The first stage of the Broadband Connect package began in January. It is being administered under largely the same rules that applied to the Higher Bandwidth Incentive Scheme (HiBIS), which it succeeds. After a consultation process, the Department of Communications, Information Technology and the Arts (DCITA) expects that changes will be made to these arrangements to improve the administration and effectiveness of the scheme. These changes will be effective from 1 July 2006.

Complaints about eligibility for Broadband Connect subsidies should be made to DCITA directly. The TIO can assist consumers in resolving a range of complaints about services provided under Broadband Connect. Consumers should first approach their service provider for assistance. If the complaint remains unresolved they may come to the TIO.

Key elements of the scheme as it currently stands are outlined below.

Internet service providers must register to become part of the scheme. A register of participating ISPs, including the type of broadband offered and the areas which they service, is available at www.dcita.gov.au.

Broadband Connect subsidies are provided directly to the ISP to be used towards the installation/connection costs for services provided to eligible customers. These include residential and small business customers as well as not-for-profit organisations in the Broadband Connect area who do not already have access to a higher bandwidth service. Only one subsidy is available at any single premises.

The Broadband Connect area covers all of Australia beyond the Metropolitan Exclusion Area (MEA).

The ineligible (MEA) area includes:
· Adelaide, Brisbane, Canberra, Darwin, Hobart, Melbourne & Sydney and
· the high population centres of Wollongong (NSW), the Central Coast of NSW, Newcastle (NSW), Geelong (Vic), Palmerston (NT) and the Gold Coast (Qld), including Tweed Heads (NSW)
Subsidies are not limited to broadband services using specific technologies. Under HiBIS, subsidies were used to provide ADSL, wireless, cable and satellite services.

The only criteria under Broadband Connect is that services are “metro-comparable”. A “metro-comparable” service is defined as having a peak download data speed of at least 256kbps and a peak upload speed of at least 64 kbps with a monthly usage allowance of at least 500MB. It must be offered for a three-year package at a price which does not exceed the caps set under the scheme. The capped amount that is set by the scheme varies according to the technology used.

In addition to the requirements of a “metro-comparable” service, services provided under the Broadband Connect are subject to minimum performance requirements. Providers must ensure that they provide a data speed of at least 60 per cent of the peak speed offered for that service, 75 per cent of the time. A data testing facility established by DCITA tests the performance of each provider on a monthly basis to ensure that the minimum performance is maintained. The results are available on DCITA’s website.

Customers who are unable to access a “metro-comparable” higher bandwidth service can register their interest on the Broadband Connect demand register on DCITA’s website. This information is made available to Registered Broadband Connect Service Providers to assist them in deciding which areas to service and to assist eligible customers to obtain a broadband service.