Protect against price hikes, climate change among set of government expectations for NBN Co

The federal government has issued a refreshed set of expectations to the company building the National Broadband Network – its first since winning the election.

Federal Finance Minister Katy Gallagher says the expectations on NBN Co highlight the importance of focusing on network security and resilience. Picture: Martin Ollman

The Federal Government has issued a new statement of expectations to NBN Co – its first under Communications Minister Michelle Rowland, who has called for a reset of the project’s pricing model amid planned price rises.

The government, which says it will retain NBN Co in public ownership for the foreseeable future, has laid our priorities including keeping internet affordable for families while delivering speed and reliability upgrades across the network.

The government had pledged full-fibre NBN access to 1.5 million homes and businesses by 2025 as part of its most recent federal budget.

In a shift from its predecessor, the government in its new statement acknowledges that the NBN will not be able to deliver a commercial return across all delivery areas.

Communications Minister Michelle Rowland. Picture: Britta Campion

“The government recognises that NBN Co will not be able to generate a commercial return in delivering all of its obligations, particularly in regional and remote Australia,” the statement reads.

“It is expected the company will take a flexible approach to supporting these activities, including through contributions from the Regional Broadband Scheme and, where necessary, returns in other parts of its business.

“However, where this occurs, NBN Co will be transparent, demonstrate that its expenditure is efficient and will maintain the flexibility to adopt future innovations and advancements.”

The government says it intends to keep the NBN in public hands “for the foreseeable future”, as previously flagged this year by Ms Rowland.

“This statement sets out the government’s expectation that NBN Co will deliver a world-class service to families, communities and businesses, making for a more connected and prosperous Australia,” Ms Rowland said on Tuesday.

“The statement has a strong focus on NBN Co’s role in ensuring that regional and remote Australia, including First Nations (people), are better connected than ever, as these are priorities for the Albanese government.

“I’m confident the Albanese government and NBN Co can continue to work together to achieve these outcomes.”

The statement also has a focus on network resiliency, including preparing for and responding to bushfires and natural disasters, and climate change.

Finance Minister Katy Gallagher said: “Following recent cyber-attacks on Australian citizens, and with bushfire and storm season well under way, it also highlights the importance of focusing on the security and resilience of our network.”

NBN Co chief executive Stephen Rue. Picture: Britta Campion

An NBN Co spokesman welcomed the new statement of expectations.

“We believe our strategic objective are well aligned with the new statement of expectations, including our commitment to lift the digital capability of Australia, particularly for customers living and working in regional, rural and remote Australia,” he said.

The move comes at a critical time for the telecommunications sector, with the competition watchdog set to rule on a mooted network agreement between Telstra and TPG on Wednesday.

Earlier this year, Ms Rowland wrote to NBN Co asking it to withdraw its pricing proposals, calling them “unacceptable”.