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Tonight today at the National

Broadband, Communications and Press Club, the Minister for

the Digital Economy, Conroy.

Labor's election pitch included

a plan to build a national

broadband network. I will now

be delivered by a government

company that has to find $43

billion. Senator Conroy will

detail the plan in today's

National Press Club address.

Ladies and gentlemen,

welcome to the National Press

Club and today's National

Australia Bank address. It is a

pleasure today to welcome back

Stephen Conroy who is now the Minister for Broadband,

Economy. Until we were Communications and the Digital

overtaken a few months ago by the global financial crisis,

there was no bigger ticket item

on the Government's agenda and

therefore on the Minister's

than the national broadband

network. That project is now

moving a-Ned a rather different

form than we first expected but

moving it is and only last week

the Minister announced a plan

to fast-track its delivery to

regional Australia. Fast

broadband will make a huge

difference to those areas in

all sorts of ways. And in

others of course. But curiously

many people still think about

it and refer to it as just faster enterin. It's much more

than that and I hope that after you hear Stephen Conroy today

you will realise some of those implication. Please welcome

Stephen Conroy.

Thank you, Ken, and thank

you all and good afternoon. It

is a pleasure to be back at the

forum where we actually

launched Labor's broadband plan

just a few years ago and I am

pleased to say I've got not

caused my good friend Morris

Reilly any grey hair only

turning up 30 seconds before

broadcast time, as I did last

time. ! But when our leaders

were contemplating the rollout

of electricity in the 19th

century, few would have

foreseen the profound impact it

has had an our economy over the

past 150 years. When in 1894

most of Melbourne's streets

were brightend by electricity

from Australia's first power

station, few could have known

the full extent of the

innovation that would follow.

Since then, we have seen the

advent of refrigeration, automated production lines and

electronic media. New

industries have flourished and

services have been shaped in

some way by electricity. It has

driven new market efficiencies,

productivity and jobs. This

technology has fundamentally

changed Australia. For this we

can thank the vision of previous governments,

governments that ensured that

Australia kept pace with the

world and we reaped the

rewards. Our past leaders

ensured we have had access to

enabling technology offering opportunity beyond their

original intentions.

Electricity has transformed

lives and delivered benefits

across the whole economy. Today

we are discussing the

implementation of new enabling

technologies. Just as

electricity has changed the way

we lived our life over the past

100 years, digital technology

also have unfold influence on

our lives for the next

century. The Rudd Government is

not alone in our recognition of

the profound potential of

digital technologies. Digital

technologies or information and

communications technologies as

they're more commonly known,

offer massive opportunities to

improve the quality of life, to

drive market efficiency s and

productivity, and to create

jobs today and the jobs for the

future. Intel, the giant

digital system s maker recently

announce ad 7 billion

investment over the next two

years to build advanced

manufacturing plants in the

United States. And CEO Craig

Barret is of the view that the

world should innovate and invest its way out of the

global recession. Innovation

and - innovation and technology

are the back bone of the modern

economy, he says. United

Nations secretary General Ban

Ki-moon has outlined a vision

to drive ICT to help the global

economic recovery. He said

recently information and

communication technologies are

increasingly critical for

global developments and human

well being. We must not allow

today's economic downturn to

slow progress in providing

widespread access to these

essential tools. Digital

technologies will transform

health care. Digital

technologies will revolution

ise education. Digital

technologies will underpin our

future carbon constrained

economy. And digital

technologies will secure our


investments. While electricity has supported the first phase

of growth for digital

technology, the next phase and

the new industrial era we are

beginning requires a new platform. We live in a world

where homes and advertises -

businesses are now commonly

connected by viea the Internet.

Many basic services are now

provided online and digital

communication tools have in

part superseded traditional

phone calls. In commentary

since our national broadband

network announce ment I've seen

seem saying ms, including my

political opponent, that this

is just about downloading

movies faster. This completely

misses the point that broadband

infrastructure will be the

platform upon which the economy

operates in the 21st century.

It is the equivalent of someone

in the 19 th century saying

that the widespread

introduction of electricity is

jurs about having a better

light to read in bed at night.

We should not be surprised that

the Opposition fails to grasp

the pornt importance of that

nation building initiative.

Afterall, they failed to

undertake critical

infrastructure investment for

12 long years weefrmt investing

in our nation's future in

difficult times. Our political

opponent s remaiven the party

of the past, not the future. The connected to

society is now a reality. Next,

is the connected economy and

broadband is the vital enabler

for this environment. Of course

broadband will allow us to

improve many of the things we

already do today. For instance

Mark Scott as the ABC points

out that high speed broadband

allows way for media operators

to enhance service and better

meets the needs of audience.

The ABC sees broadband as a way

to distribute text, audio, and

video and to host audience

contributions and create local

communities of interest.

Likewise, business sees

broadband as major driver of

efficiency in the transfer of

file a basic online function

and one we mostly take frag. In

2 2008, the Australian Industry

Group, they named the ability

to download fail files quickly

as THE most important aspect as

well as cuttinging financial

transaction. Whether it's the

small town geographic designer

on the Yorke Peninsula intaping

sphiels with Perth, or a pay

roll officer managing files

across the country, broadband

means quicker and more

efficient operation. The

President of one of France's

major plfrers is prophetic. He

said, "In the future, all

manufactured goods in the world

will be digitally defined,

engineered, simulated, produced

and managed throughout their

life cycle." Simply from a

transportation perspective,

digital tracking technology is

already assisting manufacturers

by allowing intimate control of

the distribution chain. But

leading thinkers in the space

acknowledge that as was the

case with electricity that

broadband will spur innovation

far beyond what we can imagine

today. In turn this innovation

will spur new use and revenue

generating traffic for the

national broadband

network. Indeed, one respected industry commentator has

predicted future services to

account for the vast majority

of future broadband revenues.

Pak net, one of the largest

providers of connectivity in

Asia has predicted that video-based applications for

business, social services and

consumers will comprise more

than 95% of all broadband data

in the years to come -

95%! These new services and

applications will drive

business productivity and

efficiency across the economy.

This is why the Rudd Government

is driving forward with

investments in the private

sector in the national

broadband network. Take climate

change - Australia has set

ambitious targets to reduce

combon emissions by 2020 and

this will require an

economy-wide response. Some

have said why invest in

broadband when we need

investment in green technology.

The fact is that broadband is a

green technology. In fact, it

is an enabler of efficiency s

that could drive major

reductions in carbon

emissions. In the energy

sector, providers plan to use

broadband to improve the way

they monitor and manage power distribution. Using broadband

to connect power consumers with

PowerGenerators allows them to

harness waying to make

distribution more efficient and

reliable. Smart grids connected

by broadband raise the

potential to not only monitor

energy use but to allow remote

adjustment of lights, or temperatures. For households,

this means opportunities for

reduced power consumption and

koszs. Remote control of

connected appliances,

thermostats and electric meters

will help emergency companies

balance the peaks an troughs of

daily usage. This in turn

alouse them to sell the power

on the market, reducing the

need for new PowerGen erators. For

the country it means the very

real possibility of significant

carbon emission reducks. In

Australia and elsewhere

providers will already testing

smart grid networks.Est mates

in the vus put the cost savings

to consumers between 5 and 25%.

One couple early adopterses of

a pilot smart grid in mai yimy

claim they are saving $100 a

month by keeping an eye on

their digital energy metre.

This information allows them to

understand household consumption trends and to

adjust their habit s

accordingly. The fine tore the

home council commissioned Price Waterhouse coopers to research

the potential sustainability

benefits of broadband. Based on

account of 20 million FTTH

users in Europe with 10% of the

population telly markers three

days a week by 2010 it

estimates greenhouse gas

emissions savings per user of

330 kilogram, equivalent to a

car travelling 2,000 kilometres. Research also shows that improving

telecommunications use could

result in significant save ing

s for Australia. In fact,

climate risk has estimated that

local energy and travel savings

alone could be worth up to $6.6

billion annual ly. It noted a

number of major opportunity

force communications to improve

energy efficiency, including

remote appliance, power management, decentralised

business district, real-time

freight manage, high definition

video conferencesing and these

are exactly the kind of

applications that will be

enabled via the national

broadband network. In health

and aged care, the

opportunities are just as

profound. Already we are

starting to see the benefits of

remote diagnosis and care. Connecting parents in

regional hospitalings with

specialists in capital cities.

Broadband tools are providing

vital emotional welfare for

young patients, bed ridden and

separated from family and

friends. Late last year at

Canberra Hospital, I met with

young patients who spoke of

emerging broadband applications

providing a vital social

Lifeline and support by

connecting them to people

facing similar charges. Broadband supporting online

file sharing and records access

is helping regional doctors to

become more efficient. It is

also providing access to

training Andriy sources to

hospital staff a - and resources to hospital staff

across the country. But as our

population continues to age and

governments work to deal with a

stressed hospital system,

broadband will become an even

more vital piece of the health

care solution. In-home care has

been vied tied as a -

identified as a key way to deal

with the challenge of an ageing

population that expects

independence. The same

PricewaterhouseCoopers study I

mentioned earlier estimate s

that 20% of the population over

75 years old would benefit from

an in-home assistance

porspoiredded by broadband. AMA

Federal President says that the

range of medical services that

can be delivered remotely will

increase as technology improve

s in coming years. Broadband is

the vital mechanism to support

this. Studies have shown that

remote patient monitoring could

reduce emergency room visits by

up to 40%, and length of

hospital stays by up to 60%. The significance of these

figures should not be

underestimated. Indeed the

national E health strategy

developed in December 2008 and endorsed by the Australian Health Ministers conference

placed E health at the party of

our future health care system.

It recognises e health as an

enabler and driver of improved

health outcomes. At least one

industry commentator has

suggested that health care

applications alone could

consume an entire quarter of

the capacity of the national

broadband network. The

potential for the education

sector will be just as great. It will certainly

contribute in the same way to

bridge the divide between

metropolitan and regional

services. The national

broadband network will underpin

the Government's digital

education revolution. It will

support new learning and

teaching practices and help

prepare students for further

education, training and life in

a digital world. Excuse me. It will support virtual

classrooms, video and audio

streaming and high definition

video conference ing, helping

students an teachers to work

together. It will provide

gateways for students to

interact with peers and

teachers in schools across

Australia and around the

world. It will provide teachers

with the tools and support they

need for the development, use and sharing of learning

resource. But this is not just

about schools. Indeed, for

everyone in the community

seeking to further their

education, broadband will

provide that opportunity. As

the ABC has demonstrated with

its glibly, the first day

project launched for Anzac Day,

broadband makes history

accessible in new ways to new

audience. Universities also

operate major distance learning

operations over the Internet

and will ultimately stream

lectures and interactive

tutiorials across

boernd. High-speed broadband is

also an important platform for

Australia's research

community. Already, project s

such as the super high

resolution opity portial

visualisation project Lynching

Australian and Californian

universities are driving huge

new demavend for band width.

Supplying that demand by the

national broadband network will

help advance Australia's

scientific endeavours. In the

vocational sector, broadband

will support foundation skills,

training such as language,

literacy and numeracy. The national broadband network

means that training for these

skills and others will be

available in regional Australia

and other areas where the un

employed are keen to gain a new edge. The national broadband

network is an essential

requirement for a comprehensive

digital education environment

and approved opportunities for Australian students and

teachers. It will break down barriers providing benefits for

students, teachers, parents and

other members of the community,

regardless of where they live

or which school they go

to. Broadband will also play an

increasing role when it comes

to managing assets and

infrastructure. As I've

mentioned, smart grids have a

massive potential to improve

the efficiency of building

power consumption. Assist the

remote control of lighting, air

conditioning and computing

systems. But broadband provides

other powerful and persuasive

opportunities to improve the

economics of our investment in

infrastructure. Very smart, the

physicist and Internet

architect points out that

broadband and Internet

technology also reshape the way

we think about infrastructure management. Smart

infrastructure, he says, will

result in savings for everyone.

Digital technologies linked by

a broadband will improve the

way assets are planned,

constructed and maintained.

Smart infrastructure will be

equipped with sensor technology

to detect movement and deterioration. The information

will be monitored constantly,

providing better timed and

targeted responses. It means

better and more informed

decisions can be made about

safety and maintenance. This is clearly demonstrated in the

example of the St Anthony Falls

Bridge which collapse into the

miss - Mississippi river. The

replacement bridge incorporates

thousands of sensors to monitor

load and weather conditions and

to ensure there is no repeat

collapse. The sensor also also

help reduce maintenance

cost. Smart infrastructure

means longer lasting

constructions, more efficient

resource management and a

better return on investments. Our own research

entity, the national ICT

Australia or NICTA as it's

referred to is making smart

water supply information. Their

project uses sensor networks to

monitor and control canal systems. This in turn makes

water usage more efficient. In

water field trials on dairy

farm, NICTA demonstrate add 27%

improvement in water

productivity. The benefits of

this innovation particularly in

arid areas of the country and

globe are obvious. It

highlights the far reaching

potential of using broadband to

make infrastructure smarter and

to drive better out comes. As

I've described, broadband

presents massive scope to drive

improvements and new innovation

across the economy. It also

presents opportunities for

small business, tapping into

the rollout of the network as

well as taking advantage of the

opportunities for in-Joevation

that flow from faster

broadband. These examples help

highlight the potential

opportunities for jobs and businesses, for productivity

growth and improved standards

of living presented by the

national broadband

network. Indeed, there is a

growing body of work establish

ing broadband as a vital

platform for future economic

prosperity. Research conducted

by the European Commission

shows the massive potential for

broadband to drive growth. The

research found that broadband

led to significant improvements

in labour creation and

productivity. The 2008 impact

of broadband on growth and

product report found that

broadband led to the creation

of 105,000 new jobs in Europe

in 2006 alone. Broadband drove

productivity growth up an

average 5% in the manufacturing

sector. In services sector,

average product growth was as

high as 10%. In Australia,

Access Economics found that a

national high-speed broadband

network will also positive ly

impact our economic

performance. It points to the

benefits of improved

organisation to the

introduction of new services,

better communication and

enhanced choice and convenience

for consume evers. Access Economics predicts that a

national high-speed broadband

network would mean an economic wide productivity growth would

be 1.1% higher after 10 years

compared to if the network was

not built. Access Economics

views this as a conservative

estimate and I understand they

have another report comes out

later this week, which I think

will again support the

economy-wide benefit argument.

Another report by the Centre

for international Economic s in

November 2008 said broadband

could lift national economic

output by 1.4% after five six

years. This was equivalent to

$15 billion in GDP in 2007-08.

Compare this to the GST. Which is championed by the Howard

Government on the basis of

evidence that it would add to

GDP growth by 0.5%. GST 0.5%,

broadband 1.4%. These figures

are based on the availability

of national high speed

broadband infrastructure and

highlight the economic case for

the Government's strong

commitments in this area. The

Rudd Government's investment in

high-speed broadband are intend

ed to unleash Australia's

digital potential, to create

jobs and drive productivity

today and into the future, to

create new efficiencyies and

sustainability, to improve the

availability of emerging

service and application and to position Australia to take

advantage of the global

recovery when it comes. Of

course on April 7 we announced

that the Government will invest

with the private sector to

build the new national broadband network. Addition

ally, we will consider a range

of regulatory reforms to improve competition and service

during the rollout period. The

national broadband network will

be the single largest nation

building infrastructure project

in Australia's history. FTTP

will connect 90% of all

Australian homes, schools and

workplace s with broadband

services with speeds up to 100

times faster than those

currently used by many

households and

households and businesses. The

network will connect all of the

premises in Australia with next

generation wireless and satellite technologies that

will deliver our election

commitment of speeds of 12 meg

per second. This actually

exceeds our election commitment

by ensuring that high speed

broadband for all Australians,

no matter where they choose to

live or work. Importantly, the

national broadband network will

support up to 25,000 local jobs

every year, on average, over

the 8-year life of the project

- 25,000 jobs. This figure will

peak at 37,000 jobs, 37,000

people digging the ditch,

running the fibres, planning

and engineering, connecting

homes and offices, creating and

supplying network hardware and

other associated jobs. The

investment is expected to

generate additional economic

activity of over 37 billion

dollars. Over the life of the

project. Since our announcement

earlier this month, the

Government has prove f moved

swiftly to implementation. The national broadband network

company has been blairnd I note

states are jostling to host its

headquarters. The Government

will soon announce the

appointment of a search firm to

assist in the selection of the

broerpd around chief executive

of the company. Negotiations are negotiating with the Tasmanian Government to commence an early rollout of

the FTTP network and next generation wireless in Tasmania

by July. We have commenced

consultation on our 250 million

dollar priority broadband back

haul investment for regional

Australia. Following the close

for submissions to the

consultation in early May, we

will begin a competitive tender

process for the back haul

rollout. Construction on this

process is expected to begin as

soon as September. Last weekend

we advertised for the appoint

ment of a lead adviser for the

implement ation study process.

This adviser will report on the

operating arrangements for the

national broadband network

company by 2010. In addition

the first legislation required

to underpin the national

broadband network will be

introduced in the winter

sittings. This includes a bill

to require greenfields

developments to use FPP - FTTP

technology from 1 July 2010 and

for the Government to acquire

information needed to assist in

the design of the FTTP rollout.

First, legislation has started

on making the existing

legislative framework work more effectively, with legislation

to be introduced before tends

of the year. We need to be

moving quickly to regress this

project. Australia should not

be left behind the rest of the

world on high-speed broadband.

We can't afford to be left

behind. The FTTH council says

there's 13 million FTTH

connected homes in Japan, 6

million in the US, a similar

number no China and about 2

million in Europe. Some 78% of

all global fine tore the home

connections are located in the

Asia Pacific region and

Australia must ensure that it

keeps pace by joining that

community. There is common

recognition that fibre is the

end game when it comes to

broadband deployment. Our

rollout will start at 100 mg

but once fibres is distributed

future hardware upgrades can

boost speeds to 1,000 mg and

beyond. Unfortunately our telco

sector to date has not shown

science it can achieve the

quantum leap we require.

Australia is in the bottom half

of OECD countries for broadband

take-up, 16 out of 30 in 2008.

Australians pay more for

broadband than those OECD

country, 20 out of 29 in 2 2007

and Australian businesses may

more than all but two other

count froirs fixed line

service. The Internet industry

soerkts representing

Australia's entire broefrnd sector recognised the need for

Australia to take a jump into

the future. In 2006, it called

for a national building

approach to boernd and set

bench mark force 80% of the

population having access to 10

mg and 67% having access to 74

mg or faster by 2010. I note

there have been strong comments

from industry about the appeal

of this new investment

opportunity. Investing in FTTP

broadband today puts Australia

among world leaders such as

Japan, Singapore, New Zealand,

Korea and Malaysia, all driving

the rollout of fibre-based services. The broadband at

this time makes good sense. It

also means vital infrastructure

to support our growth and

prosperity in the future. Since

our annoyancements there have

been some wild claims that

consumers will have to pay over

200 dollars month in order to

make the national broadband

network viable. Let me take

this opportunity to dispel a

few myths. The NBN will be

Australia's first truly

national whole sale only

network, no retail company will

be able to control the network

in its own interests. Why is

this important for consumers

and the and the price they will

pay? Because the dismin of

competition will put pressure

and the market will drive

innovation and greater choice

of different service and price

points. I means companies will

have to fight hard to win and

retain jour business or else

you can switch operators. It

means companies will likely

offer a range of plans and

price points to suit the needs

of different individuals and

businesses, competition drives

better out comes for

consumers. Industry players and commentators expect the

national broadband network to stimulate competition and

support affordable prices. Matt

Healy from quaurk Telecom says

ultimate ly customer will be

the winner as consumers and

businesses will have a broader

range of services to choose

from at lower prices. Rose

mayor sin Clare dismissed the

idea of an NBN costing several

hundred dollar s a month as

financeful nonsense and

according to Optus . In

February this year enternode

announced it would be

delivering FTTP in greenfields

developments and offer ing 50

ml for $50 and 100 mg for

$100. This compares to

Telstra's plans for 120 mg from

$100 to $150 a month. The NBN

will turbo charge the

competitive pressures in the

Telecom sector to unprecedented

levels. Conslurms be the

ultimate winner. No consumer or

business will be forced to pay

for anything for services on

the NBN. But clearly

affordability is an important

factor to drive take-up. NBN

prices cannot be sfrured

without having careful regard

to the prices people pay today

for comparable service. That

said, as I've also discussed

today, the NBN will open up

opportunity force the delivery

of a whole new range of new

revenue generate ing measures.

Much of the commentary seems to

dig nowhere these poecialts and

social revenue streams. The

implementation study would gave

careful regard to pricing

levels on the naciald broadband

network. What is the national experience? Evidence from

countries rolling out FTTP

networks is that investment in

whole sale systems leads to

lower, not higher, prices for

comparable services. In

Singapore where the

Government's facilitating a

nationalwide FTTP rollout,

prices for high speed broadband

are reported to be $15 lower

than for compar pable services

on the existing copper and

cable service. In France where

FTTP is being rolled out, the

network operator is offering an

aggressive enterprise for a

triple bundle price of 100 mgs

for $600. The evidence also

suggests that consume kers pick

and choose from a range of

options and price points fr,

low to high end, to suit their

own particular needs. This does

not suggest that NBN investment

also lead to outrageously

increased prices for yiers.

Rather it suggests FTTP

operators have developed

targeted offerings that will

appeal to a wide range of

consumers and businesses. In

the commentary following our

national broadband network

announcements most have grasped

the national building scale of

this historic project. The

national broadband network will

be the core infrastructure of

the digital economy stlout

coming century. As the Prime

Minister has noted, it is the

most ambitious, far reaching

and long-term nation building infrastructure project ever

undertaken by an Australian

Government. It is bigger than

building of the Snowy hydro

scheme. What has been policed

by many, however, is that it is

also represent s an historic

micro economic reform. The

national broadband network will

be a national wholesale only

open access network and that

will be lethd. The whole sale

network will not be controlled

by any company that offers

retail service over it. Genuine

competition in the Australian

telco sector has been stifled

by the failure of previous

Governments to put in place

structural arrangements to

allow all carriers to compete

on fair terms. The Howard Government privatised Telstra

without ever resolving this

conflict. Of a vertically and horizontally incumbent owning

the network infrastructure and dominating the retail

market. This was despite

Productivity Commission advice

that structural issues needed

to be addressed prior to

privatisation. The national

broadband network finally

resolves this conflict. Once

and for all because it delivers

separation between the

infrastructure provider and

retail service providers. This

decision will transform the

competitive dynamics of the

telco sector. Households and

businesses will benefit as open

access for service provider

also drive retail competition

and lead to better services and

Mourinhovation. The Hilmer

competition re forms introduced

by the Keating Government in

1995 turbo charged productivity

growth and enhanced competition

across the economy for a

decade. Like these reforms the

national broadband network will

support our future productivity

growth and our global

competitive spending for the

years ahead. So broadband, like

electricity in this century

past, has the potential to

drive innovation, pructdivity,

efficiency and employment

across the economy. It will

over time influence every

activity and process throughout

our daily live us. Broadband

will transform health kai, it

will rev lution ise education,

it will underpin our future

carbon economy it will secure

our infrastructure assets. It

will be support services that

we cannot beg dwroin imagine

today. Father for the first

time it will be delivered a

genuine delivery plat fofrmt it

is our obligation to ensure that these opportunities are available to future generations

of Australians. Thank you very much.


Thank you very much,

Minister. As you might expect

there's a few questions from

our media members. The first is

from Nicola. Nicola from the

'Australian' newspaper.

Minister, I am wondering if you

can outline for tus recruitment

process for finding the board

and the chief executive of the

new NBN corporation and I am

wondering if we can expect the

types of salaries that are on

offer at Telstra to attract the

best and the brightest in the

telco industry. To start with

the last, no. The world

environment has changed starnl

limit this is a significant

company that will be provide

ing Australia's most

significant infrastructure

project in its history. So it

will be a reasonable remuneration. We're going

through the process of

appointing a search firm,

there's a whole range of

obligations required under law

now throw obligations under

free trade agreement. So there's quite a straight

forward process and we will be

talking with them about sorting

through the potentials, but we

will be looking forward to

making those announcements in

coming weeks and months, or

so. There has already been, can

I say, enormous interest

expressed out there in the broader telco community and

we've had a lot of interested

phone calls to my office, to

the departments, to my staff,

about people who would like to

participate, people who have

grasped the nation building

sides and scope of this

project. There is a lote of

interest. I've already had to

tell Tony Warren he can't be

chairman. But he will be

alright! The next question is

from Nick butt limit Nick from the Western Australian newspaper. Just on another

topic, file sharing - France is

currently putting through laws

that will see people consumers

kick from their ISP the they

are caught downloading movies

that have been stolen or music

dha's been stolen. I think the

UK is considering similar laws

and also New Zealand. Is the

Rudd Government considering

introduce ing such laws or

might you introduce sort of

watered down versions such as

sending let to their ISP if they're caught doing

this? We've been engaged with

conversation with the ISPs and

the movie and museic producers.

We've been trying to encourage

them to come together to find a

resolution. Some days it looks

like it will make some progress

and other days it look likes it

will make no progress. There is

a court case under way at the

moment that impacts direct oi

ly on this meater. We will be

waiting to see once that court

case kicks off. The results of

that court case and whether or

not that resolves this issue or

whether or not we need to

continue to en courage

differing points of view on this top yivenlth but I think

one of the things that hampers

growth and security in online

activity is a lack of

confidence that IP will be

respected. Unless you have a

capacity to patent and protect

IP, unless you have a capacity to guarantee that intellectual

property can be harnessed, then

I think that will be to the

long-term detriment of business

moving online. So I think there

is a need for people to

recognise that IP needs to be

able to protected in the online

world in the same way that it's

protected in the off-line

world. So we're following this

case were closely - very

closely. Senator, Carlos from

the Australian associated

Press. How goes the war with

Telstra? And just taking you

back to the regulatory re forms

you mentioned, does this regime

you're setting up under the NBN

mean strucial separation of

Telstra, separation of their

retail and whole sale arms

won't be necessary or is that

an inevitable path The

relationship with Telstra, despite how it sometimes looks

in the newspapers and the

occasional comment, he is very

engaging and I'm sure he would

have a lot to say if he was

still in the country. But I

found since our announcement

that Telstra have been very

positive and very willing to be

engaged in a constructive

dialogue and I welcome. That. That's is a really important

and positive step. The

regulatory reform paper put

forward talks about a range of

options, that's why we sought

comment. It doesn't require or advocate structural separation.

It looks at a whole range of

issues like further functional

separation which is short of

structural separation. It talks

about the potential problem of

having the cable owner and the

telco being the same, the ACCC

identified this many years ago,

around the world in countries

that have got the pay and the

telco to together, you have

slower speeds and more

expensive prices and where the

telco and pay compaeds, you

have faster speeds and lower

prices. So that is one of the

issues that we're considering.

Then there's the question of

content and the actual Foxtel

ownership. Foxtel through Fox

sports have an enormous amount

of content. If one telco owns

all the content , is it

possible for other telcos to

provide a meaningful

Competition? You saw C-Seven

collapse, the rival to Foxtel,

when it lost its football

content. So I think these are

areas Graeme Samuel has

identified. So there's a

variety of issues they talked

about in the paper and we're

seeking views and we hope that

we will have very meaningful

discussion with the sector on

that. We've already had a lot

of interest in that. We ran a

par y legal process to the

request for proposals and there

won't one commission of the

80-odd that came in that said

the intraising regulatory

system is working fine we

shouldn't change it. So

everybody who put it said we

have to change the intraising

regulatory system, it's not working. Mellis gentleman

Clarke. Melissa Clarke on from

the ABC. On the regular

industry reform paper it incollides a discussion point

on access to pay phones. Is the

Government inclined to ensure

that the public pay phones

still remain accessible

regardless of their commercial

viability or is that something

the Government would be more

incline ed to leave the private

telecommunications companies to

decide. It've had some

experience in trying to roll

out phones into particular ly

areas of not high population

density. And no-one, from

Telstra down was interested in

putting phones into certain

areas. So I think there will

always be a need for government

regulation to guarantee that

phone service is available. It

is an essential service in

Australia. The bushfires proved

this. The recent issues around

with the death unfortunately of

a child out in the north and

wetion of Australia because

people couldn't necessarily

access, it wasn't the only

issue but it was a factor in there not being a fast

response. There has to be phone

service provided. I don't want anyone to think for a moment

that everyone has a mobile

phone, and therefore you don't

need a landline anymore. Minister, Philip

Hudson from the 'Sydney Morning

Herald'. Despite your nice

comments now about Telstra the

Government has had a fairly

feisty relationship with the

company, particularly the

chairman and out going CEO. Do

you endorse the moves by the

Federal Government's Future

Fund chairman to encourage

donnal McGeky to retire as

Telstra's chairman and I wonder

when you will be releasing the

maps of what hey areas of

Australia will get 100-time s

faster broadband and what are

the 10% of areas that will be

getting the 12%

faster? Look, the future furnd is a separate entity from

the Government. I has its own

guardannes and it makes its own

decision. I've seen the

commentary around the debate

that the Future Fund has been

engaged in. It's a legitimate

shareholder. The Government

plays no role in this. I've

never met or spoke with David

Murray since he became the

chairman of the Future Fund.

It's a shareholder and it's

entitled to express its views

to the board. It's a matter

entirely and proper lir being

belt with between the board and

the shareholder. We don't have

a view about who the chairman

of Telstra should be. That's a

matter for its shareholders and

rightfully so. We've worked

with a long line of chairs in

the past and we're relaxed

about any decision that Telstra

makes at all on this issue. It

is not for the Government to

say who the chairman of Telstra

should be. In terms of the

map, a large part of this

debate and we specifically said

we would be able to reach

easily the 1,000 person towns.

Depend tong configuration of

the network you can reach

deeper. There is even some

technology that was announced

just before our announcement

and I will put my geek hat on,

splitters which are a key part

of the instead of nodes we've

moved to splitters now, a key

part of the fine tore the home

network. At the moment the

technology a louse you once you

put a splitter on the side of

the road you can go 20 Ks

before you get degradation of

content. The new sniters that

are starting to be available

and k punch you 60km. So you

can put something on the side

of the road and go 60km to the

home and still deliver 100 mg.

That is the sort of technology

that will allow us to reach

further. I am keepinget h

criticised by Steve that it's

only 100 mgs. I know telcos say

we can give you 70 mgs if

you're into a laboratory on

midnight and no-one else is

using it. I tend to talk about

the minimums we can deliver - I

know I am exaggerating about

some of those claims! But I am

constantly trying to talk about

the minimums that we can

deliver rather than the

maximums that Committee we can deliver. We are confident that

we're able to reach as far as

we're saying and, look, Nick

Minchin constantly criticised

us and the Opposition for

saying we would go 98% to the

node. So said it was completely

un economic, completely

unsustainable. We moved 9 o% of

the home and they say we've

sold out regional Australia.

Malcolm Turnbull who tells us

he invent ed the Internet in

Australia, he's happy with how

fast he can download his MSF.

That's the Internet to Malcolm

Turnbull. We believe we can

reach depend tong configuration

of the network where the trunk

routes go by we can reach the

90 comfortably and probably

further with this new splitter

technology. The next question

from Emma chaumers. From the

'Courier Mail'. You spoke a lot

about the electricity rollout and likened that to the rollout

of the NBN network. In

Queensland the deregulation of

the electricity market was

supposed to deliver lower price

force consume ers but prices

have gone up. How can you

ensure tra the industry will

benefit consume ers. The white paper we thought we needed to

give greater power to the ACCC

in some of these areas.

Particular ly in the past where

you've had a vertically

integreat company like we've

got there's a very robust

exchange that happens between

the two. So we've actually

talked about greater pow terse

electronic in this regulatory -

- powers in this regulatory

paper while the network is

being rolled out. We support

the ACCC needs a more robust regulatory approach and it

needs to be less contrained by

its existing processes but

we're very keen to see what

this regulatory paper debate

brings forward and we will be

considering that when we bring

legislation forward in the

second half of the

year. . Simon Groes from

science immediatand the

Canberra times. You spoke about

broefrnd being an enabler of

ways to reduce the carbon foot

print of the economy, through

telecommuting or whatever. You

also talked about your forecast

that health data could provide

about or soak up a quarter of

the capacity of a new broadband

system, which showing it's a

very good example of how the,

when you provide this system

the demand will strengthen. The

example with health being that

and now you get an X-ray or a

colon honourable senator copi,

you take the hard copy home,

you take it to your doctor, the

report from EEG s can be sent

to your special nis the future.

Those things will be download -

they will be held on data

centres. So the remote doctors

can look at all these things.

It's next generation of YouTube

perhaps! I am not sure a

colonoscopy will match up with

YouTube As demand grows and

capacity grows the use of this

technology demands more

electricity, the kind of this

new system you're putting in is

going to be theoretically in

place by the time we hit the

2020 targets for fibre sent -

5% at least reduction in

carbon. What kind of

comprehensive data has the Government Government got about

how your NBN will reduce our

carbon footd print in the context of this greater

use? That is a very good

question. I mentioned some of

the benefits. Smart grids,

telecommuting and traffic

flows. NICTA have designed a

fabulous traffic flow using

sensors at the moment and we

sold it to 30 other mun sip

alities around the world. So

already we can look at some of

the benefits that are coming.

The key comparison is that a

fine tore the home network and

Rudd Tucker recently went into

tribute on, this it's for more electricity efficient than

wireless and HFC. So if you're

looking at a technology that

minimising the carbon foot

print of it own this is the

network that does it. We've

picked the best technology with

the lowest carbon foot print of

its own. It then leads into the

smart grids. In the US, in

Texas, they introduced a smart

grid a couple of years ago and

they cancelled 8 future


PowerGenerators. And if you

think about that in Australian

content, Joe bieden has talked

about smart grid and what it

can do in the - Biden has talked about smart grid and

what it can do in the US. So

the smart grid technology that

is being rolled out, we're on

smart neither moment and

Victoria is starting to roll

out the first of the smart meet

ers in con junction all round

Australia, if we're able to

link together the broadband

plan and what's happening in

the electricity rollout of

smart metres I think you can

see an enormous greenhouse foot

print improvement from this

technology. Dan Harrison. Minister, Dan

Harrison from the the 'Age'. I

wonder if I could change the

topic for a moment. Last week

the Government committed to Zed

zetding up a new ABC digital

television channel dedicate ed

to children's content. Does

this mean that the Government

is going to give the ABC a real

terms increase in its funding

or is the ABC going to have to

look at cutting back service or finding other revenue streams

to fund that extra channel as

well as the extra service it

currently provides? Ly I will

be in a great deal of trouble

if I give you a scoop about

what's in the Budget. But it

will be fair to say that the

ABC would struggle within its existing resources to deliver a

kids channel. That is about as

far as I can go before being

hung drawn andquartered and if

any of my colleague s are

watching they will beat me with

a stick if I reveal more.

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