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National Broadband Network Companies Bill 2011

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The Parliament of the

Commonwealth of Australia








National Broadband Network Companies Bill 2010



(1)     Clause 2, page 2 (at the end of the table), add:

4.  Schedule 3

The day after this Act receives the Royal Assent.


[commencement - consequential on amt (2)]

(2)     Page 86 (after line 26), at the end of the bill, add:

Schedule 3—Amendment of the Productivity Commission Act 1998

1  After Division 1 of Part 3


Division 1A—Reference to Commission on NBN proposal

12A   Commission to prepare and publish a cost-benefit analysis

             (1)  The Commission must prepare a cost-benefit analysis of the NBN proposal and publish it by 30 September 2011.

             (2)  The cost-benefit analysis must include the following matters:

                     (a)  an analysis of the availability of broadband services across Australia, identifying those suburbs and regions where current service is of a lesser standard or higher price than the best services available in the capital cities;

                     (b)  a consideration of the different options by which broadband services of particular speeds could be made available to all Australians (particularly those in regional and remote areas and those in underserved metropolitan areas) with an estimate of the likely timeframe and cost of each option;

                     (c)  a consideration of the economy-wide benefits likely to flow from enhanced broadband services around Australia, the applications likely to be used on such services, and in particular a consideration of the different scale of such benefits depending on the broadband speed available;

                     (d)  a full and transparent costing of the proposed NBN project, including any financial and economic projections, models, assumptions and sensitivity calculations underpinning the estimates;

                     (e)  an examination of the likely pricing structure of NBN services;

                      (f)  an examination of reasonable commercial rates of return and cash flows for NBN Co, taking into account NBN Co’s costs of equity and debt and the risk profile of both NBN Co and the market in which it operates;

                     (g)  a consideration of the likely realisable value of NBN Co if it were to be privatised after 5 years, as currently contemplated in the NBN legislation;

                     (h)  an examination of the design, construction and operational arrangements of the proposed NBN project, so that direct and indirect outcomes from its construction and operation can be identified and evaluated;

                      (i)  an examination of the likely environmental and health impacts of the construction of the NBN;

                      (j)  an analysis of the effects of the proposed NBN on competition in the Australian fixed-line broadband market, including its effects on the scope for competition among different technologies for the provision of fixed-line and wireless broadband services;

                     (k)  an analysis of the impact of any exemption under the Competition and Consumer Act 2010 in connection with the NBN;

                      (l)  benchmarking of the NBN against comparable broadband services available in overseas markets;

                    (m)  consideration of potential technological advances and the likely impact on the NBN, including whether future technologies may be superior;

                     (n)  consideration of the likely take-up rate for NBN services, having particular regard to international experience;

                     (o)  consideration of the nation building social and community-specific benefits flowing from the NBN, particularly in relation to rural and regional communities.

             (3)  This Act applies in relation to the requirement in subsection (1) as if:

                     (a)  the requirement were a matter referred to the Productivity Commission for an inquiry by the Minister; and

                     (b)  the Minister had required the Commission to hold hearings for the purposes of the inquiry under paragraph 11(1)(a).

             (4)  Sections 11 and 12 do not apply in relation to the inquiry, other than as provided for by subsection (3).

[Productivity Commission to prepare cost-benefit analysis on NBN]