Blackspot change plan afoot

New mobile towers could be built along major regional transport corridors, in bushfire-prone areas, or in towns with a low population density under a proposal to overhaul the selection criteria for the Mobile Blackspot Program. The three major changes are contained in a Federal Government discussion paper released in April after rules about how Commonwealth money could be spent meant just half of the $80 million allocated to round five of the program was spent. Federal Communications Minister Paul Fletcher recently announced a second take on round five, called Round 5A, after the Federal Government was left holding 58 per cent, or $46 million, of the unspent cash allocated for round five. The $34 million spent through round five provided funds to Telstra, Optus and Field Services Group to create 1832 new base stations — including 63 in WA. Another $80 million has been allocated for the sixth and final round. Mr Fletcher said the economics of new base stations was shifting as the program moved into more commercially marginal markets. “With each successive round, the base stations being funded are less economic for the mobile network operators,” he said, “This fact, and the results from round five, suggest that fewer sites are likely to be successfully funded if future rounds are held under the existing program design.” The discussion paper proposes a series of changes to the eligibility guidelines for the program, starting with Round 5A. This includes extending the program to test solutions in areas prone to national disasters including bushfires, improving coverage along major regional and remote transport corridors, and areas with low population densities. The discussion paper also proposed that 5A target transport corridors defined in the Roads of Strategic Importance initiative and National Land Transport Network, which identify significant transport corridors that deliver economic and social benefits to Australia. Priority would also be given to solutions offering services from at least two mobile network operators. Previously, priority was given to solutions that addressed priority black spots nominated by members of parliament in rounds one and two, while four and five focused on addressing coverage issues at public interest premises. Telstra, which has built the majority of the towers funded through the program, has threatened to take a back seat on future rounds. It argued that the economics of new builds was diminishing because they served fewer people. The telco also sought permission to use funds for ongoing operational costs of a tower, not to just part-fund the initial capital cost. The five rounds of the Mobile Black Spot Program have invested $836 million nationwide, including co-contributions from the States and mobile network operators, funding 1229 new mobile base stations. Base stations funded under the first five rounds of the program are scheduled to be operational by June 30, 2022. To read the discussion paper, visit https://bit.ly/2yUkJk4 Submissions close on June 19. To make a submission, email MBSPRound5@ communications.gov.au.