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The funding allocation under BARN is fully committed.

BARN provided $70 million from 1999 to 2005 to support the development of new networks and new network services and products, with an emphasis on the adoption of innovative solutions and leading edge technologies, the introduction of high speed regional networks and strong participation of new telecommunications carriers and service providers in project implementation.

Of the $70 million, $10 million was allocated to each state with a further $10 million to the territories, including Pacific and Indian Ocean territories.

Approximately half of the BARN funding was provided through the National Broadband Strategy announced in 2003.

Examples of infrastructure and services supported in conjunction with new networks under BARN included:

• backbone data carriage services;
• wireless local loop systems;
• network management systems;
• innovative satellite services;
• network hardware components;
• technical support services;
• training and skills development services;
• e-business and e-commerce systems;
• online service delivery;
• video-conferencing;
• Internet service delivery; and
• mobile telephony.

BARN was developed and implemented in close consultation with state and territory governments to ensure that funded projects reinforce state strategies, including in areas such as demand aggregation.

Selection criteria

The Networking the Nation (NTN) General Guidelines set out the framework under which BARN operated, including the selection criteria that the NTN Board applied.

The Board established guidelines to ensure that projects seeking to develop innovative products and services did not compete unfairly with existing services of a similar nature. Under BARN these same principles were applied with rigorous, transparent processes to ensure that private sector partners in projects were selected on an open basis.

Specific elements of some selection criteria did not apply for the purposes of projects in Universal Service Obligation (USO) contestability pilot areas, including those criteria relating to non-duplication of infrastructure required under the USO, support from targeted communities and competitive neutrality. Funding in this context was available to both for-profit and not-for-profit bodies.

More information about the USO can be found at the Australian Communications Media Authority (ACMA) website at www.acma.gov.au

Project priorities

BARN supported the development and implementation of innovative telecommunications and IT infrastructure and services in regional Australia, including:

• the development of high speed regional networks;
• the delivery of new networks and services by competing universal service providers, leading to greater choice and service standards for consumers in USO contestability pilot areas;
• the development, trialling and implementation of new services and products capable of leapfrogging present price and service quality parameters;
• enhancing competition in the supply of such products and services to regional users;
• the development of new market models for delivery of regional communications services;
• providing broad and lasting benefits for rural telecommunications users; and
• promoting the economic development of regional areas.

Key priorities for projects funded under BARN included:

• high speed regional networks;
• innovative infrastructure and services;
• encouragement for new entrants and boosting consumer outcomes in USO pilot areas; and
• private sector commitment to ongoing involvement and support.

Priority consideration was also given to:

• projects that were consistent with state and local government strategies;
• projects that aggregated existing and new demand in regional areas and therefore improve the business case for enhanced services; and
• projects with a regional, state or national scope and which were supported by regional bodies or by state governments.

Project location

To be eligible for funding under BARN and other NTN programs, projects had to be located outside the capital city of a state or territory.

Projects located in remote and isolated island communities were also eligible for funding under the NTN Remote Islands Fund.

Eligible applicants

Not-for-profit organisations, as set out in the NTN General Guidelines, were eligible for funding under BARN.

For-profit organisations approved by the ACMA as competing universal service providers for the purposes of the USO contestability pilots, or organisations that intended to apply for such approval, were eligible for funding for projects (or those elements of projects) implemented within the pilot areas. Funding was not released to such organisations until the ACMA approval was confirmed.

Information about USO contestability and competing universal service provider is available from the website of the ACMA (see www.acma.gov.au ).

Private sector involvement

Projects funded under BARN were encouraged to have significant private sector involvement, consistent with the Government's objective of encouraging competition in telecommunications and promoting new models for service delivery across a range of regional markets.

Projects funded under BARN also had a strong focus on meeting community needs. They included support from target communities. New infrastructure resulting from projects could be owned either by the project organisation or by the private sector participant.

• Document ID: 6664 |
• Last modified: 6 February 2008, 1:40pm