JOURNALIST: The Minister for Finance and Deregulation is Penny Wong. She joins us on the line. Good morning Minister.
WONG: Good morning to you.
JOURNALIST: Nice to be talking to you. Just that point about and its made in a few of the papers this morning the heavily edited 160 page plan. I just wonder why the whole document in its entirety wasnt released?
WONG: Well we did release a very great amount. But as Minister Senator Conroy said yesterday, theres obviously still commercially sensitive information.
Id just make the point that in terms of this kind of body that is a government business enterprise this is a greater level of detail released by this Government than has been released previously in relation to any other government business enterprise or in fact by the previous government. So we are being very transparent because we know this is an issue where people do want to ensure theres a lot of information out there.
JOURNALIST: Senator, can you just answer Lukes grandmothers problem. Shes got a -
JOURNALIST: Its my mother, not my grandmother.
JOURNALIST: His mother, sorry, wheres shes got a dial up system, shes only paying $10 a month. What happens when shes forced to migrate to the NBN?
WONG: The Government has made a commitment that we will continue to make voice-only services available and we will do so at no greater real price than they pay now. So -
JOURNALIST: What about a dial-up modem sort of operation?
WONG: Well this is voice-only services. Obviously, what we are providing is a wholesale service, so a network across the nation to provide broadband at far greater speeds, far greater access to all Australians which we dont have now. What retail providers will do is compete for consumers and offer packages to consumers presumably at a range of price points which is what generally happens in markets.
JOURNALIST: So when shes only paying now $10 a month for this service to access the internet only when she needs to,admittedly on a very slow system, but will she be paying is it likely that she will have to pay more? Youre looking at basic packages of $60 to $70 a month.
WONG: Well what weve said, because remember were a wholesale provider, so we provide the infrastructure. The Government investment, taxpayer investment, provides this national infrastructure which as I said, provides broadband across the nation. Its very important to notice we dont have that now.
JOURNALIST: I know that, but his mothers probably interested in just a really simple thing, shes paying $10 a month. I know youre only setting the wholesale figures but essentially, the thing for consumers is what will I have to pay? Will she be paying more than $10 a month to get her internet access?
WONG: We are only setting the wholesale fee. But its true that our current entry level wholesale package is $24 a month for far greater speeds and access than people currently have. But can I just say on this -
JOURNALIST: So shell be paying more will she?
WONG: If I could finish. It is also sometimes a bit youre comparing apples and oranges because sometimes the fees that you quote dont include other fees and charges. For example, if you hit your monthly limit, they dont include, for example, line rental or access provisions. So Im in a difficult position because I dont actually know what your mums package is, but what I would say is this: it is true, we are offering a product far better than any product that is currently available. And we are offering it across the nation.
JOURNALIST: The point being, shes a pensioner, she can only afford $10, she doesnt care about speed. I guess the big question is for people who are on that fixed income, is there going to be something like a $10 or $15 option where they dont want to be connected all the time. They just want to send their granddaughter in England or someone a quick email. Will that option still exist or is that gone?
WONG: Remember we are providing this network, this infrastructure. There will be other products still available on the market. For example, mobile broadband. So it depends what products are offered by retailers. Wed anticipate, as in any market, youre going to get a range of products at a range of prices catering for a whole range of different price points if people want to pay different amounts.
JOURNALIST: I think what weve established is that youre offering them a much better service. But the point is that a lot of people will have to pay more for it. Thats the bottom line isnt it?
WONG: Well it depends on what you mean by a lot of people. And it also depends whether you think
JOURNALIST: Well take Lukes mother.
WONG: If I can finish. It also depends on whether you think were frozen in time. The reality is if you look over the last decade, Australians desire for more internet speeds has increased exponentially. That desire has not always been met by the market. If you talk to many people, in their working lives, in their studying lives, people will often complain about their access, the speed of access to the internet. So what we are providing is a service that reflects where Australia is moving.
JOURNALIST: Penny, I just got myself an early Christmas present. I bought myself an iPad and its wonderful, I must admit. And Im looking at it right now. Its not tethered to a hole in the wall of course. And Im just wondering to what extent your business case is predicated on people having a fairly low I think around 13 per cent at the moment level of wireless service, when in fact I think this is the greatest growth industry. People will want their wireless service more and more.
WONG: Look wireless service is a good service. It gives you the ability to do what you do, which is to work anywhere, at any time. But wireless is technologically limited in terms of the speed of both download and upload. Thats the reality.
JOURNALIST: Spot on, thats absolutely right.
WONG: So what we are saying is, based on the advice from the experts, is that fibre is the best future-proof technology. What we know is fibre transmits information at the speed of light. Its limited currently only by whats at either end of the pipe if you think of it like that.
This is the sort of infrastructure we need. For example, I sat next to a guy at a dinner the other night. He was telling me about their teleradiology services. So you do a CAT scan or an MRI scan or another scan in a regional hospital. The image is sent back to where the radiologist is presumably say somewhere in Sydney or somewhere in a capital city who then analyses and provides the information back to the hospital. Now to get that kind of service we need better broadband across the country if we want to roll those sorts of innovations in medicine out.
JOURNALIST: And I can see that. But if I go 100 megs and not plus 90 per cent of us can do that when this is rolled out. What will I be able to get in the next year or two that will be or five if you will that will so change my life to make the investment such an important thing for me? I guess Im looking for the what do I get out of it?
WONG: It depends on what you do with it I think. I mean, thats the issue. If you -
JOURNALIST: But I hear people say, Ill be able to download movies. Well I dont want to do that. So what can I get? And I dont need an MRI. So what do I get?
WONG: I hope you dont need an MRI.
JOURNALIST: Thank you Senator.
WONG: But there might be an occasion where for example if you decide that you want to do more study that youll find that having that kind of service enables you to access information at your institution, at your university
JOURNALIST: Cant I do that now?
WONG: Well I think have a talk to many students. I think youd find that its variable, the ability to access all the information people need because people do find that theres generally more information than they want than they can get at the speed that they want.
What we are reflecting as I said, it depends on where you think Australia is going we are reflecting where we are now, which is lagging many other countries, comparable countries. We are reflecting the fact that Australians have demonstrated over the last ten years their desire for greater access to the internet and to these sorts of speeds of accessing information.
We are also reflecting the fact that this is going to be a very important platform for the economy. It is going to be a very important way in which we can do business differently, deliver education services differently and deliver health services more efficiently.
JOURNALIST: Penny, I actually think youre right, its a gamble about what people want in the future. Will it be speed or with the iPad, will it be portability? And I actually think its portability being able to go wherever you want and use the information wherever you are.
WONG: I think its horses for courses, Andrew. I think that portability, were not getting rid of that. There will still be these mobile services available. All were saying is that they are not sufficient for the sorts of substantial economic changes that we know will come with greater access to broadband.
JOURNALIST: Thats right. But it affects whether you can actually turn a buck with the big NBN fixed line system. But can I look, my listeners are going to be really upset, Penny, if I dont take this one opportunity and Ill only ask one.
WONG: The one opportunity!
JOURNALIST: Here we go. Ill ask only one, I swear blind. I know that you must with a sigh of relief have given up this portfolio. But listen, last year you said, and Ill quote you directly: Research shows that this severe, extended drought is clearly linked with global warming. If the drought was clearly linked with global warming what are these floods linked to?
WONG: You know, I always find it interesting the way in which we have a discussion where one fact is pointed at to defy what is a trend. I mean, what weve seen over this century is accelerated warming of the globe. Now you can decide to ignore that.
JOURNALIST: Its not over the century, but keep going.
WONG: It is actually.
JOURNALIST: No its not.
WONG: It is. Theres progressive if you draw a chart from 1900 to now, youll see progressively warming increasing. But more importantly warming speeding up, particularly since mid-century.
Now you can choose to say that the majority of the worlds scientists who have expertise in this area are wrong. You can choose to take that risk. And the consequences of choosing to take that risk are pretty significant.
JOURNALIST: But the drought was linked to global warming and we now have floods. WONG: I dont think anybody ever said that we would never see it rain again. I never said that. I think the point we were making was that -
JOURNALIST: Alright, alright, were going to wrap this up (laughs).
WONG: Its only one question. I just had to respond.
JOURNALIST: (laughs). Well done. Have a very merry Christmas.
WONG: And you.
JOURNALIST: Happy Christmas to you Penny, and thanks for coming on.
WONG: Cheers.
ENDS