Telstra has temporarily ceased enabling some rural telephone exchanges for ADSL services after late last year it reached the limit of funds it could receive from the federal government's subsidised bush broadband scheme.
Internet service provider Westnet plans to continue selling subsidised broadband services to rural areas under the federal government's Broadband Connect (BC) program, despite the decision of its wholesale provider, Telstra, not to participate in the scheme.
Regional ISPs should have been better prepared for the demise of the Broadband Connect subscriber subsidy program.
update: Communications Minister Senator Helen Coonan will allow regional Internet service providers left in the lurch by the sudden closure of a federal subsidy to claim funds under a replacement program.
The federal government today said it was considering legal action as it attempted to recover debts owed by Internet service provider (ISP) BushCom.
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