Innovative Uses of Broadband by Local Government in Australia

Innovative Uses of Broadband by Local Government in Australia Discussion Draft The State of the Regions report for 2005-06 states It can be said that, as a driver of economic development in the 21 st century communications infrastructure is as important as roads and railways were in the 19 th century. Version 1.0 Report Rick Molony National Broadband Adviser local government 30/06/2006

Issue Date: 30 June 2006 Author Rick Molony Status This document provides a snapshot of how local government has promoted broadband access and uptake by its communities. V.0.9 is a discussion draft circulated for comment and correction. It is has been compiled based on background research by ALGA and by extensive online research but the report does not provide a complete coverage of all the ways local government have contributed to the uptake of broadband in Australia. ALGA welcomes feedback, suggested additions to the report and corrections if required. Document Storage The document can be downloaded from the Broadband Special Interest Group section of the LG Connect website: http://www.lgconnect.gov.au/index.php?node=844_843_206

Table of Contents Executive Summary... 1 1. Understanding Local Government... 3 Diversity of local government in Australia... 4 Councils own need for broadband... 7 Local government s ability to support broadband rollout... 7 2. Background... 8 Networking the Nation... 8 3. Innovation at the whole of State and Territory Level... 9 Local Government Association of Queensland (LGAQ)...9 Local Government Association of Northern Territory (LGANT) NT Connect Project... 9 Municipal Association of Victoria (MAV) Wired Development project... 10 4. Community Owned Telcos... 11 eburnie... 11 Community Telco's based on the Bendigo Model... 11 CountryTELL (Murray Regional Development Board)... 13 New England Smart Communities Action Project (NESCAP)... 14 Networking the Northern Rivers - Norlink Communications Ltd... 15 Southern Phone... 15 5. Major Infrastructure Projects... 17 6. Local Government driving Broadband Demand projects... 19 New South Wales... 19 Northern Territory... 20 Queensland... 20 South Australia... 22 Victoria... 22 Western Australia... 23 Community Development... 27 7. Other Innovative use of Broadband by councils... 28 Strategic Planning... 29 Infrastructure Planning... 29 Service Delivery Innovation... 31 Integrating Public Libraries... 31 Underground Cables and Fibre Network... 32 VoIP... 32 8. Broadband Roadmap... 33 How to move forward?... 34

Executive Summary The Australian Government has the primary responsibility for telecommunications policy in Australia including establishing a regulatory regime to oversight commercial providers of telecommunications services. The government has encouraged competition and has taken a technology neutral stance believing that a competitive market will best provide affordable broadband services. The Australian Government has been active in areas of perceived market failure especially in regional Australia. It has provided substantial resources to improving telecommunications in regional Australia through programs like Networking the Nation, HiBIS, Coordinated Communications Infrastructure Fund and the Demand Aggregation Program. State and territory governments have also invested significant resources of their own in establishing broadband networks and promoting the uptake of broadband services for economic and social reasons. The role of local government in promoting and securing broadband access for their communities has not received as much attention in the mainstream media. As this report shows nearly all successful implementations of broadband programs that involve the wider community in regional Australia have been undertaken with the cooperation, and often the leadership of local government. Over the last eight years local government has developed significant experience and expertise in undertaking innovative projects to bring broadband technologies to their communities. This report provides many examples and case studies of how local government has acted as innovators in helping their communities obtain adequate broadband access. Local government with funding and support from the Australian Government and from state and territory governments has committed substantial resources in infrastructure investment, staff resources, and community consultation and education activities to help their communities understand the value and benefits of broadband. Local government has been involved in many different areas of broadband including: Establishing regional community telcos Using broadband to share back office systems or provide access to Application Service Provider solutions at the whole of state or territory level Obtaining funding for broadband infrastructure rollout by helping develop a business case for obtaining broadband for their communities Participating in partnerships with other councils, regional development boards, health and education agencies to obtain broadband Developing strategic visions for their council or region which identifies obtaining broadband as an essential element in their economic development Developing innovative approaches to regulating the rollout of broadband in greenfield estates Local government has demonstrated in all states and territories leadership, drive and commitment to obtaining and effectively using broadband. Some councils have committed very substantial amounts of time, resources and expertise to undertaking world leading projects such as e-burnie, the Bendigo Community Telco, CountryTELL, NESCAP, Northern Rivers, and Southern Phone. Australian Local Government Association 30/06/2006 1

These projects show that local government is both innovative and in touch with their communities needs and expectations. The projects have also shown how funding from the Australian and state and territory governments have enabled these innovative telecommunications infrastructure projects to be undertaken. The Australian and state and territory governments can best achieve their own policy outcomes through effective partnerships with local government. This report also shows that there has not been a consistent and coordinated effort to take the successes outlined in this report and help replicate them across regional Australia. Funding has usually been reserved for competitive grants schemes and not enough funding has been reserved to take the successes of these competitive grants projects and duplicate them nationally. Local government involvement in broadband projects offers both the Australian and state and territory governments the ideal opportunity to trial innovative approaches and identifies successful outcomes that are of national importance. Funding is needed to build on the successful outcomes discussed in this report and help transfer the learnings from these projects across the local government sector. Broadband itself is not the goal; it is the enabling infrastructure which will enable councils to help improve the economic, social and environmental life of their communities. Australian Local Government Association 30/06/2006 2

1. Understanding Local Government Local government in Australia delivers a wide range of services to its local communities and it is important to understand these services and the role of local government in order to have an accurate understanding of how local government uses broadband and promotes the use of broadband by its communities. There are 673 councils in Australia which are members of the Australian Local Government Association (ALGA) which represents local government on key crossjurisdictional committees including the Council of Australian Government (COAG) and the Online and Communication Council. The population and geographic size of councils differ greatly. The largest local government authority by population is the Brisbane City Council with 900,000 residents. The average council population is 26,400. The largest council by area is the Shire of East Pilbara in WA covering 379,000 square kilometres (population 7,000). There are over 430 rural and remote councils with a population of less than 20,000 people and over 270 councils with a population of less than 5,000 people. 1 In 2003-04, local government's total revenue was $20.3 billion received from taxation, fees and user charges, plus grants and subsides from the Commonwealth, state and territory governments. The major sources of revenue were: Municipal rates which are the sole source of taxation revenue for local government provides revenue of $7.7 billion or 37.8% of total local government revenue Fees and user charges which raise $6.2 billion or 30.5% of total local government revenue 2 Figure 1 shows the major areas of local government expenditure: Figure 1: Local Government Expenditure 3 1 http://www.dotars.gov.au/localgovt/publications/national_report/03_04/appendix-f.aspx 2 http://www.alga.asn.au/policy/finance/finfax/3.revenue.php 3 http://www.alga.asn.au/policy/finance/finfax/1.finance.php Australian Local Government Association 30/06/2006 3

Over the last 35 years there has been a significant shift in local government expenditure and by 2003-04, $8.5 billion or 46% of total local government expenditure was on human services such as health, social security and welfare, housing and community amenities and recreation and culture activities. 4 The range of services local government now provides is extensive and includes: engineering services (roads, bridges, footpaths, drainage) community services (aged care, child care, fire prevention and fire fighting) environmental services (waste management, environmental protection) regulatory services (buildings, restaurants, animals) cultural services (libraries, art galleries, museums) 5 The types of services provided by local government has changed substantially over the last 35 years with local government increasingly providing human services at the expense of its traditional property based services. 6 Diversity of local government in Australia The tables below show the large number of urban and regional, rural and remote councils that represent small numbers of people and in consequence have a very limited capacity to pay for essential broadband communications. Table 1: Urban Councils organised by number of people in each council State Definition NSW Vic. Qld WA SA Tas. NT Total Urban Capital City Capital City 1 1 1 1 1 1 1 7 Urban Development Small Urban Development Medium Urban Development Large Urban Development Very Large Urban Regional Small Urban Regional Medium Up to 30,000 people 30,001-70,000 70,001-120,000 3 1 0 12 2 0 0 18 15 2 1 3 7 0 0 28 6 9 1 2 5 0 0 23 >120,000 8 10 1 1 0 0 0 20 Up to 30,000 12 12 21 7 7 5 4 68 30,001-70,000 21 8 3 3 0 3 0 38 4 http://www.alga.asn.au/policy/finance/finfax/2.expenditure.php 5 Source: Commonwealth Grants Commission - Review of the Operation of the Local Government (Financial Assistance) Act 1995, June 2001, page 7. 6 Source: Commonwealth Grants Commission - Review of the Operation of the Local Government (Financial Assistance) Act 1995, June 2001, page 54 Australian Local Government Association 30/06/2006 4

State Definition NSW Vic. Qld WA SA Tas. NT Total Urban Regional Large Urban Regional Very Large 70,001-120,000 2 3 3 0 0 0 0 8 >120,000 3 1 6 0 0 0 0 10 Urban Fringe Small Up to 30,000 0 1 23 1 1 1 1 28 Urban Fringe Medium 30,001-70,000 Urban Fringe Large 70,001-120,000 Urban Fringe Very Large 3 3 4 3 2 0 0 15 1 3 1 5 0 0 0 10 >120,000 7 3 0 1 1 0 0 12 There are approximately 114 urban councils in 2003 having a population of less than 30,000 people. 7 Table 2: Rural and remote councils with less than 20,000 people RURAL COUNCILS NSW VIC QLD WA SA TAS NT Total Significant Growth Rural Significant Growth (RSG) 0 1 4 8 0 0 0 13 Sub-total 0 1 4 8 0 0 0 13 Rural Agricultural Rural Agricultural Small (RAS) 5 0 7 52 10 2 0 76 Rural Agricultural Medium (RAM) 38 0 26 18 11 3 0 96 Rural Agriculture Large (RAL) 27 8 14 2 10 9 0 70 Rural Agricultural Very Large (RAV) 18 12 14 2 11 5 1 63 Sub-total 88 20 61 74 42 19 1 305 Rural Remote Rural Remote Extra Small (RTX) 3 0 4 6 4 0 28 45 Rural Remote Small (RTS) 0 0 8 2 0 0 21 31 Rural Remote Medium (RTM) 1 0 9 7 1 0 9 27 Rural Remote Large (RTL) 1 0 4 6 1 0 0 12 Sub-total 5 0 25 21 6 0 58 115 Total 93 21 90 103 48 19 59 433 7 2003-2004 Report on the Operation of the Local Government (Financial Assistance) Act 1995 APPENDIX F - AUSTRALIAN CLASSIFICATION OF LOCAL GOVERNMENTS http://www.dotars.gov.au/localgovt/publications/national_report/03_04/appendix-f.aspx Australian Local Government Association 30/06/2006 5

Significant Growth- An LGA with population less than 20,000 Rural Significant Growth (RSG) - Average annual population growth more than 3 per cent, population more than 5,000 and not remote Agricultural - An LGA with population less than 20,000 and Population density less than 30 persons per sq km RAS - Small - population up to 2,000 RAM - Medium - population between 2,001-5,000 RAL - Large - population between 5,001-10,000 RAV - Very Large - population between 10,001 and 20,000 Remote - Less than 90 per cent of LGA population is urban RTX - Extra Small - population up to 400 RTS - Small - population between 401-1,000 RTM - Medium - population between 1,001-3,000 RTL - Large - population between 3,001-20,000 Australian Local Government Association 30/06/2006 6

Councils own need for broadband Unpublished research conducted by the Municipal Association of Victoria has identified that rural councils in Victoria have between 4 and 40 council supported sites (offices, depots, libraries etc). Many of these depots are outside the reach of ADSL solutions in regional Australia. Councils also make very substantial contributions to public libraries in Australia. An unpublished draft Australian Library, Broadband Network, Scoping Study, competed in October 2005 for the National Broadband Strategy Implementation Group, Digital Content Working Group found that in Australia there are approximately 500 local government public library services with 1,500 library locations. Local government funds approximately 80% of the cost of these public libraries. Obtaining broadband access for public libraries is essential and councils often coordinate and fund access by public libraries to broadband networks. A national survey of public libraries was undertaken as part of the scoping study and based on the survey results, over 70% of Australian local library services have a bandwidth below 2 Mbps (includes dial-up, ISDN and ADSL). Local government contributed over $841.9 million in 2000-01 towards cultural activities in Australia (approximately 18% of total government expenditure). 8 Local government supports many cultural organisations and museums across Australia and often contributes substantially to the broadband costs for these organisations. Local government s ability to support broadband rollout Local government on some occasions has addressed market failures by meeting the telecommunications needs of its community itself. Local government has a very limited capacity to contribute to new responsibilities and there is considerable evidence that local government is facing a financial crisis. Three major reports the Commonwealth Grants Commission review of the Local Government (Financial Assistance) Act 1995, the Fair Share report, and the Rising to the Challenge Report 9 have provided extensive evidence that many local governments, especially those in rural and remote Australia are in significant financial trouble and part of this is as a result of other spheres of government cost or responsibility shifting on to local government. The Fair Share report, released by the House of Representatives Standing Committee on Economics, Finance and Public Administration in October 2003, highlighted the extent of cost shifting noting that it was already costing local government between $500m and $1.1 billion per annum. It also outlined the growing frustration amongst councils that programs such as these call them into areas in which they are not familiar because they are keen to ensure their communities do not miss out. 8 http://www.dcita.gov.au/swg/publications/cultral_funding_three_tiers.pdf#search= 'cultural%20funding%20in%20australia' 9 A Report produced by the Financial Sustainability Review Board in South Australia (August 2005) Australian Local Government Association 30/06/2006 7

2. Background In order to understand the activities of local government in using and promoting broadband access it is necessary to understand how and why local government first became involved with broadband. Networking the Nation Under the $321 million Networking the Nation (NTN) program local government in regional Australia was actively encourage to participate in applications 'to improve access to telecommunications infrastructure and services in their regions...'local councils were identified as being 'in an ideal position to understand their own communities' unique needs and develop proposals that meet those needs for consideration by the independent Networking the Nation Board.' 10 The NTN Board conducted 12 funding rounds and considered over 2000 applications. It committed around $321 million in funding to a total of 762 projects. Examples of local government involvement in NTN projects Councils and regional development organisations working with local government were successful in obtaining NTN funding from the first round of grant applications. For example by March 1998: Bass Coast Shire Council in Victoria had received $250,000 in funding to provide an advanced wireless access telecommunications network Riverina Regional Development Board of New South Wales received $48,000 to identify telecommunication needs Spencer Regions' Development Association of South Australia received funding of $435,000 to develop the Spencer Access Network to provide affordable Internet access All the community owned telcos discussed in Section 4 below were initially funded under the NTN program. 10 http://www.lgfocus.com.au/editions/1998/march/gold/net.shtml Australian Local Government Association 30/06/2006 8

3. Innovation at the whole of State and Territory Level The $45 million Networking the Nation Local Government Fund helped fund whole of state or territory projects. The LGANT project discussed below included a sizeable communication element although most of the projects funded under this program were IT projects. However, some Local Government Associations have been active in working with their councils on broadband related projects. Local Government Association of Queensland (LGAQ) LGAQ has developed a model for Queensland councils to access a centralised financial package under an ASP arrangement. As part of this project, LGAQ and the Blackall Shire Council aggregated the local demand for broadband and were able to entice Telstra to provide Blackall with broadband services. However, it appears that this success was a one off as Telstra has since placed additional conditions on broadband roll outs in small communities. Other Councils have investigated opportunities for working with the state agencies that have or need broadband as a way to have broadband infrastructure installed for the local council and its community. To date there has not been any installations; however this strategy will continue to be pursued throughout 2006. LGAQ has also focussed on extending the service delivery capabilities of local government to the community as another means for increasing the demand for broadband and therefore encouraging connectivity within their community. In a similar vain, LGAQ is also developing an ASP arrangement for library software as a means of increasing the local demand for broadband. Local Government Association of Northern Territory (LGANT) NT Connect Project The LGANT NT Connect project was supported by DCITA under the NTN program. NT Connect aims to improve the online capabilities of councils in the Northern Territory. NT Connect has assisted with the development of Internet sites for local government and has upgraded data connectivity in participating sites. Where ISDN is available to NT Councils, LGANT has arranged connection to Council administrative sites, and each Council received a 2-way satellite. A significant element of the NT Connect project has been to select and deploy a common business system for NT Councils with a view to: improving financial & operational management meeting the changing regulatory environment supporting moves towards resource sharing creating an environment where effective support can be provided To ensure the sustainability of the infrastructure developed as part of NT Connect, LGANT is actively pursuing other government agencies to join the network. This activity will continue into 2006. Australian Local Government Association 30/06/2006 9

Municipal Association of Victoria (MAV) Wired Development project In August 2003, the Cities of Melton, Wyndham, Whittlesea, Cardinia and Casey together with MAV executed a 'Collaborative Venture Agreement' to help coordinate the provision of broadband infrastructure in new housing estates in Melbourne's fringe suburbs. In October 2003 MAV released a Request for Expression of Interest for a MAV Wired Development. The MAV ROI grew out of a City of Whittlesea project that began in 2001 when the City of Whittlesea changed its planning regulations to require the rollout of telecommunications conduit in new estates (Greenfield developments). The changes were designed to make the deployment of broadband -especially fibre-to-the-home (FTTH) more attractive by allowing telecommunications companies to licence council owned pit and pipes or open access conduit. 11 After completing the EOI stage MAV sought funding assistance from the Victoria and Australian governments. With assistance of VicUrban and MMV a pilot project was begun in the Aurora Estate in Epping North in 2005 where the developer has undertaken to have FTTH rolled out into the estate. Part of the pilot project will see the development of a conduit access agreement for telecommunications providers. 12 Throughout 2005, the Municipal Association of Victoria has worked closely with councils to encourage them to participate in both Australian and Victorian Government programs. They have also focussed on the improving the level of understanding within councils as to what role local government has in bringing broadband to their communities. MAV is also working with Multimedia Victoria in developing a strategy that will allow councils to piggy back on the back of SmartOne the state government project that is rolling out broadband fibre optic to all Victorian schools. 11 http://www.mmv.vic.gov.au/broadband/impactoflocalgovernmentplanninginitiatives 12 http://www.mav.asn.au/ca256c2b000b597a/origdoc/~78ca2c2080fb9a5fca256d560074e83b?ope ndocument&1=10-none~&2=33-wired+development~&3=~ Australian Local Government Association 30/06/2006 10

4. Community Owned Telcos The most substantial investment of time, resources and leadership has been by local government in the development of community owned telcos. All the telcos discussed below would not have been possible without a very substantial commitment by the councils themselves. eburnie The Burnie City Council in Tasmania has been active in providing broadband access to its communities for a number of years. With the assistance of $1.5 million of NTN funding the Council developed an Integrated Community Network (ICN) in 1998 which was designed to provide affordable broadband to businesses and residences. 13 The project established as eburnie was designed to 'provide world-class communication capabilities to the Burnie community. The project deployed new fibre optic based 'last mile' infrastructure with a fibre to the kerb model. Under the project four main points of presence have been established. 14 Continued rollout of the fibre network has been funded through its normal capital works program. 15 eburnie Connect was granted a Carrier Licence in September 2004 after completing a wireless trial begun in January 2004. 16 In Sept 2005 a new broadband over power lines initiative began in Bernie as the first test of this new technology in a city in regional Australia. The project is being undertaken by Aurora Energy and Mitsubishi Electric. 17 The trial was only possible because of the decision by Burnie City Council to install optic fibre in the city. Community Telco's based on the Bendigo Model The Bendigo Community Telco discussed below has since become the model for other community telcos. Bendigo Community Telco (BCT) The BCT was the first regional community based telco established in Australia and was launched in August 2000 and is based on the Community Telco Model. 18 The City of Greater Bendigo Council was an active supporter of BCT and worked with commercial partners to develop the BCT. The BCT has been listed on the Bendigo Stock Exchange and announced that total revenue grew 27% from $12.1 to 15.4 million in 2004/05. 19 Community Telco Australia (CTA) An outcome of the success of the BCT was a decision to extend it to other essential services and extend to other parts of regional Australia under the Community Telco Australia banner. CTA is a Bendigo Bank subsidiary. The model is based on aggregating 13 http://www.burnie.net/html/934_940.htm 14 http://www.eburnie.com.au/html/default_what.htm 15 http://www.burnie.tas.gov.au/html/34-35_serviceimprovementsthroughinnovation.pdf#search='eburnie%20connect' 16 http://www.icn.net.au/html/default.htm 17 http://www.auroraenergy.com.au/news/news.asp?file=6-december-2005.txt 18 http://www.telinfo.gov.au/new%20connections%20tk%20pt2%20bendigo.htm 19 http://www.bendigotelco.com.au/index.asp Australian Local Government Association 30/06/2006 11

the demand of communities for telecommunications services as a way to improve the services provided for the community. The model establishes a locally-owned entity which enters into a strategic partnership with a reputable telecommunications carrier. AAPT and Bendigo Bank are the joint owners of CTA. 20 Sunshine Coast Community Enterprise (SCCE) Established under the CTA model the SCCE is a 100% community owned Telephone Company as a franchise of the Bendigo Bank Group. 21 Ballarat Community Enterprise The BCE is based on the BCT model and is a CTA supported project. The aim of the BCE is to enhance community prosperity by capturing some of an estimated $200 million that is spent on telecommunications each year in the Ballarat region using a 'collaborative buying group'. The BCE sees part of its role in encouraging and education the community about the benefits of broadband for business and the broader community. 22 itel Community Telco ITEL is an Internet and Telecommunications company that has the support of local councils and the community that is based on telecommunications bulk buying. 23 Inspired i-land Community Enterprise A project is underway in Launceston to establish a Community Telco as a franchise of the Bendigo Bank Group. 20 http://www.communitytelco.com.au/ 21 http://www.scct.net.au/community%20benefit.htm 22 http://www.ballaratce.com.au/community/ 23 http://www.itel.net.au/default.asp Australian Local Government Association 30/06/2006 12

CountryTELL (Murray Regional Development Board) Established by the Murray Regional Development Board (MRDB) which includes 17 NSW and Victorian councils, the CountryTELL project delivers broadband, VoIP and CDMA services to Albury and Wodonga residents. The project began in 1999 with a MRDB ICT Committee which includes cross-border local government membership including Victoria's Wodonga, Indigo and Towong Shires. The original aim of the committee was to attract a competitor to Telstra in the local area in the hope of driving down prices. The project began with an audit in 2000 of local telecommunications infrastructure and demand. The results of the audit which showed strong local demand were not enough to attract alternative carriers to the region. The message was 'that it was too small a market for significant investment and not worth the financial risk.' 24 The ICT Committee decided that the solution was to establish its own telecommunications company to manage the 'last mile' infrastructure. In 2001 the Murray River Regional Telecommunications Company Ltd trading as CountryTELL was established as a not-for-profit company. CountryTELL has received funding from NTN, and the Victorian and NSW Governments. CountryTELL began a Wi-Max trial in 2004 using the 2.010-2.015 Ghz band under an ACA Scientific Licence. The strategy behind the trial was to establish in Albury-Wodonga a Network Hub 'from which low-cost wireless broadband, VoIP and CDMA local loop services can be delivered to the smaller towns and rural districts of our region.' 25 CountryTELL has been working at the leading edge of wireless technology's using WiMax equipment that was developed before any equipment had been officially WiMax certified. Mobile WiMax equipment has been released by Samsung but the WiMax forum is not expected to release mobile WiMax certified equipment until towards the end of 2006. 26 CountryTELL has also had problems with obtaining access to appropriate broadband spectrum and has been active in lobbying the Australian Communication Authority for release of appropriate wireless spectrum with licensing arrangements that encourage the development of wireless based regional telcos. In particular CountryTELL argued that 'some bands suitable for BWA and VoIP require protection and preservation specifically for the benefit of regional and rural communities.' 27 CountryTELL has had to develop expertise in a wide range of areas including relevant legislative requirements, technical standards and industry codes. Without pro-bono contributions of local ICT, financial and legal firms the projects costs would have been much higher. CountryTELL has developed what it believes is a repeatable process for developing a regional telecommunications strategy based on identifying the needs of the local community and adherence to open standards. Their approach is based on conducting a workshop program for community and regional strategic planning and a strategic planning document can be produced within nine weeks. 28 24 http://www.mrdb.nsw.gov.au/telecom/ 25 http://auction.aca.gov.au/current_projects/bwa/murray_rdb.pdf#search='murray%20river%20regional%2 0Telecommunications' 26 The first WiMax certified equipment by the WiMax Forum became available on 19/02/06 this equipment was certified only in the 3.5GHz spectrum - http://dailywireless.org/modules.php?name=news&file=article&sid=5126 27 http://auction.aca.gov.au/current_projects/bwa/murray_rdb.pdf#search='murray%20river%20regional%2 0Telecommunications', p.2 28 Unpublished Submission by Murray Regional ICT Committee CountryTELL consortium To DCITA Australian Local Government Association 30/06/2006 13

New England Smart Communities Action Project (NESCAP) The New England Strategic Alliance of Councils Armidale Dumaresq, Uralla Shire Council, Guyra and Walcha shire councils undertook the New England Smart Communities Action Project (NESCAP). NESCAP was not a regional telco it aimed to aggregate demand to improve services. It received significant amounts of funding from the Federal and State government and undertook a number of key infrastructure projects including: University of New England The Armidale Sydney Link Transgrid The Armidale Last Mile Country Energy NSW Office of Information Technology (NCF 27) Health & Education Focus Last Mile Infrastructure Facilitating Commercialisation New England North West Consortium (NCF 12) Health & Education Focus NE & NW Regional Network (Regional Reticulation) The Uralla Wireless Local Loop (WLL) was launched in August 2004 and aimed to provide broadband data and Internet access up to 2mbps and provide a 'proof of concept Wireless Local Loop' with applications including VoIP, Videoconferencing and/or Video on Demand delivered over the WLL. All Uralla Shire Council sites are connected to WLL. 29 The NSW Office of Information & Communications Technology (OICT) funded the trial of wireless technology to a total of 11 businesses and residents in Armidale and Uralla including the Armidale Dumaresq Council. The Armidale Strategy developed as part of NESCAP was to extend Optic Fibre coverage and provide improved broadband coverage for SME's to large businesses. New objectives were developed for NESCAP that included: To increase the take-up of broadband services by the business community through education in the use of new and existing broadband service applications. To maximise the economic development opportunities presented by the availability of new broadband infrastructure in Armidale and Uralla. To develop new and existing broadband infrastructure in Armidale and Uralla to enable further opportunities, efficiencies and cost savings for the community. 30 In 2005 the involvement of councils in the NESCAP ceased due to the original objectives of the project having been meet which were to see competitively priced broadband services introduced in the region. The hardware and other equipment which has been purchased for the region by the Office of Information and Communications Technology have been made available to NESCAP (Uralla Shire Council) at no cost. 31 discussion papers Broadband Connect Clever Networks 29 http://www.armidale.nsw.gov.au/planning/1295/1322.html 30 http://www.atug.com.au/other/abeypres.pdf 31 http://www.uralla.local-e.nsw.gov.au/files/1617/file/2005-8-gm.pdf Australian Local Government Association 30/06/2006 14

Networking the Northern Rivers - Norlink Communications Ltd Norlink began with NTN funding to develop a demand aggregation telecommunications strategy and the production of a business case to attract carriers to the region. The project was intended to become a model for other rural and regional telecommunications and to building regional capability. The Norlink Board initially consisted of representatives from: Southern Cross University Northern Rivers Regional Organisation of Councils (NOROC) NSW Farmers Association - Far North Coast Branch Northern Rivers Regional Development Board Northern Development Task Force Northern Rivers Tourism The Norlink Communications project stated that its goal was: '...social and economic development through better telecommunications... Telecommunications is a vital lifeline to regional and rural Australia as much as roads and rail lines and even electricity...we all know that cost effective, high speed telecommunications that is ubiquitous across a region is a key stimulant for economic growth both now and in the future.' The project involved a number of elements but the most important was the Norlink etown project which was the provision of Wireless Local Loop (WLL) technology to four etowns in the Northern Rivers region. The etown WLL projects were designed to help rejuvenate small regional townships through 'the use of advanced infrastructure to delver cost effective high bandwidth services.' 32 In 2005 Norlink Communications Ltd ran into financial difficulties and its current status is 'Under External Administration and/or Controller appointed' 33 Southern Phone Southern Phone is a limited liability company owned by forty-two councils. The company was established as a council owned Telco with the assistance of NTN funding with the aim of providing more competitive telecommunications services in south east NSW. The Eurobodalla Shire Council was the lead council in applying for NTN funding to establish the council owned Telco. One of the key drivers of the project was to assist in the economic development of the south east region. The other drivers were to: reduce long distance telecommunications costs provide affordable and accessible broadband services 34 By the end of the NTN project Southern Phone had been established as a viable national telecommunications company that has its headquarters in Moruya, NSW. Southern Phone has become a full service telecommunications provider and its customers come from all of regional Australia and the company's revenue is over $20 million and it employs over 50 people. The company established twelve Network Access Points (NAPs) in NSW and delivered 32 http://www.mullum.com.au/corporateprofile.pdf 33 Search of ASIC database on 19 February 2006 - http://www.search.asic.gov.au 34 Southern Phone, Final Report: Southern Phone Company Project, pp. 2-3. Australian Local Government Association 30/06/2006 15

microwave broadband services to the Greater Southern Area Health Service and the NSW Department of Education during the NTN project. The company was also involved in trialling new technologies to deliver 'last mile' broadband services including: trialling WiFi technology in Moruya trialling use of power lines as a means of distributing broadband services at the North Moruya Industrial Estate Australian Local Government Association 30/06/2006 16

5. Major Infrastructure Projects Local government has been an active participant, often playing a leadership role in obtaining funding for major broadband infrastructure projects including the ones listed below. Councils have demonstrated their ability to form strong partnerships with business, universities, and the health and education sector. Councils are key stakeholders in all major regional infrastructure projects because they represent the voice of the community, they are highly regarded within the community, and they are enduring organisations. NSW - The Hunter IN-REACH Project (CCIF) The Hunter Council is a member of a consortium lead by the University of Newcastle to provide a fibre ring in eastern Newcastle linking various education, health and local government facilities. 35 NT - Thamarrur Regional Infrastructure Upgrade (CCIF) The project will be undertaken by the Local Government Association of the Northern Territory with the Thamarrur Regional Council to provide microwave, DSL and CDMA 1*RTT solutions for 5,000 people living in the communities of Wadeye, Palumpa, Peppimenarti and Daly Rivers. 36 SA - Coorong Rural Broadband Network In 2005 the Coorong District Council was successful in an application to the State Governments South Australian Broadband Strategy and received $398,950 to build on the existing Coorong Communications Network which began with NTN funding. 37 The Council has taken a lead role in the establishment of high speed broadband internet network across the majority of the Council area (almost 100%). It is anticipated that the improved speed and bandwidth for internet services will increase the accessibility of services, education and information for farms, businesses, tourism operators and government agencies, at a low cost. The project will also enable the Council to expand the range of services and facilities available through its own website. SA - City of Salisbury Connect Salisbury initiative The City of Salisbury announced in 2005 the Connecting Salisbury initiative which aims to ensure that high-speed broadband services will be provided throughout the entire City. Broadband services were identified as essential to competing in international markets. The broadband network is a mix of radio and cable technologies funded through the SA State Government's Broadband Development Fund. 38 35 http://www.minister.dcita.gov.au/media/media_releases/broadband_funding_for_rural_and_remote_weste rn_australia 36 http://www.minister.dcita.gov.au/media/media_releases/broadband_funding_for_rural_and_remote_weste rn_australia 37 http://www.coorong.sa.gov.au/site/page.cfm?u=158&c=979 38 http://cweb.salisbury.sa.gov.au/manifest/servlet/page?pg=10537&stypen=html Australian Local Government Association 30/06/2006 17

SA - Eyre Regional Development Board In 2005 the board was successful in a grant application to the SA Government Broadband Development Fund and received $965,000 towards the construction of a new network extending the Port Lincoln broadband project. The project provides for wireless broadband infrastructure which will connect 11 towns in the region. 39 SA - Kangaroo Island Development Board The board will receive $427,300 under the SA Broadband Development Fund to upgrade ADSL capability on the island. 40 SA - Broadbanding the Yorke Peninsula (CCIF) The broadband project in the Yorke Peninsula will include the establishment of new wireless towers at Minalton, Warooka and Yorketown council depots and will provide high speed Internet communications all members of the Yorke community within a 10 kilometre radius of the major business centres of Maitland, Minalton, Yorketown and Warooka. 41 39 http://www.innovation.sa.gov.au/ data/assets/pdf_file/1700/final_media_release_broadband_projects. pdf 40 http://www.innovation.sa.gov.au/ data/assets/pdf_file/1700/final_media_release_broadband_projects. pdf 41 http://www.dcita.gov.au/ data/assets/pdf_file/29973/broadbanding_the_yorke_peninsula3.pdf Australian Local Government Association 30/06/2006 18

6. Local Government driving Broadband Demand projects ALGA and the state and territory local government associations have identified obtaining broadband access as critical to the economic, social and cultural development of regional Australia. Many individual councils either working by themselves or in partnership, have identified obtaining effective broadband access as essential to the development of their region. Examples of the involvement of councils in driving broadband demand for their communities are given below. New South Wales Riverina First Riverina First is a region wide initiative of the Riverina Regional Development Board and Telstra Country Wide which is aimed at improving telecommunications services within the Riverina. The project is based on a fund that has been established to foster improved telecommunications services across the region. For every business and residential customer who is registered with Riverina First, Telstra will contribute 1.5 cents for very fixed line local call and Telstra pre-select calls to the fund. Riverina First has the support of these councils: Bland Cootamundra Carrathool Coolamon Culcairn Griffith Gundagai Hay Holbrook Jerilderie Junee Leeton Lockhart Murrumbidgee Narrandera Temora Tumbarumba Tumut Urana Australian Local Government Association 30/06/2006 19

Wagga Wagga 42 Innovative Uses of Broadband by Local Government in Australia Tweed Shire Council Under the Community Demand Aggregation Broker program the Tweed Shire Council will act as the lead council in partnership along with Ballina, Byron, Clarence Valley, Kyogle, Lismore, Richmond Valley, Beaudesert, Boonah and Redland Shire Councils. The councils will undertake an integrated ICT strategy for the region to promote and facilitate the expansion and take up of broadband. 43 Wagga Wagga City Council Under the Community Demand Aggregation Broker program the council has employed a community broker to help identify the community's requirements and provide a range of broadband enabling solutions. 44 Northern Territory Alice Springs Town Council The Alice Springs Town Council approved the installation of a wireless broadband antenna for the purpose of providing a wireless broadband Internet service for the residents of Alice Springs in May 2004 45 and signed a wireless Broadband Internet Service Agreement with Veridas Communications Pty Ltd in March 2005. 46 In May 2006 Nufer Day & Associates will be running a two day seminar that 'will give you key facts, practical theory & strategies to successfully integrate Wireless LAN Technology into your existing network.' 47 Inland Alliance of regional local government The Desert Knowledge Co-Operative Research Centre has been supported by the Inland Alliance of Local Government. 48 Queensland Connecting Your Place (Qld and NSW) Connecting Your Place is a joint project managed by the Gold Coast Council's Economic Development Branch in partnership with 10 regional Queensland and NSW Councils with the assistance of the Federal Government's Community Based Broadband Demand Aggregation Broker Program Ballina Shire Council (NSW) Beaudesert Shire Council (QLD) Boonah Shire Council (QLD) 42 http://www.coolamon.nsw.gov.au/community/1038.html 43 http://www.minister.dcita.gov.au/media/media_releases/broadband_broker_funding_for_rural_and_region al_communities 44 http://www.minister.dcita.gov.au/media/media_releases/broadband_broker_funding_for_rural_and_region al_communities 45 http://www.alicesprings.nt.gov.au/council/pdf/mn_council/council_minutes_040524.pdf 46 http://www.alicesprings.nt.gov.au/council/pdf/ag_ts/ts_agenda_050314.pdf 47 http://www.alicesprings.nt.gov.au/calendar/event.asp?id=3318 48 http://www.desertknowledge.com.au/dka/index.cfm?attributes.fuseaction=sitemap Australian Local Government Association 30/06/2006 20

Clarence Valley Council (NSW) Kyogle Council (NSW) Lismore City Council (NSW) Logan City Council (QLD) Redland Shire Council (QLD) Richmond Valley Council (NSW) Tweed Shire Council (NSW) Gold Coast City Council (QLD) 'The objective of the project is to ensure competition in Broadband services by inviting a number of local and national telecommunications services providers to present their products to these communities, with the intention of offering at least two competitive Broadband solutions.' 49 The Gold Coast City Council has developed an 'eligible areas map' to assist their community members to determine if they are in an eligible area for this project. 50 As part of the project a 'Broadening Broadband' website has been created which outlines the advantages of broadband and allows people to register their interest in obtaining broadband through the project.' 51 Maroochy Shire Council The Maroochy Shire Council is acting as the lead council on behalf of the Sunshine Coast Regional Organisations of Councils to employ a community demand broker with the aim of improving broadband access in the less populated hinterland. 52 Suncoast Broadband The Suncoast Broadband project is a community partnership project initiated to obtain better broadband Services on the Sunshine Coast which began in August 2005. The project is co-funded by three councils Maroochy, Noosa and Caloundra through the Sunshine Coast Regional Organisation of Councils (SunROC) in partnership with the State and Australian Government. Maroochy Noosa Caloundra The project is a demand aggregation project that aims to address the digital divide by seeking out new suppliers of broadband technology for the Sunshine Coast. 53 Wide Bay Burnett Regional Organisation of Councils A community demand broker has been engaged by Wide Bay Burnett to encourage the deployment of broadband access for community organisations, local businesses, and 49 http://www.broadeningbroadband.com.au/project_overview.asp 50 http://www.goldcoast.qld.gov.au/t_print.aspx?pid=4124&print=true 51 http://www.broadeningbroadband.com.au/ 52 http://www.minister.dcita.gov.au/media/media_releases/broadband_broker_funding_for_rural_and_region al_communities 53 http://www.suncoast-broadband.net.au/2/about_suncoast_broadband.html Australian Local Government Association 30/06/2006 21

education and health providers in the region. 54 South Australia Adelaide Hills Council The council is working with the Adelaide Hills Regional Development Board and the District Council of Mt Baker to support the expansion of broadband access for all residents of the Adelaide Hills area. The council created an 'expression of interest registration form' to gauge the level of interest in the community. 55 The council has identified a significant committee in staff time (.05 FTE) is required if it is to proceed with applications for funding to the Australian and State governments. 56 Baroosa and Light Regional Development Board The Board has received a grant of $596,500 under the SA Broadband Fund to improve broadband access in the region. The program will target small businesses and has received in-kind support from the Light Regional Council and the Barossa Councils. 57 Victoria Castlemaine CANDP In 2003 the Bendigo Community Telco formed a consortium with PowerTel and PowerCom Telcom to install broadband infrastructure in Castlemaine with the assistance of funding under CANDP. Single pair high-speed digital subscriber line (SHDSL) is used to provide faster access and greater bandwidth than ordinary ADSL. 58 Gippsland CANDP A Victorian Government funded Customer Access Network Demonstration Project (CANDP) undertaken with seven councils in the Gippsland area. A consortium consisting of seven Shires and Telstra Country Wide was formed to bring mobile data services to the area with funding help from CANDP. A CDMA 1x technology was provided which provides mobile wireless access for both voice and data services at speeds up to 144kbps. 59 Macedon Ranges Shire Council Under the Community Demand Aggregation Broker program the council has employed a community broker to analyse broadband demand with the purpose of attracting broadband service providers the project covers the shires of Macedon, Mitchell and Murrindini. 60 54 http://www.minister.dcita.gov.au/media/media_releases/broadband_broker_funding_for_rural_and_region al_communities 55 http://www.ahc.sa.gov.au/site/page.cfm?u=696 56 http://www.ahc.sa.gov.au/webdata/resources/files/0501220_rep_sbm_adsl_project.pdf 57 http://www.innovation.sa.gov.au/ data/assets/pdf_file/2759/barossa_and_light_broadband.pdf 58 http://www.mmv.vic.gov.au/broadband/investinginbroadbandinfrastructureinregionalvictoriacastlemainec ANDP 59 http://www.mmv.vic.gov.au/broadband/usingmobiledataservicesinregionalvictoriacasestudygippslandca NDP 60 http://www.minister.dcita.gov.au/media/media_releases/broadband_broker_funding_for_rural_and_region al_communities Australian Local Government Association 30/06/2006 22