The real NBN business plan
It is important to revisit the reasons for Australia building its national broadband network (NBN).
Several things became clear during the privatisation process of Telstra in the last decade. Broadband quality was below the international benchmark, end-user and wholesale prices were above that mark and there was no economically viable business case for high-speed broadband infrastructure for regional and rural Australia.
Coinciding with the debate around these issues was the arrival of the GFC and the government’s decision to change its broadband infrastructure plan from a regional to a national one. It also linked that to the development of the digital economy and launched supporting policies in e-commerce, e-health, e-education and smart grid, all aimed at utilising the NBN for those purposes.
Under the national plan, NBN Co will connect 93 per cent of homes, schools and workplaces to an optical fibre network (fibre-to-the-premises – FttP), providing high-speed broadband services to Australians in urban and regional towns. The remaining 7 per cent of premises will be connected to an LTE-based fixed wireless network, and those in extremely remote areas will be linked to a satellite network.
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