The federal government has announced a $3 billion investment into the National Broadband Network (NBN). Prime Minister Anthony Albanese has made internet access a key election issue, promising the funds will upgrade the NBN if Labor is re-elected. The move aims to offer faster speeds to the remaining homes and businesses still using slower copper wires instead of fibre optic cables.
The $3 billion is seen as a step to “finish” the NBN and speed up internet services, restoring Kevin Rudd’s original plan for a full fibre optic network. The Coalition had previously altered this plan, deciding to use existing copper wires to save costs, which resulted in slower internet connections. However, offering faster speeds does not guarantee they will be taken up.
In recent years, many Australians have opted for alternative internet services like 5G and satellite connections, such as Elon Musk’s Starlink. The government’s challenge is to reverse this trend with the new funding. The NBN is an internet wholesaler owned entirely by the federal government.
It creates internet infrastructure and sells it to retailers like Telstra and Optus, which then offer services to homes and businesses. Although it operates like a commercial business, its shareholders are government ministers, and it has responsibilities beyond profit-making, such as ensuring equitable access and servicing remote areas.
Government boosts NBN for faster speeds
Labor’s original plan invested $29.5 billion into the NBN, intending to sell its stake once the rollout was complete. However, the project faced difficulties, prompting the Coalition to alter the plan and inject an additional $19.5 billion as a loan. Despite paying back the loan, the NBN has not become profitable, reporting a multi-billion-dollar loss last financial year.
The latest $3 billion injection aims to connect the remaining 622,000 premises with fibre cabling. This upgrade is expected to offer speeds exceeding 100Mbps, potentially reaching up to 1Gbps. However, many users have been slow to switch to these high-speed plans.
Communications Minister Michelle Rowland emphasizes that completing the NBN fibre upgrades will provide equitable access to high-quality broadband for more Australians. With copper wires degrading over time, Labor anticipates fibre connections will become increasingly appealing, especially as the average household’s connectivity needs grow. The new funding targets premises in key electoral areas, including Melbourne, Sydney, and Adelaide suburbs, and other cities like Perth, the Gold Coast, and Canberra.
While the Coalition criticizes the investment as throwing “good money after bad,” it has stated it will not oppose the spending. Labor hopes to fulfill the original Rudd vision for the NBN, banking on the upgraded network to win over voters. The coming years will reveal whether this substantial investment can indeed revive the NBN’s prospects and convince more Australians to switch to fibre connections.
