NBN boost: A$3bn to upgrade internet speeds for millions

Australia’s federal government has announced a major investment in the country’s internet infrastructure, committing A$3bn (US$1.9bn) to upgrade the remaining fibre-to-the-node (FTTN) network.

This substantial injection of funds, with NBN Co contributing over A$800m to the project, aims to provide faster and more reliable internet access to an additional 622,000 premises by 2030.

This investment builds upon the government’s existing A$2.4bn outlay for FTTN upgrades, which has already brought improved broadband to 1.5 million premises, including 660,000 in rural and regional communities. The upgrades are expected to be delivered on time and within budget.

Finance minister Katy Gallagher underscored the importance of the investment, citing the growing reliability and security issues stemming from the previous government’s decision to implement a copper-reliant network.

Gallagher said removing the copper from the FTTN network is crucial to finally building the NBN as originally envisioned. “Rolling out faster and more reliable internet is a key priority of this government, it’s good for our economy, it’s better for business, and helps to deliver stronger, more connected communities,” she added.

Communications minister Michelle Rowland noted that fast and reliable broadband is “essential infrastructure now, in 2025, and in the long term”.

Framing the investment as a demonstration of the government’s dedication to providing a better NBN for Australians, she said the government is working with NBN Co to complete the network upgrade and deliver world-class broadband speeds to thousands more Australians.

Independent modelling conducted by Accenture forecasts the FTTN upgrade programme will provide a A$10.4bn cumulative boost to Australia’s GDP over the next decade. The modelling also suggested that individual households could save over 100 hours and A$2,580 per year in reduced travel time and expenses due to improved access to faster broadband.

Upon completion of the upgrade programme, more than 94% of premises on the fixed-line network – over 11 million homes and businesses – will have access to connections enabling speeds of up to 1 Gbps.

A small percentage of premises with more complex requirements will undergo further design analysis and potentially be upgraded through alternative technology solutions, offering speeds of up to 400Mbps.

Commpete, an industry alliance for competition in digital communications, welcomed the FTTN upgrade programme, echoing the government’s sentiment on the importance of ongoing investment in telecommunications infrastructure to support Australia’s digital transformation and global competitiveness.

However, Commpete also raised concerns about the ambitious five-year timeline and the $3bn budget, considering the challenges of large-scale infrastructure deployment, particularly in regional areas, and escalating material and labour costs.

It pointed out the significant per-premise cost, estimated at A$6,100, suggesting it would take over a decade to recoup this investment based on average monthly NBN access fees. “This puts the cost and time schedules on a very thin line to ensure the benefits of all-important NBN access are fully realised,” it said.

Commpete said it was also interested to understand the government’s stance on emerging technologies like fixed wireless access and satellite, and their potential impact on NBN uptake. It argued that these rapidly advancing technologies could become increasingly attractive alternatives in the next five to 10 years, potentially becoming more attractive alternatives to NBN.

“Competition in the delivery of services including across technologies will always deliver a better outcome,” it added, noting that “further investment in NBN may mean alternative investments in alternative technologies are not pursued, potentially at the detriment to competition and ultimately digital transformation solutions for Australian people and organisations”.