Federal Government Policy Update – Telecommunications Infrastructure in New Developments

The LNP Federal Government has released its policy on new developments for comment, to the industry. As a result, the cost of network development will be shared amongst Home Owners, Developers and NBN Co as well as fostering competition amongst alternate network providers for the provision of infrastructure. The new policy is expected to apply on and after  1st March 2015 and key impacts are:

Developers

  • Continue to be responsible for the cost of fibre ready pit and pipe
  • Will be required to pay a Deployment Charge $600/lot for SDU’s and $400/lot for MDU’s
  • Will be required to pay a Backhaul Charge of up to 50% of the first $1000/lot then 100% of costs > $1000/lot. The backhaul Charge will not be applicable where sufficient backhaul is currently in existence
  • These payments will only be applicable to new applications for fibre and will not be applied retrospectively
  • Developers will be able to choose which technology is deployed. Not all new developments will necessarily be reticulated with Fibre to the Premises (FTTP). NBN Co may choose to deploy Fibre to the Node (FTTN) or Hybrid Fibre Coax (HFC) where appropriate eg in-fill areas
  • Are required to give Infrastructure Providers of Last Resort ( IPOLR’s) a maximum of 6 months advance notice prior to the first home “ready for service” date. A minimum of 4 months’ notice is required. Developers would be liable to pay compensation for the provision of alternative service, should they be responsible for delays beyond “ready for service” dates
  • To have the opportunity to build fibre infrastructure eg on a Build and Transfer model

New Home Owners

  • Will be required to pay a one off network connection charge of $300. Retail Service Providers to collect

NBN Co

  • Remains the IPOLR for voice and broadband services in > 100 lot developments but can choose to undertake < 100 lot developments where economical to do so

Telstra

  • Remains IPOLR for voice services in < 100 lot developments
  • Remains the IPOLR for voice services in areas outside the fibre footprint – ie in NBN Co fixed wireless and satellite areas
  • Will retain its Universal Service Obligation(USO) but will have increased flexibility to use alternate technologies to deliver service

 Other Network Providers

  • Are not obliged to levy the charges for connection, Deployment and Backhaul

Design Houses

  • The role of design guidelines G645:2011 and NBN-TE-CTO-194 will be reviewed with a view to consolidation, the preference being for NBN-TE-CTO-194 to be the default guideline

 WA State Planning Department

  • The Federal government are encouraging the WAPC to make provision of telecommunications as a condition of subdivision clearance

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