed line broadband service. The charge is capped at $7.10, indexed to CPI, to provide more regulatory and investment certainty but also to support market competition. The telecommunications reform package strengthens competition and it also seeks to ensure equitable access. The government's proposed amendments to the telecommunications legislation amendment bill would update the commencement of statutory infrastructure provider standards and rules in light of the passage of time. These instruments can be used to fine-tune the operation of the statutory infrastructure provider provisions.

The government's amendments to the Telecommunications Legislation Amendment (Competition and Consumer) Bill 2019 would also change the designated start date for the Regional Broadband Scheme to 1 January 2021, instead of 1 July, following royal assent. This recognises the impact of COVID-19 on the telecommunications industry, and it will also provide certainty to carriers and regulators about when their obligations under the scheme commence. The government accepts the amendments proposed by the opposition to the Regional Broadband Scheme on the basis that they will provide an opportunity for the ACCC to review the modelling for the scheme prior to its commencement and will also improve the transparency of public rollout information. The government's complementary amendment also makes sure that the ACCC will have access to current information from carriers as an input to its report. These amendments do not impact on the government's original policy intent for this legislation.

I also take this opportunity to respond on behalf of the government to the Senate Environment and Communications Legislation Committee's recommendations and the comments of the opposition senators, and I note that they recommended that the package be passed by the parliament. First of all, in relation to the issue raised on enhanced transparency of the NBN Co's funding arrangements, the government recognises the importance of providing a high level of transparency over the funding arrangements for NBN Co's fixed wireless and satellite networks and also of the NBN Co's expenditure on these networks. To this end, the bill contains a number of provisions to ensure transparency in the operation of the Regional Broadband Scheme and in the use of funds raised under the scheme by the NBN Co. Proposed new section 102ZB will impose mandatory annual public reporting requirements on the Australian Communications and Media Authority to report the total amount of charge payments received. There will also be electronic registers for the contracts and grants for the funding of fixed wireless broadband and satellite broadband, which will provide comprehensive details of the contracts and also the grants awarded under section 80.

The telecommunications legislation amendment bill also included the power for the secretary of the department to specify terms and conditions in the contract or grants to eligible funding recipients, such as NBN Co, established under section 80. Under section 87 the minister has the power to make rules by legislative instrument for the secretary to comply with in relation to the performance of their functions or the exercise of their powers. This could include requirements to improve transparency. These rules are also subject to parliamentary scrutiny and to disallowance. In the interest of further enhancing transparency of NBN Co's funding arrangements, in line with the committee's recommendation, the government also intends to use the existing provisions in section 87 of the bill to require NBN Co to provide ongoing public reporting on its expenditure on its fixed wireless and satellite networks. This will allow for increased scrutiny, by the parliament and by the Australian public, of expenditure by the NBN Co of moneys raised under the scheme.

Secondly, in relation to the comments on the Regional Broadband Scheme costings, the government does support updating the costings for the Regional Broadband Scheme. The government notes that the Telecommunications (Regional Broadband Scheme) Charges Bill 2019 requires the Australian Competition and Consumer Commission to review the charge at least once every five years and provide advice to the minister on the setting of charges for the Regional Broadband Scheme. The government would support requesting the ACCC to commence a broader review of the costings for the Regional Broadband Scheme soon after commencement of the scheme, with the aim of providing advice to the minister on the cost component of the charge.

Thirdly, in relation to the committee comment on the proposal to delay commencement of the Regional Broadband Scheme, the government does recognise that carriers need time to prepare to implement the Regional Broadband Scheme charge, given the impact of COVID-19 on the telecommunications industry. For this reason, the government is of the view that commencement of the scheme should be deferred by six months, as I've already stated, to 1 January next year.

Lastly, in relation to the comments recommending the government develop a road map for how the universal service obligation, or USO, and the Regional Broadband Scheme can be consolidated and harmonised over time. This is work that the government already has underway. In fact, the government's decision in 2017 to establish a universal service guarantee, or USG, which provides for the sustainable and legislated delivery of voice, payphone and broadband services across Australia for the first time, is actually all about integrating and guaranteeing these services over time.

In conclusion, the government has indicated it will continue to work with industry and consumers on the way to improve the USG over time. This remains our intention and this is what we are doing. The telecommunications reform package is a big win for consumers. That is why the bills are so strongly supported by consumer groups and regional stakeholders. That support includes the National Farmers' Federation, the Regional, Rural and Remote Communications Coalition, the Australian Communications Consumer Action Network, the Royal Flying Doctor Service, the National Rural Health Alliance and many other regional stakeholder groups. These bills are also a win for industry, with more opportunities for competition at both the network and the retail level.

On behalf of the Minister for Communications, Cyber Safety and the Arts and the government, I would like to thank members of the opposition and also the crossbench for their very constructive engagement throughout the process and for their support of these bills. These important reforms ensure that all Australians will have access to affordable, high-speed and quality internet services, which they need to fully participate in the digital society. I commend these bills to the Senate.