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What will NBN WiFi cost residents and local businesses?

9/10/2014

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A member of our local community reported the experience and warning from Kowai near Mackay
whose residents are connected via a tower to phone and internet. They reported that it is essential for each household to have mobile phone in addition to the core service because when there is a power cut you have no phone service. The NBN modem from your aerial requires a power supply, so any household or small business that is reliant on a phone service, and in particular anyone with a medical condition, will need to purchase a mobile phone or purchase a "stand alone" generator for electricity. 

What the NBN should be asked by any requiring a service similar to what a current fixed line delivers at the forthcoming community meeting (and in writing) is what will the cost be to each household of the equipment which will be included as a monthly instalment on the NBN bill for the connection to the tower. 

Our understanding is that this is in excess of $2,000 per household, including equipment and installation in the roof with an antennae on the roof. It would also appear that the NBN have purchased the entire copper network from Telstra and will phase this out forcing all residents to switch to WiFi. Because each tower has a maximum capacity for 400 homes any additional homes or any homes that do not have a clear line of sight will either have no service or will have to connect via the NBN 2 way satellite. this equipment normally costs in excess of $6,000 and again, this amount would have to be included in the bill over a period of time to the householder. The problem for local businesses, such as shops, restaurants and mail order companies who use EFTPOS via the phone, or any other businesses that rely on broadband for a living, they will probably have to seek alternative arrangements because, unlike most towers, such as our mobile tower in Witta, which is supplied by fibre, the NBN towers will supply all data and telecommunications by microwave, where the service will be disrupted during heavy storms, which can last hours. 

Our strong recommendation is that community members seek this information at 4.30pm on Saturday at the NBN meeting, but unfortunately we already have written evidence that the NBN fraternity have refused to answer these questions when previously asked by other communities, including what the minimum speed of broadband would be to each home. Our calculations suggest that it will be far lower than what Witta currently has with ADSL2+. It would also appear that this service will remain static and not improve for the period of the lease agreements which, we understand, are for 20 years.

The net effect of the second rate system that the coalition is giving non-urban environments is that small businesses will have to relocate if they rely on a professional standard of broadband. There are a group of technology businesses in Maleny who require fibre to the premises, as promised by Labour, to even meet their current requirements. This is evidenced by them having to drive off the Range when having to download large media files on a regular basis. 

This is one of Maleny's few growing industries providing much needed revenue from off the Range and providing employment opportunities, especially for our young. There is plenty of evidence that these types of businesses have been forced in the past to relocate to urban environments just to stay competitive. We recommend lobbying to local MPs on this important issue of employment, especially considering the current government's position to young unemployed people where they are directly responsible for inhibiting the world's fastest growing technology sector. 

Anyone with a member of the household who has a critical medical condition and is reliant upon a phone to call emergency services would need to get a response in writing from the NBN that they will either continue the current fixed line or mobile service from the existing exchange that is supplied by fibre or that they will guarantee that they will make provision for a phone connection from the new towers when storms impact on the microwave link to the towers which could last for hours.
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    Various authors from our Witta community

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