107/05
21 September 2005

Windsor wrong (again) on broadband subsidy

New England MP Tony Windsor has shown complete ignorance of the Government’s $157.8 million broadband subsidy scheme HiBIS and the $1.1 billion Connect Australia package recently passed by Parliament, Minister for Communications, Information Technology and the Arts, Senator Helen Coonan, said today.

Mr Windsor’s claim that money has run out for the Higher Bandwidth Incentive Scheme (HiBIS) is completely untrue. More than 700 communities across Australia have now been connected to broadband thanks to the HiBIS scheme and HiBIS is continuing to drive broadband take-up across Australia.

“According to figures released by the Australian Competition and Consumer Commission in the last 12 months alone more than 1.1 million subscribers have signed up to broadband, an increase of 108.3 per cent,” Senator Coonan said.

“The take-up of ADSL services is now at 1,579,500 and there are 2,183,300 broadband subscribers in Australia in total. These figures show there are a growing number of Australians are using alternative technologies to get access to broadband such as wireless and satellite technologies.

“These latest figures also demonstrate that Government subsidies for broadband are having a real impact on broadband take-up rates in Australia. There are now around 40 registered HiBIS service providers – Telstra is but one provider. HiBIS providers use a variety of technologies including ADSL, one-way and two-way satellite, wireless and cable.

“Telstra’s access to funding from the HiBIS program is capped at 60 per cent. This is to ensure that competitors rollout new technologies across Australia to give rural and regional Australians choice and new services. If Telstra is not offering services, customers should shop around for the best deal.”

By July 2005, ADSL accounted for more than 60 per cent of all HiBIS customers’ technology platforms, while 20 per cent used two-way satellite, 11 per cent used wireless connections, seven per cent used one-way satellite and the remaining two per cent used cable.

“Broadband take-up will continue to sky-rocket when the Government’s $878 million Broadband Connect program commences shortly,” Senator Coonan said.

“Broadband Connect will replace the incredibly successful HiBIS scheme and ensure more and more Australians enjoy the benefits of broadband, regardless of where they live.”

The HiBIS program will continue to help connect Australians to affordable broadband until Broadband Connect commences.

For more information on HiBIS, including a full list of providers, visit www.telinfo.gov.au.