NBN expectations updated
The Federal Government has issued a new statement of expectations for the NBN.
Within the updated statement, the government acknowledges that the national broadband network will not always be profitable.
“The government recognises that NBN Co will not be able to generate a commercial return in delivering all of its obligations, particularly in regional and remote Australia,” the statement reads.
“And it is expected the company will take a flexible approach to supporting these activities, including through contributions from the Regional Broadband Scheme and, where necessary, returns in other parts of its business.
“However, where this occurs, NBN Co will be transparent, demonstrate that its expenditure is efficient and will maintain the flexibility to adopt future innovations and advancements.”
The government also says it expects the NBN to inform it of any “material trade-off” between fulfilling its policy objectives and its commercial obligations.
However, the government still expects the NBN to operate commercially, “efficiently within its capital constraints and proactively manage costs”.
Additionally, it says it will keep the NBN in public hands “for the foreseeable future”. This may renew certainty for some staff and proponents of the public network, which previous federal governments have looked to privatise.
Public service minister Katy Gallagher says the government expects NBN Co to be “highly efficient to support affordability for consumers, and also promote competition and innovation”.
“Following recent cyber-attacks on Australian citizens, and with bushfire and storm season well underway, it also highlights the importance of focusing on the security and resilience of our network,” Ms Gallagher said following the release of the updated statement.
Communications minister Michelle Rowland said the NBN must remain a “world-class” service.
“The statement has a strong focus on NBN Co’s role in ensuring that regional and remote Australia, including First Nations, are better connected than ever, as these are priorities for the Albanese government,” Ms Rowland said.