An extra $3B in funding for the National Broadband Network, Labor adds NBN nirvana to its campaign pitch. What’s the scam?
The scam is that the investment does not mean any new fast broadband connectionsf. All it means is that NBNCo will have the money to complete what it originally set out to do, which was to facilitate the connection of the majority of Australian households to fast broadband using fibre optic cable and retire the ailing copper network.
NBNCo is pitching in another $800m, and the total $3.8B investment will “benefit around 622,000 homes and businesses across the country, with more than half located in regional Australia,” according to the company’s website. How many of those will actually be connected is anybody’s guess.
Much has changed since the NBN launched its first services back in 2011. What was a good plan was somewhat botched in early execution and further marred by the Abbott Government when they came to power in 2013. Politics took precedence over common sense as Communications Minister Malcolm Turnbull forced NBNCo to ditch its plans in favour of extending the life of the copper network while reducing the value and potential economic impact of the NBN.
How did the ‘clever country’ end up with a $90 billion botched NBN?
But more importantly, today, regional customers have other options to connect to the internet, and many have taken advantage of those. Elon Musk’s Starlink and others provide viable alternatives for those seeking fast and reliable internet connection “in the bush”.
Out of the bush, many of the 300,000 odd who will be able to access the new infrastructure have even more options, including mobile 5G connections offering speeds similar NBNCo. It is estimated that 95% of Australia will be covered by 5G by the end of this year.
The additional 622,000 fibre-to-the-premises (FTTP) connections will be completed by 2030, and only then will we know how many new connections have been made and paid.
By then, a 2025 election promise and the money spent will be forgotten.
The National Broadband Network’s copper wires are degrading, which is why Labor has announced that we’ll connect 622,000 more premises to fibre, with gigabit speeds. Labor built the NBN. Only Labor can be trusted to get it right. #auspol pic.twitter.com/e3wQB0gwQW
— Andrew Leigh (@ALeighMP) January 13, 2025
Kim Wingerei is a businessman turned writer and commentator. He is passionate about free speech, human rights, democracy and the politics of change. Originally from Norway, Kim has lived in Australia for 30 years. Author of ‘Why Democracy is Broken – A Blueprint for Change’.
