Govt to temporarily continue NBN rollout

THE Abbott government has set new targets for NBN Co and asked it to continue to roll out fibre-to-the-premises until a review is completed.

MORE than 600,000 homes, businesses and schools across the country still have a chance of being connected to fibre-to-the-premises broadband despite the coalition's vow to abandon the former government's plan.

Many of them will probably miss out, but another 300,000 are guaranteed the service thanks to contracts signed under Labor.

Communications Minister Malcolm Turnbull on Tuesday directed NBN Co to continue rolling out fibre-to-the-premises (FTTP) across the nation under existing contracts "as rapidly and cost-effectively as possible" while a strategic review of Australia's biggest infrastructure project is conducted.

The internal review will be completed by a new board of directors - following Mr Turnbull's request for the resignations of the current board - within 60 days of their appointment.

Construction is due to commence in more than 1.8 million premises within the next year, with each effectively given a categorisation of a green light, amber light or red light under the FTTP model.

Under an interim statement of expectations sent to NBN Co, the green light has been given to 300,000 premises in areas where construction contracts have been signed.

Detailed network design is under way in amber-light areas containing 645,000 premises where FTTP construction work might begin in time, however it's expected many will miss out.

The remaining 900,000 home and business owners will have to wait for the outcome of the internal review as only preliminary network design is underway in their areas.

The premises that miss out on FTTP will likely have to settle for the coalition's fibre-to-the-node (FTTN) plan, where it is expected slower copper lines will journey the final leg to the premises.

Meanwhile, Mr Turnbull said forecasts for the number of premises passed by fibre cable have again been revised down with it expected to be 729,000 by June 30, 2014, 1.74 million by June 20, 2015, and 3.115 million by June 30, 2016.

A 2010 plan forecast 5.65 million premises would be passed by mid-2016.

Mr Turnbull said while they were aiming to set more realistic targets, NBN Co's rollout process would actually be assisted by the use of a wider range of technologies to connect businesses and homes to the network.

"For example, this will allow NBN Co to trial the latest VDSL technology to deliver superfast broadband to homes and businesses in multi-dwelling units such as apartment blocks," Mr Turnbull said.

Mr Turnbull said he intended no criticism when he asked NBN Co board members to offer their resignations last week. All but one have done so.

"That request should not be regarded as any criticism of any of the directors, least of all the chairman Siobhan McKenna," he said.

Federal cabinet will decide the new board, which is expected to include former Telstra chief executive Ziggy Switkowski.

Opposition broadband and communications spokesman Anthony Albanese said the owners of the 645,000 premises who miss out on the FTTP network would be right to feel betrayed.

"This includes people living in Tasmania, who were assured before the election that the coalition would complete the full fibre rollout in that state," he said.