NBN delivery rebates still not assured

The Residential Development Council has met with staff from the Office of the Minister for Communications, Malcolm Turnbull, to discuss the findings of the Vertigan Report into the NBN. The Minister is under pressure to release the report and has waited on information from the RDC.

In the meeting the RDC reiterated the importance of the Coalition’s election commitment to a rebate model. This model generates efficiencies by giving developers control over contractors and delivery timeframes, with any net cost to the NBN Co.  passed back to the developer. 

Following the meeting the RDC went to its members to collect data that throws further evidence behind why a rebate is appropriate. Data from members has shown that the price of fibre decreased rapidly in the first few years when developers looking to increase commercial advantage before the NBN was introduced were delivering fibre.

The RDC’s message back to the Minister’s office was that there has been no significant net financial advantage to the developer since NBN was mandated and therefore there is little room for any additional cost recovery and a rebate is an appropriate model.

The RDC is awaiting further advice from the Minister’s office about the Vertigan Report’s release date and the likely policy position from Government.