Lower Broadband Prices Prove NBN Folly

September 23, 2011

An ACCC report confirming the long term trend toward lower broadband prices is further evidence the Gillard Government’s National Broadband Network project is out of touch with the realities of the Australian telecommunications market, said Shadow Minister for Regional Communications, Luke Hartsuyker.

“The report shows real prices for cable broadband decreased by 1.1% in 2009-10, with an overall decrease in internet access prices of 14.9% since 2006-07. This is in stark contrast to the NBN, which has lodged a Special Access Undertaking with the ACCC, seeking permission to annually increase wholesale charges by up to CPI+5%.” Mr Hartsuyker said.  “The Government’s insistence on abandoning competition in the wholesale broadband market to construct a monopoly fibre to the premises network will undoubtedly lead to higher prices for consumers.

“Australians have been enjoying decreasing telecommunications prices for more than a decade, and it will come as a rude shock when prices begin to rise because of the NBN.  Minister Conroy’s failure to release NBN Co’s Key Performance Indicators as promised to Parliament’s Joint NBN Committee only reaffirms concerns the network is behind schedule and over budget. Ultimately, this mismanagement will mean even higher costs for consumers as the Government attempts to recoup its losses.

“The report also confirms the strong trend toward increasing use of mobile voice and data services,” Mr Hartsuyker said.

: