14 September 2005

Senate approves historic $3 billion package for telecommunications

The Minister for Communications, Information Technology and the Arts, Senator Helen Coonan, today welcomed the passage of five pieces of telecommunications legislation through the Senate.

“This is an historic day. Not only has the Government achieved legislative authority to implement its long standing and long stymied commitment to full privatise Telstra but we have secured more than $3 billion to ensure Australians have adequate telecommunications services both now and into the future,” Senator Coonan said.

The substantial Connect Australia package will rollout affordable broadband connections to people living in regional, rural and remote areas, extend mobile phone coverage, build new regional communications networks and set up vital telecommunications services for remote Indigenous communities.

I t includes $878 million for Broadband Connect to provide all Australians with affordable broadband services; $113 million for Clever Networks to fund broadband networks to improve health, education and other essential service; and $90 million for Backing Indigenous Ability which will, among other things, improve internet services for remote Indigenous communities.

This $1.1 billion package is available immediately after the passage of legislation through both Houses and is the biggest regional telecommunications assistance program in Australia’s history.

Further to this, a perpetual $2 billion Communications Fund will be established with cash when the bills receive Royal Assent.

The money from the Fund will be used to roll-out of new telecommunications services identified as needed by three-yearly reviews of telecommunications services in rural, regional and remote Australia. The first of these reviews will be conducted in 2008.

The Bills passed by the Senate also cement and augment significant regulatory and consumer safeguards.

The Government will now introduce operational separation of Telstra’s internal operations to deal with ongoing concerns about Telstra’s high degree of integration; improve competition regulation and enhance consumer safeguards such as the Customer Service Guarantee.

The Government will consider whether and when to sell its remaining shareholding in Telstra next year.