Abbott govt gives NBN Co new directions

Written By Unknown on Selasa, 24 September 2013 | 11.25

THE Abbott government has set new targets for NBN Co and asked it to continue to roll out fibre-to-the-premises until a review is completed.

Communications Minister Malcolm Turnbull on Tuesday released an "interim statement of expectations" for NBN Co - the company managing Australia's biggest infrastructure project, the national broadband network.

The statement will guide NBN Co pending changes to its board, a strategic review, an independent audit and work on a new corporate plan.

"The interim statement instructs NBN Co to continue to roll out the network as rapidly and cost-effectively as possible throughout this process," Mr Turnbull said.

"(This) will see the NBN Co meet its contractual obligations by continuing to roll out fibre to the premises while the company conducts the strategic review of the project."

Forecasts for the number of premises passed by fibre cable have been revised down.

The figure is expected to be 729,000 by June 30, 2014, 1.74 million by June 20, 2015, and 3.115 million by June 30, 2016.

It was originally expected in the 2010 NBN corporate plan that 5.65 million premises would be passed by mid-2016.

"It is our goal following the completion of the review and a new corporate plan to see the NBN Co set realistic rollout targets and then consistently deliver on them," Mr Turnbull said.

NBN Co will be able to use a wider range of technologies to connect businesses and homes to the network.

"For example, this will allow NBN Co to trial the latest VDSL technology to deliver superfast broadband to homes and businesses in multi-dwelling units such as apartment blocks," Mr Turnbull said.

The minister said a new work program would give certainty to contractors.

Mr Turnbull told reporters the strategic review would be completed within 60 days of a new board being put in place.

The review would be conducted internally by the company, with input from experts and advisers.

The minister confirmed media reports he had asked NBN Co board members to offer their resignations and all but one had done so.

"That request should not be regarded as any criticism of any of the directors, least of all the chairman Siobhan McKenna," he said.

Mr Turnbull said he had taken the action to "give the government complete flexibility in remaking the board in light of its new policy agenda".

The federal cabinet would soon make the decision on the makeup of the board.


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