The House of Representatives Inquiry into the role and potential of the National Broadband Network has heard that commencement of the NBN nearly a year ago in one of the first three pilot rollout sites, the town of Scottsdale in the Dorset area of north-eastern Tasmania, has attracted several computer-based businesses to the township and has assisted in reviving a local economy that was in decline due to the loss of  the meat industry.

 

Mrs Ally Mercer, Sustainable Development Manager of the Dorset Council, told the Committee that prior to the commencement of the NBN, the local community had an internet uptake rate of 18 – 22 per cent.  When the NBN became available on an ‘opt-in’ basis, there was an uptake rate of around 70 per cent.  However, a Committee member had heard that the number of people who have actually engaged with a retail service provider is much lower, possibly as low as 15 per cent.

 

Mrs Mercer said the council had participated in e-health and e-education opportunities and was currently working on a project with the federal department to look at an e-services portal which will be provided by council to host business directories, local community, local attractions and events and e-trip activities.

 

“It will also have forums, garage-sale trails, e-farmers-market type things, virtual museums and, of course, council services”, she said.

 

The Council is also setting up a business innovation centre with a focus on the NBN and on the niche food industry to assist new and existing SMEs in the area.

 

The Committee heard that the ‘opt in’ approach to connecting the NBN had caused some problems, including failure by some landlords to take up the initial free infrastructure installation, with the result that some business and residential tenants had been denied access. It was also likely that some people did not take up the opportunity because they were locked into existing contracts with service providers, and believed it would involve extra expense.

 

The Committee also heard from Andrew Connor, a spokesperson for the consumer action group, Digital Tasmania, concerns about the obligation for Telstra to shut down the copper network, cutting off third-part providers from their exchange. Mr Connor said that the copper network should not be cut off until people have access to an adequate NBN alternative – either fibre or wireless.

 

The Committee is attempting to find out how Australians view the potential of the NBN, including what businesses are planning to do with an improved broadband network infrastructure.

 

Transcripts of its hearings are available at www.aph.gov.au/house/committee/ic/NBN/index.htm