Tasmania to make households opt out of NBN in a bid to boost take-up rates

The decision to connect all Tasmanians to the NBN and make them opt out if they don’t want to pay for the service is what experts have described as a strategy that will help boost take-up of the services and make the roll-out more efficient.

The decision was made by Tasmanian premier David Bartlett yesterday, who announced legislation will be passed mandating the NBN will remain an “opt-out” project for the duration of its construction in the state.

Telsyte research director Foad Fadaghi says the change isn’t a dramatic one in terms of network connectivity, and says “having more people on the network will emphasise the commercial viability of it all”.

“This decision makes sense given that you will have such high broadband penetration with this type of model. Most people would choose to keep that connection anyway, although I’m sure some will choose to opt out anyway.”

“This decision is also much more efficient, in an economic sense as well. If you’re connecting everyone at the same time, then it’s easier and cheaper to do that instead of a patchwork approach. People can change their mind later on and connect, but this will be much more efficient as a whole.”

But the decision is also a numbers game. The Federal Government has been stung with opposition from all sides regarding a lack of a cost benefits analysis, and an opt-out decision will mean a larger take-up rate and may mean more people will decide to keep the service.

Ovum research director David Kennedy says an opt-out model doesn’t change the nature of the network and is being used so the government can use higher take-up numbers as part of its defence of the network’s $43 billion price tag.

“It was never the case that everyone would connect. But it’s fairly clear from the opt-out model there’s going to be much more take-up, and obviously this is what this move is intended to achieve. It’s meant to increase the rate of people using the network.”

“It doesn’t change anything to do with how the network works, it’s just a numbers situation. It’s a policy decision about how they go about insuring the uptake of the network.”

The opt-out model will only apply to Tasmanian citizens, but the decision has prompted a debate about whether such a model could be adopted across the entire country.

“Tasmania will be the most connected place on the planet by 2014, once our unique optic fibre advantage is fully realised,” Bartlett said yesterday. “Our state is already leading the NBN roll-out. We’re also ready to lead the nation again – in finding the most practical and efficient way of connecting our citizens to the digital economy.”

But the decision has been met with opposition from Coalition communications spokesman Malcolm Turnbull, who said in a statement the decision will only make the NBN more expensive.

“If consumers want a fixed line for telephones or internet access they are going to have to use NBN’s line like it or not,” he said in a statement. “The move adds compulsion to Labor’s existing plans to shut down competing fixed line technologies.”

“After a poor initial take-up at NBN trial sites, Premier Bartlett signalled legislation that will force consumers passed by the network rollout to “opt-out” of connecting rather than “opting in”. This means NBN Co. will not require homeowner consent before connecting them to the network.”

Communications minister Stephen Conroy has welcomed the decision and said in a statement the roll-out will now proceed faster than planned.

“The Government welcomes this initiative by the Tasmanian Government. It will enable faster and more efficient rollout of the network and minimise inconvenience to landowners, who will not to have confirm in writing that they want to be connected.”

“It will still allow landowners to opt out of connection should they choose to do so. This initiative would allow fibre to be connected to premises; it does not commit people to taking a service from any of the service providers.”