- The direct government funding allocations for NBN Co, the Mobile Black Spot Program as well as the Regional Connectivity Program is set to a halt as funding for a transparent market-based Universal Service Guarantee is pushed.
- The report from the commission is highly critical of what it sees as a “lack of transparency around how these (government) investments are made and which priorities are pursued.
- The commission's report further states that in terms of the black spot fund, “there is opacity around how the mobile sites are prioritised and selected for government investment”.
The direct government funding allocations for NBN Co, the Mobile Black Spot Program as well as the Regional Connectivity Program is set to a halt as funding for a transparent market-based Universal Service Guarantee is pushed. This is according to a recommendation published by the Productivity Commission.
The report from the commission is highly critical of what it sees as a “lack of transparency around how these (government) investments are made and which priorities are pursued. Allocating funding under programs such as the NBN, MBSP, and RCP to specific areas or connection types means less funding available for investment in another location or technology. There is limited transparency about how such trade-offs have been weighed and if decisions made appropriately considered the relevant benefits and costs.”
The commission's report further states that in terms of the black spot fund, “there is opacity around how the mobile sites are prioritised and selected for government investment”.
When it comes to the federal government contribution amounting to $480M for the NBN fixed wireless upgrade, the report stated that “It is unclear how the decision was made to allocate government investment towards this connection type or to the locations currently serviced by these towers.”
“Instead of allocating regional digital infrastructure funding through programs such as the NBN, MBSP, and Regional Connectivity Program, the government could offer to pay the lowest-bidding service provider to deliver connectivity to a particular area, defined at the regional level, subject to conditions such as minimum service standards and maximum prices charged to consumers,” as proposed in the draft report.
“Ultimately, geographic breakdowns of internet connectivity, quality, and adequacy are not available at a sufficiently granular level to measure digital infrastructure gaps and inform targeted government investment,” the Commission also said.
In this case, the report highlights the establishment of a more “comprehensive and granular source of data about connectivity outcomes” that is seen to “facilitate technology-neutral decisions about what investments are most appropriate for specific locations where government funding may be required.”
The report also cited that despite the significant investments made by governments in this area, 23 of Australia’s 48 regions still have broadband and mobile connectivity infrastructure gaps, as reported by Infrastructure Australia. The gaps are defined as areas where broadband and mobile infrastructure “does not ensure user, business and industry needs are met.” In this case, less than acceptable internet speed was deemed as a problem in the agriculture industry. Statistics reveal that 28% of agriculture businesses identify this as an issue.
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