Scrapped broadband subsidy will lead to higher setup fees

26.11.2010
New connections to satellite and WiMAX services currently under government subsidy could cost in excess of $1200 once the Australian Broadband Guarantee (ABG) expires on 30 June next year.

The program, , subsidised the setup cost of internet connections that do not meet metro-comparable broadband speed benchmarks. The department has reviewed the program on an annual basis, with benchmarks adjusted accordingly; current standards stipulate speeds of at least 1024 kilobits per second (Kbps) downstream and 256Kbps upstreamwith six gigabytes (GB) of monthly data quota. The plans must not cost individual customers more than $2500 over three years.

The Department of Broadband, Communications and the Digital Economy this week confirmed the expiry of the Federal Government program for all eligible technologies.

“All currently registered ABG providers’ funding deeds are due to expire on this date, regardless of technology platform utilised,” a spokesperson told in an email.

The subsidised internet plans are largely offered via satellite access from the likes of Optus, HarborSat and iiNet subsidiary Westnet. Internode also offers WiMAX plans under the program to residents in the Coorong, Yorke Peninsula and Riverland/Murraylands regions of South Australia.

A 36-page summary of the NBN Co business case released publicly this week indicates the wholesaler hopes to have an interim satellite solution by June next year, ahead of the launch of two Ka-band satellites in 2015 . The satellites will ultimately serve the three per cent or approximately 200,000 premises not covered by either fixed wireless or fibre connections.