Conroy: OECD report supports NBN

OECD report becomes a political football as both sides use it to prove their case

Communications Minister, Senator Stephen Conroy, has responded to the Organisation for Economic Co-Operation and Development (OECD) report by focussing on its positives.

The report criticised the National Broadband Network’s monopoly status and said it could harm competition and did not have enough certainty.

“As the cost amounts to 3.25 per cent of the GDP, it also entails substantial financial uncertainties,” it said. “While establishing a monopoly in this way would protect the viability of the government’s investment project, it may not be optimal for cost efficiency and innovation.”

But a spokesperson for Conroy tried to focus on the positive aspects of the report and used a statement to promote its case for the NBN.

“The OECD concludes that the NBN has the potential to yield substantial benefits, especially in terms of productivity, and that it will improve internet services for the entire population and promote a fairer competition between private firms on retail services,” the spokesperson said.

“The most recent OECD statistics show Australia is now ranked 17th out of 31 countries for fixed broadband subscribers. Australians also pay more for broadband than most OECD countries.

“Shutting down the copper and HFC networks for broadband is a commercial decision made by Telstra under the Heads of Agreement with NBN Co.”

Shadow Communications Minister, Malcolm Turnbull, used his motion for the 2nd reading of the Coalition’s National Broadband Network Financial Transparency Bill 2010 to used the OECD report as ammunition against the Government.

“Only yesterday the OECD expressed its real concern about the way in which the NBN will close out facilities based competition in fixed-line broadband services,” he said. “The OECD also criticises the government for its failure to conduct a cost-benefit analysis and expressly recommends that the planning and coordination of public infrastructure be improved by independent, rigorous published cost-benefit analyses.”

Click here for the full OECD report summary comments.

2015 State of The IT Channel Survey : IT'S TIME!!! Fill in this year's State of the IT Channel Survey and be in the running to win great prizes. CLICK HERE

Join the ARN newsletter!

Error: Please check your email address.

Tags OECDShadow Communications MinisterOrganisation for economic co-operation and developmentMalcolm TurnbullSenator Stephen ConroyCommunications MinisterNBN

More about BilletworkOECDTelstra Corporation

ARN Directory | Distributors relevant to this article

Show Comments
 

Latest News

12:01AM
Dicker Data unveils new "post-acquisition" logo (Embargo Monday April 20)
Apr 17
NetApp secures $2m supercomputing deal with NCI
Apr 17
Mandatory Disclosure Laws needed to counter lax security attitudes: Symantec
Apr 17
Alcatel-Lucent Enterprise gears for growth following China Huaxin takeover
More News
21 Apr
APJ Progress Spark Conference
22 Apr
2015 Innotribe Startup Challenge
27 Apr
Disruptocon
27 Apr
Disruptocon
View all events