NBN providers could pass on monthly levy

The federal government wants to charge non-NBN high-speed internet providers a levy to help recover the cost of supplying the NBN to regional Australia.

Australians using superfast broadband in cities could soon pay more than $7 extra a month to help deliver the internet to regional areas.

The federal government on Thursday introduced to parliament draft laws to recover the cost of building and operating satellite and fixed wireless networks.

NBN Co is expected to lose an estimated $9.8 billion over 30 years in providing broadband to regional, rural and remote Australia.

Under the proposal, all carriers will be charged about $7.10 per month per premises connected via fixed-line to subsidise those services from July 1, 2018.

Urban Infrastructure Minister Paul Fletcher told parliament that customers on NBN networks will not experience price rises because the charge is already embedded in NBN's pricing.

"For the remaining carriers, it will be up to these networks to decide whether some or all of the charges are passed on," he said.

Smaller carriers will be exempt from the levy for the first 25,000 residential and small business premises for five years.

The bill would also give the relevant minister the power to change the base amount, based on the advice of the consumer and competition watchdog.

Mr Fletcher says the scheme will provide certainty for regional Australians that their essential broadband services will be available into the future.

It will be subject to a review within the first four years.


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Source: AAP


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