The NBN: How Australia Got Screwed on Internet Infrastructure

Australia’s National Broadband Network (NBN) was envisioned as a transformative project to propel the nation into the digital age. However, political decisions and implementation challenges have left Australia lagging behind global peers in internet performance.

As of January 2025, Australia ranks 69th globally for fixed broadband speeds, with a median download speed of 150.01 Mbps. In contrast, countries like Singapore and South Korea consistently achieve speeds exceeding 200 Mbps.

This disparity highlights the consequences of the NBN’s troubled rollout and raises questions about the path to rectifying these issues.

The Original Vision

In 2009, under Prime Minister Kevin Rudd, the Labor government announced an ambitious plan to construct a nationwide fibre-to-the-premises (FTTP) network. This $43 billion initiative aimed to deliver high-speed internet access, up to 100 Mbps, to 93% of Australian homes and businesses, with the remaining 7% covered by fixed wireless and satellite technologies.

The goal was to future-proof Australia’s internet infrastructure, ensuring competitiveness in a rapidly evolving digital landscape.

The Shift to Multi-Technology Mix

The political landscape shifted in 2013 with the election of the Liberal-National Coalition government. Citing cost concerns and aiming for a faster rollout, the new administration, led by Prime Minister Tony Abbott and Communications Minister Malcolm Turnbull, altered the NBN’s course.

The revised strategy, known as the Multi-Technology Mix (MTM), incorporated existing copper networks and hybrid fibre-coaxial (HFC) systems, reducing the reliance on new fibre installations. While this approach was projected to save money and expedite deployment, it resulted in a network with varied performance levels and ongoing maintenance issues.

Consequences of the MTM Approach

• Performance Disparities: The integration of older technologies, such as fibre-to-the-node (FTTN), has led to inconsistent internet speeds and reliability issues across the country.
• Increased Costs: Initial cost-saving projections did not materialise as expected. The estimated final cost of the NBN rose from $29.5 billion in 2013 to approximately $51 billion by late 2018.
• Global Ranking Decline: Australia’s position in global internet speed rankings has suffered. As of January 2025, the country stands at 69th for fixed broadband speeds, trailing behind many developed nations.

Recent Developments and Future Prospects

Recognising the shortcomings of the MTM model, the current Labor government has taken significant steps to fix the NBN. Since returning to power, Labor has committed billions in additional funding to extend fibre connections to more homes and businesses, reversing many of the Coalition’s cost-cutting measures. The government’s approach prioritises full-fibre connections where possible, ensuring greater speed and reliability.

In addition, competition from alternative providers like Elon Musk’s Starlink has driven further improvements in service delivery. As of late 2024, Starlink had attracted over 200,000 Australian users, highlighting the demand for better connectivity solutions. While satellite broadband is not a direct replacement for a robust fibre network, its growing adoption reflects the shortcomings of previous NBN policies.

Conclusion

The NBN’s journey reflects a series of political and strategic missteps that have hindered Australia’s digital progress. However, the current Labor government is making substantial investments to correct past mistakes and improve broadband infrastructure.

To fully rectify the situation, continued investment in fibre infrastructure, embracing emerging technologies, and fostering competition are essential steps. Only through such measures can Australia hope to bridge the digital divide and reclaim a competitive position in global internet rankings.

Source List

• https://en.wikipedia.org/wiki/National_Broadband_Network
• https://www.speedtest.net/global-index/australia
• https://www.afr.com/technology/it-took-11-years-for-government-to-admit-it-was-wrong-about-broadband-20200923-p55yc6
• https://www.news.com.au/technology/online/internet/new-war-brewing-between-musk-and-albo/news-story/ded3d329efa7f8685885f3a6eddea31c
• https://www.theaustralian.com.au/nation/politics/labour-pours-extra-3bn-into-national-broadband-network/news-story/4f40716459b2aa566480294d2b20558a