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high-speed broadband could cost $200 a month

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Date added: 24 Jan 2010

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high-speed broadband could cost $200 a month screenshot

Government will build $43bn network

CONSUMERS have been warned they will have to pay at least $200 a month
to use the Federal Government
s high-speed broadband network - or pay
less for slower speeds.

The Government this week unveiled a
plan to build a $43 billion national network promising speeds of 100
megabits a second - 100 times faster than now available, The Daily Telegraph reports.

The
super-fast network will be delivered within eight years to 90 per cent
of homes, schools and businesses. But analysts and the Federal Opposition say it won
t come cheap.

Paul
Broad, chief executive of Australia
s third largest telco, AAPT, is
convinced broadband bills will rocket to at least $200 a month under
the Government
s plan and says consumers simply won
t pay.

I always get reminded of the Cross City Tunnel, he told Lateline Business this week.
You know, wonderful piece of infrastructure, but no one wants to use it for the price.

The Opposition
s broadband and communications spokesman Nick Minchin told The Daily Telegraph that Labor had made a huge promise to the Australian public - but provided very little detail.

It
s understandable that broadband users would like some idea of what they will have to pay, he said.

The minimum price most analysts are predicting is $100 a month - twice the price that many people pay today.

The reality is, to get a commercial return on a project of this scale, consumers will be paying higher prices.

The
Opposition also wants the Government to prove the national broadband
network expert panel - of which Treasury Secretary Dr Ken Henry is a
member - actually advised the Government to spend such a large sum of
money on the project.

The Opposition says the Government only
released a portion of the panel
s report, in which there was no mention
of them advising to go ahead with the new project.