Study confirms Seniors can’t afford Labor’s NBN

August 10, 2011

A study released by the Queensland University of Technology today demonstrates that high internet costs over the National Broadband Network will be a deterrent for Seniors, particularly in regional areas, to access the internet.   Shadow Minister for Regional Communications Luke Hartsuyker said the study was completed by researchers at QUT and found that 40 per cent of Seniors believed that cost was currently a barrier to using the internet.

“Seniors can currently access a broadband service that meets their needs for around $10 a month. But under the NBN, the cost of access basic internet services will be substantially higher,” Mr Hartsuyker said.   “The cheapest service currently being offered though the NBN is $34.50.   The results of this study reinforce the Coalition’s argument that income levels are a real barrier preventing adequate internet access for thousands of Australian households.

“Australian Bureau of Statistics figures show that 34 percent of households with incomes of less than $40,000 per annum do not have internet access. This compares to households with an income above $120,000 where only five per cent do not have access to the internet.   NBN Co and the Gillard Government are now intent on making internet costs higher while they buy out competition and impose the NBN monopoly on households. The Government’s strategy can only increase costs.

“This was further highlighted yesterday when NBN Co announced a $3000 subsidy for retail internet service providers who simply can’t afford to connect to the network.   So having spent billions shutting down all wholesale competition to the National Broadband Network, NBN Co is now providing subsidies so that retail internet service providers can afford to access the new network.   This is Alice in Wonderland economics.  How can the Gillard Government justify wasting billions buying out the competition which is providing affordable broadband plans, only to replace it with a more expensive service which is not in demand?

“Many seniors and people in regional areas do not need the speeds or won’t be able to afford what the NBN will provide.   This approach will dramatically increase the price barriers that low-income households, Seniors, and regional Australians face when trying to access a suitable internet service.”