Note: Where available, the PDF/Word icon below is provided to view the complete and fully formatted document
National Broadband Network—Select Committee—Final report


Download PDF Download PDF

The Senate

Select Committee on the National Broadband Network

Final report

May 2016

ii

 Commonwealth of Australia 2016

ISBN 978-1-76010-449-8

Senate Select Committee on the National Broadband Network Department of the Senate PO Box 6100 Parliament House Canberra ACT 2600 Australia

Phone: + 61 2 6277 3535 Fax: + 61 2 6277 5818 Email: nbnsen@aph.gov.au Internet: http://www.aph.gov.au/senate_nbn

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivs 3.0 Australia License.

The details of this licence are available on the Creative Commons website: http://creativecommons.org/licenses/by-nc-nd/3.0/au/

Printed by the Senate Printing Unit, Parliament House, Canberra.

iii

Committee Membership

Core Members

Senator the Hon Kate Lundy, Chair ALP, ACT

(to 1 April 2015)

Senator Anne McEwen, ALP, SA

(From 1 April 2015, Chair to 13 May 2015)

Senator Jenny McAllister, Chair ALP, NSW

(from 14 May 2015 to 12 November 2015)

Senator the Hon Jan McLucas, Chair ALP, QLD

(from 12 November 2015)

Senator Zed Seselja LP, ACT

(to 30 June 2014, Deputy Chair to 30 June 2014)

Senator Cory Bernardi, LP, SA

(from 1 July 2014 to 3 March 2015, Deputy Chair 10 July 2014 to 3 March 2015)

Senator the Hon Arthur Sinodinos, LP, NSW

(from 3 March 2015 to 12 October 2015, Deputy Chair 5 March 2015 to 12 October 2015)

Senator the Hon David Johnston, LIB, WA

(from 15 October 2015, Deputy Chair from 15 March 2015)

Senator the Hon Lin Thorp (to 30 June 2014) ALP, TAS

Senator Catryna Bilyk (from 1 July 2014) ALP, TAS

Senator the Hon Stephen Conroy ALP, VIC

(Chair, 6 December to 20 December 2013)

Senator Scott Ludlam AG, WA

Senator the Hon Anne Ruston (to 12 October 2015) LP, SA

Senator Dean Smith (to 4 February 2016) LP, WA

Senator Linda Reynolds (from 12 October 2015) LIB, WA

Senator Joanna Lindgren (from 4 February 2016) LP, QLD

Participating members who contributed to the inquiry

Senator Deborah O'Neill (ALP, NSW) replaced Senator Kate Lundy from 13 December 2013 to 19 December 2013.

Senator Anne McEwen (ALP, SA) replaced Senator Catryna Bilyk on 12 March 2015.

iv

Secretariat

Mr David Sullivan, Committee Secretary

Ms Casey Mazzarella, Senior Research Officer

Ms Shannon Ross, Administrative Officer

v

Table of Contents

Committee Membership ................................................................................... iii

Chapter 1.............................................................................................................. 1

Report ........................................................................................................................ 1

Appendix 1 ........................................................................................................... 3

Submissions ............................................................................................................... 3

Appendix 2 ........................................................................................................... 7

Additional information, answers to questions on notice and correspondence ... 7

Additional information received............................................................................. 7

Answers to Questions on Notice ............................................................................ 8

Correspondence .................................................................................................... 10

vi

Chapter 1 Report

1.1 The purpose of this report is to enable the evidence received by the committee to be tabled by the last sitting day of the 44th Parliament.

1.2 On 14 November 2013, the Senate established the Select Committee on the National Broadband Network to inquire into and report on the government's reviews of the National Broadband Network (NBN) and the governance of nbn (formerly NBN Co) with interim reports as the committee sees fit and a final report on or before 10 June 2014. On 14 May 2014, the Senate agreed to extend the date for the presentation of the committee's final report to the last sitting day of the 44th Parliament.1

1.3 The committee's terms of reference identify the following areas of inquiry:

• the establishment of the government's strategic review of the NBN including:

• the adequacy of the terms of reference,

• the selection of personnel and expert advisers to the review,

• the data provided to the strategic review, in particular, any variation between that data and data used by NBN Co in preparing its annual report and corporate plan, and

• the impact of the strategic review on the operational effectiveness of NBN Co;

• the outcome of the strategic review of the NBN, including:

• the extent to which the review fulfilled its terms of reference,

• the reliability of assumptions made in the review, including, inter alia, the cost of alternative network equipment, the revenues of NBN Co under alternative scenarios, construction requirements and access to Telstra's copper network,

• the implications of any alternatives considered for the long-term

structure of the industry, in particular, the structural separation of access networks from retail operations, and

• any other matters arising from the strategic review;

• the establishment and findings of the government's cost benefit analysis;

• the conduct and findings of the government survey of the availability of

broadband in Australia; and

• any related matter.

2

1 Journals of the Senate, No.28, 14 May 2014, pp 795-796.

2 Journals of the Senate, No. 3, 14 November 2013, p. 133.

2

1.4 The committee held eight public hearings between November 2013 and March 2014 and tabled its first interim report on 26 March 2014. The committee held eight public hearings after the tabling of the first interim report and tabled its second interim report on 19 March 2015. The committee held a further four public hearings following the tabling of the second interim report. The twenty hearings held to date have taken place in Canberra, Sydney, Melbourne, Hobart, Perth and Terrigal (NSW).

1.5 The committee received 102 submissions and supplementary submissions which are listed at Appendix 1, and a significant number of answers to questions on notice, additional information and correspondence which are listed at Appendix 2.

1.6 The committee thanks all those who assisted with its inquiry including those who have made submissions and given evidence at hearings.

Senator Jan McLucas Chair

Appendix 1

Submissions

1. Competitive Carriers' Coalition

2. Central Coast Community Union Alliance

3. Gosford City Council

4. Mr Carl Sudholz, Fast Task Tools Pty Ltd

5. Mr Derek Bell, Lucid Web Design

6. Mr David Abrahams, Central Coast Broadband Alliance

7. Mr Grant Booth

8. Mr James Hodgson

9. Councillor Linda Scott, City of Sydney Council

10. Innovative Synergies

11. iiNet

12. Mr Kenneth Tsang

13. Queanbeyan City Council

14. Alexandrina Council

15. Ballarat ICT Limited

16. Name Withheld

17. Mr Chris Gibbs

18. NORTH Link

19. Mr Jamie Clingin

20. Ms Leah Lothringer

21. Mr David Saunders

22. Griffith City Council

23. Albury City Council

24. Aurora Gaming

25. Mr Nick Assiouras

26. RP & JA Anderson

27. Dr Craig Watkins

27.1 Supplementary to Submission 27

28. Mr James Chisholm

4

29. City of Darebin

30. Name Withheld

31. Mr Duncan Hames

32. Willoughby City Council

33. Yarra Ranges Council

34. Tasmanian State Government Department of Premier and Cabinet

35. City of Greater Geraldton

36. Mr Bryan Walpole

37. Mr Gavin Raper

38. Mr Paul Goossens

39. City of Melton Council

40. Future Party

41. Mr Robert Hill

42. Mr Andrew Thornton

43. Mr Paul Murphy

44. Bundaberg Regional Council

45. Mr Alister Walker

46. Mr Richard Ure

47. City of Bunbury

48. Mr Gavin Lynch

49. Mr Fred Andronikos

50. Mr Matt Wilkinson

51. Mr Mark Ryan

52. #MyBroadbandvReality

53. City of Victor Harbor

54. Ms Janet Scott

55. Mr Paul Maybon

56. Mr Steve Ulrich

57. Renown Wolf

58. City of Sydney

59. Mr Dick Garner

60. City of Nedlands

61. Mr Robert Lindstrom

5

62. Regional Development Australia - South West / South West Development

63. Mr David Fuller

64. Mr Paul Aslin

65. City of Whittlesea

66. Ms Nicola Bussell,

67. Evocities

68. Mr Conrad Fuller

69. Mr Paul Di Berardino, Proeye Communications and Security Systems

70. NBN Alliance

71. Mr Paul Budde, BuddeComm

72. Mr Nick Maxfield

73. Ms Carolyn Armstrong

74. Mr Dagmar Dixon

75. Mr Michael Lansley

76. Ms Jacqueline Brody

77. The Warren Blackwood Alliance of Councils (Inc)

78. Ms Susan Hirst

79. Ms Annie L-Wells

80. Mr Mohammad Mawla

81. Mr Mark Campbell

82. Mr Joshua Tefay

83. Mr Jacob Griffiths

84. Wagga Wagga City Council

85. Ms Virginia Bidwell

86. Mr Cameron Watt

87. Name Withheld

88. Mr Shannon Wynter

89. Mr James Imray

90. Northern Melbourne Regional Development Australia Committee

91. Mr Rhys Pitman

92. Dr Peter Gerrand

93. ACT Government

94. Name Withheld

6

95. Mr Ronnie Morris

96. Mr Ray Barbero

97. Telstra Corporation Limited

98. Fastel

98.1 Supplementary to submission 98

99. Name Withheld

100. Confidential

101. Kym Drew

102. Ms Anna Shaw

Appendix 2

Additional information, answers to questions on notice and correspondence Additional information received

1. CEPU photographs tabled at public hearing 28 November 2013, Canberra

2. NBN Co Opening Statement at public hearing 11 December 2013, Canberra

3. Letter - tabled at public hearing 29 November 2013, Canberra

4. Letter from the Minister for Communications, the Hon Malcolm Turnbull MP, regarding release of unredacted copy of the NBN Strategic Review at public hearing 17 December 2013, Sydney

5. Power point presentation, CEPU and ETUWA at public hearing 29 January 2014, Perth

6. CEPU document tabled at public hearing 4 February 2014, Hobart

7. CEPU photographs tabled at public hearing 4 February 2014, Hobart

8. CEPU document tabled at public hearing 4 February 2014, Hobart

9. Letter from Chair of Senate Select Committee on the National Broadband Network to Executive Chairman NBN Co regarding outstanding answers to Questions on Notice, 10 February 2014

10. Letter from the Chair of the Senate Select Committee on the National Broadband Network to Minister for Communications regarding outstanding answers to Questions on Notice, 28 February 2014

11. Letter from Executive Chairman NBN Co to Chair of the Senate Select Committee on the National Broadband regarding outstanding answers to Questions on Notice, 28 February 2014

12. Letter from Chair of Senate Select Committee on the National Broadband Network to Executive Chairman NBN Co regarding outstanding answers to Questions on Notice, 7 March 2014

13. The NBN Update, tabled by Mr Kenneth Tsang at public hearing 5 May 2014, Sydney

14. PowerPoint presentation - NBN Co, tabled by Senator Conroy at public hearing 5 May 2014, Sydney

8

15. PowerPoint presentation - Cost-Benefit Analysis and Review of Regulation Panel of Experts, tabled by Senator Conroy at public hearing 5 May 2014, Sydney

16. Paper, “Getting Some Reality into Debates about NBN FTTP”, tabled by Mr Robin Eckermann at public hearing 19 May 2014, Canberra

17. PowerPoint presentation shown by Senator Conroy at public hearing 11 July 2014, Canberra

18. PowerPoint Presentation - tabled by Senator Conroy at public hearing 26 September 2014, Canberra

19. Letter tabled by Senator Lundy at public hearing 26 September 2014, Canberra

20. Letter tabled by Senator Conroy at public hearing 3 October 2014, Canberra

21. PowerPoint Presentation - NBN Co, tabled by Senator Conroy at public hearing 3 October 2014, Canberra

22. Letter from Department of Communications, clarifying evidence given at public hearing on 3 October 2014, Canberra

23. Information about Fibre-to-the-node trail at Umina received from Telstra, 27 May 2015.

24. NBN Opening Statement at public hearing 14 September 2015, Canberra

25. nbn - Opening Statement - Mr Bill Morrow, tabled at public hearing 15 March 2016, Canberra

26. Broadspectrum - Opening statement - Mr Stuart Nevison, tabled at public hearing 15 March 2016, Canberra

Answers to Questions on Notice

1. Index & Answers to Questions on Notice - public hearing - 28 November 2013, Canberra

2. Index & Answers to Questions on Notice - public hearing - 29 November 2013, Canberra

3. Index & Answers to Questions on Notice - public hearing - 11 December 2013, Canberra

4. Index & Answers to Questions on Notice - public hearing - 17 December 2013, Sydney

9

5. Index & Answers to Questions on Notice - public hearing - 29 January 2014, Perth

6. Index & Answers to Questions on Notice - public hearing - 4 February 2014, Hobart

7. Index & Answers to Questions on Notice - public hearing - 11 March 2014, Terrigal

8. Index & Answers to Questions on Notice - public hearing - 12 March 2014, Sydney

9. Index & Answers to Questions on Notice - public hearing - 5 May 2014, Sydney

10. Index & Answers to Questions on Notice - public hearing - 19 May 2014, Canberra

11. Index of Questions on Notice - public hearing - 11 July 2014, Canberra

12. Answers to Questions on Notice - public hearing - 11 July 2014, Canberra

13. Index of Questions on Notice - public hearing - 26 September 2014, Canberra

14. Answers to Questions on Notice - public hearing - 26 September 2014, Canberra

15. Index of Questions on Notice - public hearing - 3 October 2014, Canberra

16. Answers to Questions on Notice - public hearing - 3 October 2014, Canberra

17. Index of Questions on Notice - public hearing - 2 and 4 December 2014, Canberra

18. Answers to Questions on Notice - public hearing - 2 and 4 December 2014, Canberra

19. Index of Questions on Notice - public hearing - 12 March 2015, Canberra

20. Answers to Questions on Notice - public hearing - 12 March 2015, Canberra

21. Answers to Questions on Notice - public hearing - 17 April 2015, Melbourne

22. Index & Answers to Questions on Notice - public hearing - 14 September 2015, Canberra

23. Foxtel - Answer to question on notice from public hearing held on 4 March 2016 (received 31 March 2016)

24. Broadspectrum - Answer to question on notice from public hearing held on 15 March 2016 (received 7 April 2016)

10

Correspondence

1. Letter from Mr David Sullivan, Committee Secretary to Visionstream - invitation to public hearing in Hobart on 4 February 2014, dated 20 January 2014

2. Letter from Visionstream Australia to Mr David Sullivan - response to invitation to public hearing in Hobart on 4 February 2014, dated 24 January 2014

3. Letter from Chair to Visionstream Australia - regarding invitation to public hearing in Hobart on 4 February 2014, dated 31 January 2014

4. Letter from Visionstream Australia to Chair - regarding invitation to public hearing in Hobart on 4 February 2014, dated 3 February 2014

5. Letter from Chair to Chairman of NBN Co regarding outstanding answers to questions on notice, 23 June 2014

6. Letter from Chair to Secretary of Department of Communications regarding outstanding answers to questions on notice, 23 June 2014

7. Letter from Chairman of NBN Co to Chair - response on outstanding questions on notice, 26 June 2014

8. Letter from Drew Clarke, Secretary, Department of Communications, 8 July 2014

9. Letter from Chair to Mr Bill Hilzinger, Chairman, Southern Phone Company Limited, 18 July 2014

10. Letter from Chair to Mr David Buckingham, CEO, iiNet Ltd, 18 July 2014

11. Letter from Chair to Mr David Thodey, CEO, Telstra Corporation Limited, 18 July 2014

12. Letter from Chair to Mr Geoff Horth, CEO, M2 Telecommunications Group Limited, 18 July 2014

13. Letter from Chair to Mr Greg Provenzano, President, ACN Pacific Pty Ltd, 18 July 2014

14. Letter from Chair to Ms Kelly Mudford, Acting CEO, Telecommunications Universal Service Management Agency, 18 July 2014

15. Letter from Telstra Corporation Limited to Chair - response to in letter 18 July 2014