NBN New Developments Committee update

NBN New Developments Committee updateThe Federal Government’s new Telecommunications Infrastructure in New Developments Policy is currently being finalised, however some new charges have already come into effect while others have been deferred. Earlier this year the Property Council successfully lobbied for the Federal Government to delay additional backhaul and NBN charges for new housing developments and reconsider deployment charges. As was argued, new housing developments require long lead times and detailed financial planning to get off the ground. These changes provide greater certainty on the potential costs for future developments. According to the Department of Communications, the following changes are effective 1 March, 2015: Deployment charges on a per lot/premise (MDU $400, SDU $600) basis will apply to all new developments approved by NBN Co on or after 1 March; Deployment charges will not apply to developments approved by NBN Co before this date, or for those covered by pre-existing Developer Agreements prior to 1 March; Charges for backhaul and end-user connection will come into effect from 1 July, 2015; Meetings with the Minister’s office indicated that those projects lodged before March 1 would not incur the deployment charges and this is being considered. Further advice will be forthcoming to Property Council Residential members. The changes to the policy announced give the industry more time to adjust to the new requirements and allows for any areas of excessive costs for backhaul to be identified for resolution. However, there is still significant uncertainty around NBN Co Transit Network coverage. Members are encouraged to contact NBN Co directly to determine the proximity of their project to the Transit Network, and consider any additional costs. It has been noted that the majority of developments fall within the transit network, and should therefore incur minimal to no costs. Any issues around potential backhaul cost should be forwarded to RDC to take up with NBN Co and the Government. A working group will also be convened to discuss build-transfer models for infrastructure and refinements to the pit and pipe specifications.