The federal government's downplayed an international study which claims the benefits of the national broadband network (NBN) have been grossly overstated.
Fairfax newspapers say the study was released in London before the vote today on legislation enabling the NBN, and found the evidence to support claims made for fibre-to-the-home networks is "surprisingly weak" and cites Australia as a key example.
The study also accuses the federal government of misusing research to build the case for the NB.
News that makes sense
Your trusted source for staying up-to-date with the world around you. Get free daily news updates and analysis, straight to your inbox.
But Labor parliamentary secretary Mark Dreyfus says its just one report which overlooks the importance of "really significant" micro-economic reform, and he's not concerned.
Libs on attack
But federal Liberal MP Paul Fletcher, who's a former Optus executive, says the expensive NBN was hastily designed in early 2009 to replace a 4.7 billion dollar policy Labor took to the 2007
election.
Opposition Leader Tony Abbott, who plans to hold a community forum in western Sydney on Monday evening, said voters did not want Labor's proposed national broadband network (NBN).
"Everyone wants better broadband - the question is should the federal government be spending $40 or $50 billion of ultimately taxpayers' money to put wires into every household when we've got
clogged roads, we've got railways that aren't working properly, we've got hospitals that aren't functioning properly," he told Macquarie Radio on Monday.
"I certainly want my computer to work effectively, but I'm far from convinced that the people of western Sydney, for instance, think that putting a wire into their house so that their computer
is chained to the wall, so to speak, is more important than fixing up the transport mess."
Xenophon could block key component
Meanwhile, key crossbench Senator Nick Xenophon says he will block key national broadband network (NBN) legislation in 2011 because it would allow special treatment for Telstra.
The government introduced a bill into the lower house earlier in November, which sets out the services NBN Co can supply.
Labor argued the transparency measure would establish "clear open access", which would stop the company building the network from discriminating between access seekers.
But NBN Co will be allowed to negotiate varied terms and conditions, although only with Australian Competition and Consumer Commission oversight.
South Australian independent senator Nick Xenophon said this provision would allow a special deal for companies such as Telstra.
"These clauses will allow NBN Co to discriminate when it comes to pricing and could very easily end up reinforcing the market domination of the current players, especially Telstra," Senator Xenophon said in a statement on Monday.
Unless changes were made, Senator Xenophon said he would vote against the Telecommunications Legislation Amendment (National Broadband Network Measures - Access Arrangements) Bill 2010 when it goes to the upper house in February 2011.
A separate bill to structurally separate Telstra's wholesale and retail arms will be voted on at a special sitting of the lower house on Monday.
The legislation is expected to pass, and includes transparency measures negotiated in the Senate between Labor and Senator Xenophon.
