NBN ISP warns of $4000 connection fee after election

AusBBS takes advantage of NBN confusion ahead of election

An NBN internet service provider is warning customers they could be hit with a $4000 fee for Fibre-to-the-Home if they don’t connect before Saturday’s federal election.

AusBBS is urging customers “to connect today” and warns even customers already passed by the roll out could find themselves with a hefty bill when they decide to connect, should the Coalition win.

The Coalition has stated that it intends to scale back Labor's NBN Fibre-to-the-Home plan and replace it with Fibre-to-the-Node - leaving customers to make the connection from node to the premise at their own cost.

“Currently NBN Co will install a fibre optic cable right into your home for free,” an AusBBS release states. “After next Saturday you may have to pay a fee and there are rumours that it could be up to $4,000 or more."

“If you are lucky enough to live in an NBN active area don't take the risk, connect today.”

The company statement has also offered to pay the termination fees on current contracts if you sign up to an unlimited plan.

Communications minister Anthony Albanese said customers already connected would be left to battle on with last century’s copper technology or have to fork out much as $5,000 to connect to superfast fibre.

“A senior member of Tony Abbott’s frontbench has admitted that if you are already connected to Federal Labor’s National Broadband Network (NBN) and there is a change of government next month, then count your blessings because you will be amongst “the lucky ones,” he said.

“Australians face a clear choice: they can vote for the future and fibre under Labor or the past and copper under the Coalition.”

Oppostion communications spokesperson Malcolm Turnbull did not respond to ARN’s questions.

Independent telecommunications consultant Paul Budde told ARN that those who want Fibre-to-the-Home and are not already connected would pay between $3000 and $5000 under the Coalition government.

“What the Coalition proposes is a second class system for less money,” he said. “They agree that Fibre-to-the-Home should be the end solution but so far there are no plans for that.

“At this stage they simply indicate that those who don’t get it and want it, will have to pay for it.”

Budde also questioned using copper for the last mile under the coalition’s cheaper Fibre-to-the-Node plan and said that much of the 40-year-old copper would have to be upgraded.

“Malcolm Turnbull has said many times that eventually we need to go to Fibre-to-the-Home,” he said. "How much money do you want to spend for an interim solution when in five or seven years time we have to spend the money anyway?"

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Tags 2013 federal electionpaul buddeMalcolm TurnbullCloudnbn coAnthony AlbaneseAusBBSNBN

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12 Comments

Abel

1

Protect News Ltd's long term income sream at any costs.
Welcome to Australia ruled by a Vichy Government. The pen is mightier than the sword, especially given free reign to mqanipulate and deceive over decades. Australia will be a conquered vassal state.
Poor fella Australia.
But then we are dumb enough to vote for subservience to the Great Deceiver anf the Prince of Liars

Tom Piotrowski

2

Interesting. When you visit AusBBS website and follow onto "About Us" page you will see that Chairman, CEO & Founder and Director of Technology are all ex OzEmail "gang" or colleagues of Malcolm Turnbull. Is this an example of insider trading?

Malcom probably wants your money

3

"ex OzEmail gang" You think there is any love lost. I don't.

Probably all but the 3 biggest ISPs want FTTP, they just don't see the point of getting into the discussion. They can't change government policy, so what's the point.
If a telco company does not own copper or infrastructure, they want FTTP. It's good for them, us and Australia.
It's great AusBBS is giving people the heads up on possible future charges in the coalition win.

Sick of the lies

4

This is actually an outright lie, if an area has already been included in the current rollout, no change of government is going to affect the installation of FttH to that address.

Contracts have been signed and areas slated for delivery will indeed be connected to fibre. To alter this would entail sovereign risk.

The ACCC should act on this blatant mistruth.

Tom Brown

5

Mr Sick of the lies
The article stated that existing contracts would be honoured if you had bothered to read. The areas currently being rolled out are not safe unless you have been offered and accepted the NBN i.e. a contract.

If you are not contracted then it is up in the air and there have been plenty of efforts by Abbot and Turnbull and as it appears, Telstra, to delay delivery.

Maybe this is how Abbott plans to make the budget balance.

John Evans

6

So if you manage to get locked in to a contract before the election then you avoid payment - meaning the rest of us have to subsidise you either with our taxes or with higher fees. Well let me ask all of you pro-NBN people - why should the rest of Australia each pay thousands of dollars per-person in tax (money we desperately need for the NDIS and education improvements) just so that you can download movies or "surf" at high speed? Most of us would be happy with good ADSL speed for years to come - speeds that can be provided by the Coalition's FTTN at a much lower cost (and it can be upgraded to FTTH as and when needed).

George Roberts

7

"and it can be upgraded to FTTH as and when needed"

At what cost John Evans? What of the "waste" associated with installing 10s of thousands of refigerator sized cabinets all over the country that will no longer be needed once we upgrade to FTTH? What of the ongoing (huge) cost of maintaining the deteriorating copper network?

I think if you look a little deeper, you'll find the 3rd rate FTTN ultimately costs us all a whole lot more than doing it once, doing it fight, doing it with fibre...

Tom Brown

8

Dear John
Yes if you get your NBN before Abbott and Turnbull you will be getting something for the taxes A and T will be charging everyone anyhow. Though I would guess A&T are too pussyfooted to embark on a project of this forward thinking (relatively) and would throw an election to get Labour to get these projects going. Historically this has always happening, even when in the 2nd world war the coalition gave Labour the government, no election, the coalition were busy trying to give away half of Australia to the Japanese to sure up their position. Coalition are good at the vote winning crime and roads policies.

If the user pays for the last mile then many users will not pay for fibre. This results in the net reducing of profitability of the system, a net increase in the cost for those who need fibre for business. For ehealth and education it will increase the tax cost of those services and John, you will pay more one way or another with A & Ts plan.

Labours NBN has the price and cost advantage of knowing there will be a full uptake in each area within 12 months of release. The old copper removed from the areas and exchanges decommissioned or repurposed. For this reason projections of income can be reliably made, deployment monitored and the project self funding after the initial injection to Telstra and the POI's.
A&T have no such guarantee and who knows how long the dual system will totter along and how much the taxpayer is going to be out of pocket topping up the Telstra service for the service level guarantee..

mortan

9

Spare a thought for the people in my street all the holes and pegs, front lawns dug up red plastic barriers everywhere and they have walked away.

B836

10

Funny reading the political debate remotely, I'm in Singapore on Fibre to the home 200mb down 100mb up...(up to 1gb available) just finished 2 HD Video conferences, 2 webinars yesterday, multiple phone lines, PC's remotely backed up and cloud based apps like Salesforce that are actually responsive and of course after work IP TV direct from the States & the UK ...$70 per month

Of course i'll be shot down here by the "you can do that over DOCSIS, FTTN, VDSL, 4/5/6/7G" etc etc...I assume the thinking was the same when the M4, M5, Lane Cove tunnel etc was built with 2 lanes?

If you remove the politics, what Australian businesses really need is a leap frog in productivity delivered by infrastructure that collapses costs, removes the geography challenges (both within Oz & externally) and delivers services to compete on the world stage...Australia has strategic value around services and the world is getting smaller folks!

As an Australian, Its a shame to see such "Country defining" initiatives caught up in 2 bit politics when we all know that build it once & properly is the way to go regardless of which Party is voted in

Derek

11

No one will pay connection fees if they contract, it is a total beat up. Even with FTTN it is in the providers interest to connect your house so somebody else doesn't. They lock you in for x years. And it is totally in Rupert's interest to have NBN, they get a free transmission network and don't have to maintain their cable network.

Nathan

12

John Evans wrote: "why should the rest of Australia each pay thousands of dollars per-person in tax"

NBN isn't paid for with taxes. The funding comes from government bonds and the money is paid by investors. Investors are paid back from subscription fees (i.e. user pays). It's more like a business loan.

Stop the fibbing about "taxes taxes taxes". Taxes went *down* under the 6 years of Rudd/Gillard. NBNco does not use taxes. NBN took $30 billion in investor money, backed with government bonds. Turnbull proposes $29 billion in government bonds to pay for FTTN. That's the same funding model both ways. Only with NBN we get 1000/400 for 93% of Australians, and with Turnbull we'll hopefully get 25/4 for 73% of Australians.

FTTN is a waste of money. Better off doing nothing, and simply trying NBN again in 2016.

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