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Australia plans to mandate 25Mbps broadband speeds

By Maria SantosAustralia
2 min read
Healty internet usage
Healty internet usage
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The Australian government has introduced new legislation that would mandate the supply of broadband services with peak speeds of at least 25Mbps to all premises in the country.

The proposed Telecommunications Reform Package would require that services provided over the in-construction National Broadband Network (NBN) – even the fixed-wireless and satellite services – would need to be capable of broadband speeds of at least 25Mbps downlink and 5Mbps uplink.

A draft version of the reforms published last December excluded the fixed wireless and satellite components of the network from this obligation.

The legislation would also introduce the government’s planned A$7.10 ($5.36) per connection Regional Broadband Scheme, a levy that operators will pay to nbn for each connection capable of download speeds of 25Mbps.

The levy will be used to defray the expected A$9.8 billion in losses over 30 years that are expected to be accrued by the fixed wireless and satellite components of the network due to the shortage of customers.

In a concession for smaller players, the first 25,000 connections serviced by a broadband provider will not be subject to the levy for the first five years.

The new reform package will also mandate the delivery of voice capability over the nbn in fixed line and fixed wireless areas.

The Australian Communications Consumer Action Network (ACCAN)  has welcomed the consumer protection measures of the proposed legislation.
“The legislation includes big wins for all consumers, especially for regional, rural and remote consumers,” ACCAN CEO Teresa Corbin said.

“Broadband services are essential for consumers, yet currently, there is no requirement on nbn to connect and provide ongoing services to all premises. We are pleased that consumers can now be reassured that under the proposed legislation all premises must be able to access a broadband network capable of a minimum peak speed of 25Mbps download and 5Mbps upload.”

But she said ACCAN will also be pushing to ensure that public phones will be provided where they are needed and consumers relying on satellite services have access to reliable telephony and broadband services.

Questions & Answers

Q.

What is the purpose of the proposed A$7.10 levy on broadband connections?

A.

The levy is intended to help offset projected losses of A$9.8 billion over 30 years for the fixed wireless and satellite parts of the network. These losses are anticipated due to a lower number of customers in those areas.

Q.

Which types of broadband services will the new mandatory speed requirements apply to?

A.

The new legislation will require all services provided over the National Broadband Network to meet the speed mandate. This includes fixed-wireless and satellite services, which were initially excluded from earlier reform drafts.

Q.

Are there any exemptions for broadband providers from paying the new regional levy?

A.

Yes, smaller broadband providers will not be subject to the levy for their first 25,000 connections. This exemption will be in place for the first five years that the scheme is active.

Q.

What additional consumer protection measure does ACCAN want to see implemented?

A.

ACCAN will advocate for public phones where necessary and reliable telephony and broadband for satellite service users. They want to ensure these services are available to all consumers.

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