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Attachment 1 Final Report of the South Australian ATTACHMENT 1 FINAL REPORT OF THE SOUTH AUSTRALIAN PARLIAMENT’S ECONOMIC AND FINANCE COMMITTEE INQUIRY INTO THE NATIONAL BROADBAND NETWORK PUBLISHED 1 DECEMBER 2015 PP233 FINAL REPORT INQUIRY INTO THE NATIONAL BROADBAND NETWORK 88TH REPORT OF THE ECONOMIC AND FINANCE COMMITTEE _______________________________________________________ Tabled in the House of Assembly and ordered to be published on 1 December 2015 ____________________________________________________________________________ Second Session, Fifty-Third Parliament Contents Presiding Member’s Introduction 4 Executive Summary 5 Recommendations 7 1 Background to the National Broadband Network 9 The National Broadband Network 9 Initial Attempts to Start a National Broadband Network 9 The Rudd/Gillard Government’s FTTP-based National Broadband Network 10 The Abbott/Turnbull Government’s MTM-based National Broadband Network 12 2 Rollout of the NBN - Status Report 14 Fibre and Fixed Wireless Services 14 Satellite Services 16 The Technology Choice Program 16 3 How the delivery of the NBN can contribute to South Australia’s economic 18 growth, entrepreneurship and employment opportunities, in metropolitan and regional areas Availability and Uptake of the NBN 20 4 How the delivery of the NBN can contribute to South Australia’s business 23 efficiencies and revenues, particularly for small and medium businesses and sole-traders 5 How the delivery of the NBN can contribute to South Australia’s research, 29 development and innovation 6 How the delivery of the NBN can contribute to South Australia’s productivity 31 and workforce participation ICT Employment and Education Statistics 33 Page | 2 Economic and Finance Committee 7 How the delivery of the NBN can contribute to South Australia’s delivery of 35 government services and programs including health, education and training Education and Training 35 School Visits by the Committee 40 Telehealth 42 8 What policy, program and other enablers will need to be in place to maximize 47 these benefits for South Australia? 9 The impact on South Australia following changes to the structure and schedule 51 of the Commonwealth Government’s NBN program, particularly ceasing the rollout of fibre-to-the-premises The Multi-Technology Mix Model 51 FTTP versus FTTN 55 The Seal the CAN Project 57 Witness Responses Concerning the Copper Network 60 10 Other relevant matters 63 NBN Co Communication Issues 64 Unscrupulous Practices 66 11 Recommendations 69 Appendices 1 Inquiry Terms of Reference 87 2 The Economic and Finance Committee 88 3 Submissions Received 90 4 Public Hearings 91 5 Other Committee Activities - School Tours 94 6 Glossary 95 7 Timeline of Australian Telecommunication Milestones 97 8 Figures and Tables 100 9 Local Council NBN Survey 106 10 ACARA Digital Technologies Curriculum 114 11 Bibliography 116 Page | 3 Economic and Finance Committee Presiding Member's Introduction The National Broadband Network represents the most significant change to Australia's telecommunications landscape since the creation of the old Post Master General's department more than a century ago. With the challenges facing the nation and this state as we move into the future, South Australia and South Australians need to embrace a digital future. To do so, it is imperative that we have a broadband network that not only meets the current demands of the state, but is also flexible enough to meet future demands, many of which have yet to be conceived. The Economic and Finance Committee commenced this inquiry to allow a proper appraisal of several issues from a South Australian perspective. We need to know the current status of the network, the prospects for the future, and the likely effects of the change of government in 2013, and subsequent changes in policy. This inquiry has sought to address these questions and has delivered a set of nineteen recommendations that tackle these pressing matters. On behalf of the members of the Economic and Finance Committee, I would like to express my gratitude to those people who either provided a written submission to the inquiry, or appeared before the inquiry to present oral evidence. We received a wide range of views and opinions, and we have endeavoured to do them justice in the compiling of this report. Finally I would like to thank the members of the Committee, and the Committee's staff, who worked so diligently on this inquiry and on the preparation of this report. Lee Odenwalder MP Presiding Member 50 November 2015 Page I 4 Economic and Finance Committee Executive Summary In October 2014, the Economic and Finance Committee of the South Australian House of Assembly, on its own motion, announced an inquiry into the National Broadband Network. The inquiry received 18 written submissions from interested parties. These submissions ranged in size and scope from just a paragraph or two highlighting single issues, to extensively researched, multi-page documents covering many aspects of the inquiry’s brief. A full listing of the submissions received can be found in Appendix 3. In addition, the Committee held a total of nine public hearings during which it received testimony from 46 persons representing 29 different organisations. A full listing of witnesses heard can be found in Appendix 4. The Terms of Reference, as displayed in Appendix 1, lists several areas of interest to the state and its prospects in a digital future. These include areas in which the National Broadband Network (NBN) could, and if properly implemented should, be expected to have a positive impact on South Australia and its economy. All these potential benefits are predicated on the network being rolled out in a timely fashion and in a form that best enables the recipients to maximise their particular benefit. The rollout of the NBN in South Australia The Committee received evidence and heard testimony concerning the progress of the NBN rollout, and also the nature of the technology likely to be utilised in different regions of the state. The fundamental shift in the technological architecture that followed the change in Commonwealth Government in 2013 means that the existing copper infrastructure will be required to play a critical role in various components of the multi-technology mix model. The state of this infrastructure and its suitability for the increasing demands likely to be placed on it was raised before the Committee as a matter of urgency. The likely allocation of the various technologies to different areas of South Australia, and in particular the use of satellite in more remote regions, was also described for the Committee. The importance of proper communication and consultation, especially at community and business group levels, for the development and implementation of future digital policies was highlighted for the Committee. Recommendations 1-5 are made in response to these issues. The role played by state and local government The Committee was informed, by multiple witnesses, that until the general public and other stakeholders were able to observe the real benefits of broadband technology, uptake would remain at low levels. The Committee received evidence highlighting a positive correlation between the level of digital engagement by business and the revenue generated. The need for active government participation in the adoption of digital technologies was raised by several witnesses, as was the need for government not to stand in the way by imposing excessive planning or other regulatory burdens. It was also suggested that government should serve as an exemplar for the benefits of broadband technology by embracing new technology and work practices, such as teleworking by the public service. Page | 5 Economic and Finance Committee Recommendations 6-10 are made in response to these issues. The benefits of broadband on the health and education sectors The increasing role that digital technology is expected to play in the delivery of health services, particularly in remote areas of South Australia, was emphasised from both the teaching and medical practice perspectives. For example, the successful nature of several e-health trials was described for the Committee. It was stressed that in order for e-health programs to be successful, access to reliable, high-speed broadband is paramount. Recommendation 11 is made in response to these issues. The importance of the education and VET sectors to South Australia’s place in a digital future was made by several witnesses. In particular the increasing importance of science, technology, engineering and mathematics (STEM) subjects was raised, and valuable statistics provided for inclusion in this report. The need for the government promotion of ICT training at both the VET and university level was stressed for the Committee. Recommendations 12 and 13 are made in response to these issues. The Committee visited several schools and witnessed the incorporation of many aspects of digital education in the curriculum at various age levels. It observed early primary school students utilising digital learning tools, as well as high school students incorporating elements of the gaming culture in their learning. It was emphasised that the more enjoyable the students found these digital lessons, the less intimidated they felt. The Committee also learnt of the teething issues encountered by early adoption schools, and the ways in which these could be avoided as more schools come online in the future. Recommendations 14-17 are made in response to these issues. The benefits of broadband for South Australia It was
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