NBN value for money, says Conroy

Communications Minister Stephen Conroy says taxpayers' money won't be wasted in the
rollout of the national broadband network (NBN), but admits the massive project will
not be faultless.
Senator Conroy's comments came as the Senate passed laws separating Telstra's retail
and wholesale arms, allowing it to enter into a commercial agreement with NBN Co to
take part in the $36 billion project.
The minister explained why the government had not agreed to the coalition's call for
an independent cost-benefit analysis after Reserve Bank governor Glenn Stevens told
a parliamentary committee major projects undertaken by the government need to be
properly checked.
"I think you could imagine some projects that the private sector just doesn't feel
it can take the risk on, which the public sector, which after all has a stronger
balance sheet than anyone else, might on some occasion be able to accept that risk,"
Mr Stevens said.
"But there ought to be, of course, a proper cost benefit of that case in those
instances."
Senator Conroy said he accepted Mr Stevens' argument "there should be great scrutiny
and assessment".
He said the government had already undertaken a number of comprehensive analyses of
the project and planned to release the NBN business plan in December.
Parliament this week heard stories of cable-layers tearing up nature strips and
councils concerned about unsightly overhead lines.
Senator Conroy said there had to be a "reasonable tolerance that nobody's perfect".
"We have hired some of the world's and this country's best engineers, best business
people, to oversee and build the national broadband network," he said.
"Does that mean that there won't be ... a hole drilled in a wall where someone
didn't want it, does that mean there's not going to be cables cut as trenches are
dug because they are not marked on maps? No."
Leader of the House Anthony Albanese will discuss the Senate's amendments with
independents and the Greens over the weekend, ahead of the House of Representatives
meeting on Monday to approve the laws.
Other bills relating to the NBN were introduced this week but won't be voted on
until next year.
The Australian Competition and Consumer Commission (ACCC) is expected to give its
thoughts in the first quarter of next year on the effects on competition of the
final agreement between NBN Co and Telstra.
Then a simple majority of Telstra shareholders will be needed at a mid-2011 meeting
to approve the deal, which involves Telstra being paid $13.8 billion by 2020 for the
use of its infrastructure to roll out the national fibre network.
A joint parliamentary committee will oversee the NBN's rollout, reporting every six
months.
Senator Conroy said the legislation not only paved the way for the Telstra-NBN Co
deal but would bring down broadband prices, which in Australia are the fifth highest
in the OECD.
"The legislation will deliver more competition, cheaper prices and more choice and
it will drive new services for Australians," he said.
But Ovum telecommunications analyst David Kennedy said while the legislation would
better protect consumers and improve competition, it was unrealistic to assume
prices would fall quickly.
"This is not overnight change - this is something that will take some time to flow
through the system," he said.
"We are encouraged by the progress made today in the Senate," a spokeswoman for
Telstra told AAP on Friday.
"Our position remains that on balance we support the passage of the bill because it
delivers greater certainty as we work towards finalising definitive agreements."
Telstra is expected to make further comment on Monday, pending the House of
Representatives passing the bill.



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