Fibre in new developments

To complement the rollout of the National Broadband Network, the Australian Government wants fibre-to-the-premises (FTTP) infrastructure installed in new developments. The Government considers it counterproductive to rollout fibre nationally and leave new developments behind. Installing fibre in new developments will give property buyers early access to the benefits of next-generation broadband and help avoid future retrofitting costs.

In many parts of Australia developers have already recognised the value that home owners place on fibre. Developments including University Hill in Victoria, Forde and Crace in the Australian Capital Territory, Lochiel Park in South Australia and Bingara Gorge outside Sydney are just a few already installing FTTP infrastructure. The Government's policy builds on these existing practices.

Role of NBN Co in New Developments

On 20 June 2010, NBN Co and Telstra announced that they had entered into a Heads of an Agreement on the rollout of the National Broadband Network (NBN). In support of that agreement the Government indicated it would progress public policy reforms to support the transition to the NBN.

Following extensive consultation and consideration of the Implementation Study recommendations, the Government has determined that from 1 January 2011 NBN Co will act as wholesale provider of last resort in new developments constructed within, or adjacent to, NBN Co's long term fibre footprint. Developers—and, on their own property, property owners—will be required to cover the costs of trenching and ducting. NBN Co will cover the other costs of installing fibre infrastructure in the development, including backhaul.

During the period that the NBN is being deployed, NBN Co may sub-contract the rollout and operation of fibre networks in new developments, providing that the networks are built to meet the technical specifications of the NBN and operated on an open access basis. Ownership of these networks would transfer to NBN Co and form part of NBN Co's open access wholesale only network.

Telstra will not be required to provide infrastructure in new developments. However to ensure that retail services are offered in new estates, Telstra will be required to provide standard telephone services to end users in new developments in which retail services are not offered by another service provider (retail provider of last resort).

These arrangements will not prevent developers from using other companies to rollout fibre networks in new developments if they wish, but such networks will need to comply with the technical specifications of the NBN and be operated on an open access basis, and just like the NBN wholesale services would be offered on an equivalent basis.

NBN Co's role will apply regardless of whether the Fibre Deployment Bill currently before the Parliament is passed.

Fibre Deployment Bill

On 18 March 2010, the Government introduced the Telecommunications Legislation Amendment (Fibre Deployment) Bill 2010 into the Parliament to establish a legislative framework.

Media release: Superfast broadband for new developments

Despite the announcement of 20 June 2010, the Government will continue to seek the passage of this legislation, amended as necessary to deliver in full the arrangements described above, to ensure all stakeholders have certainty as to their obligations to have fibre installed in new developments.

The Bill will insert a new Part 20A into the Telecommunications Act 1997. Under the legislation the Minister will be able to specify types of real estate development projects in which:

  • fixed lines which are installed will need to be optical fibre
  • passive infrastructure which is installed, like conduits and pits, will need to be fibre-ready.

The Bill also amends the industry codes and standards processes under Part 6 of the Act to make it easier to create codes and standards for optical fibre infrastructure and services where this is required.
The Bill, Explanatory Memoranda and Second Reading Speech are available on the Parliament of Australia website.

The report of the Senate Environment, Communications and the Arts Legislation Committee on the Bill was released on 12 May 2010.

Subordinate legislation is needed to bring the framework into full operation. On 16 April 2010 the Minister released a position paper proposing how the subordinate legislation might work. This approach is now being revised to reflect the arrangements announced on 20 June 2010. The subordinate legislation will be developed in close consultation with stakeholders and released for public comment and be subject to Parliamentary scrutiny.

The Government's objective is to have the legislative framework in place from 1 January 2011. The legislation may take practical effect on a phased basis from this date onwards. This will be addressed in the subordinate legislation.

To support the legislative framework, the Government is also working with stakeholders on related matters such as technical guidance, accreditation and certification, education and awareness raising.

Consultation

The Bill and the announcement of 20 June 2010 are the products of an extended period of stakeholder consultation—including the release of a consultation paper in May 2009, formation of the Fibre in Greenfields Stakeholder Reference Group in August 2009 and release of the exposure draft Bill in December 2009. The stakeholder consultation paper and submissions in response to it are provided below for reference.

People building in new estates or building fibre-ready houses

A range of work is underway to provide greater guidance to new home builders on making their homes fibre-ready.  For more information about preparing your home, you may want to consult the following commercial resources.

These links are provided for the information of interested parties. The Department does not endorse particular documents, carriers, carriage service providers or installers for the installation of fibre services.

 
Document ID: 112474 | Last modified: 23 July 2010, 9:53am