Broadband, Communications and the Digital Economy

Audit strategy overview

With an overall portfolio budget of approximately $3 billion, responsibilities within this portfolio include communications and technology, media and broadcasting, and postal services. Agencies within the portfolio are the:

• Australian Communications and Media Authority (ACMA);
• Australian Broadcasting Corporation;
• Special Broadcasting Service; and
• Australian Postal Corporation, which is a government business enterprise.

Major initiatives within the portfolio include: providing broadband services through establishing the National Broadband Network (NBN); providing safe Internet services; facilitating effective switchover to digital television; and the regulation of radio and television broadcasting and Internet services.

Recent ANAO audits have covered the National Broadband Network Request for Proposal Process, the establishment and management of the Communications Fund, ACMA’s regulatory functions and the department’s broadband incentive schemes. The ANAO’s future audit program will continue to address the key risks associated with the portfolio’s major initiatives and responsibilities. These include: cyber-safety initiatives (particularly payment for Internet filters), the incentives that continue to be offered to provide metro-comparable broadband services, and the regulatory responsibilities of portfolio agencies.

Audits in progress at 1 July 2010

Management of the Australian Broadband Guarantee

The Australian Broadband Guarantee program offers financial assistance to registered Internet service providers (ISPs) to supply metro-comparable broadband services to (generally) regional, rural and remote customers who would not otherwise receive such services. The Department of Broadband, Communications and the Digital Economy provides incentive payments to ISPs for each eligible customer they connect under the program.

The objective of this audit is to examine the administration of the Australian Broadband Guarantee program and the extent to which the objectives are being achieved.

The audit report is expected to be tabled in the Spring 2010 Parliamentary Sittings.

Potential audits

Regional Backbone Blackspots Program

As part of the Australian Government's commitment to deliver a National Broadband Network that will provide superfast broadband to Australian homes and workplaces, it is investing up to $250 million to immediately address where there is a lack of competitive backbone infrastructure (‘blackspots’). Following a tender process Nextgen Networks will roll out approximately 6000 kilometres of backbone infrastructure under the Regional Backbone Blackspots program. Nextgen Networks will also operate and maintain backbone transmission links to the priority blackspot locations for an initial five-year operational period.

An audit would examine the tender process and ongoing management by the Department of Broadband, Communications and the Digital Economy of the Regional Backbone Blackspots program.

Digital Television Switchover

In March 2008 the Government announced a $37.9 million digital transition strategy to complete the switchover from analogue to digital-only broadcasting by December 2013. The analogue to digital switchover will affect just about every household and every television receiver in Australia. The Digital Switchover Taskforce within the department is responsible for coordinating and overseeing Australia's transition to digital from analog television.

An audit would examine the implementation and administration of the Digital Television Switchover.

Cyber-safety Plan

The Government announced the Cyber-safety Plan as part of the 2008–09 Federal Budget. The Cyber-safety Plan aims to combat online threats and to protect children from inappropriate material on the Internet, through activities such as:

• expanded education and consultative measures;
• Internet Service Provider-level filtering of an expanded ACMA blacklist;
• funding to the Commonwealth Director of Public Prosecutions to manage increased activity resulting from AFP work to ensure that prosecutions are handled quickly; and
• funding to ACMA to implement a comprehensive range of activities and an online helpline for children to report online incidents that cause them concern.

An audit would examine the implementation and administration of the Cyber-safety Plan and the extent to which the program is achieving its objectives. The audit would include work in the Attorney-General’s and the Broadband, Communications and the Digital Economy portfolios.

Digital Regions Initiative

The four-year $60 million Australian Government initiative is a competitive funding program and will co-fund innovative digital enablement projects with state, territory and local governments. It is a collaborative approach to improve the delivery of education, health and/or emergency services in regional, rural and remote communities. State, territory and local governments can apply for Digital Regions Initiative funding. Private and not-for-profit organisations can partner with eligible organisations. The Initiative was announced in March 2009 and will conclude in 2013. The first round closed on 14 October 2009. It is expected that the second round of funding will commence in 2010.

An audit would examine the administration of the Digital Regions Initiative by the Department of Broadband, Communications and the Digital Economy.

 

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