In early 2021, Infrastructure Australia commissioned a report to examine how well the 2016 Australian Infrastructure Plan had been delivered. It found that in the telecommunications and digital sector there has been considerable progress overall since 2016.10
" In the telecommunications and digital sector, there has been considerable progress overall since 2016. "
Rapid NBN rollout: When NBN Co released its initial progress report in 2016, it had made 2.9 million premises ready to connect and connected 1.1 million premises to the network.11 Once the initial build phase was completed by 30 June 2020, NBN Co achieved its stated targets, with 11.73 million Australian homes and businesses ready to connect and 7.3 million already connected. Six months later, 11.9 million premises were ready to connect and 7.9 million premises were connected.12
Improving speeds: As part its 2021-2024 Corporate Plan, NBN Co announced a $4.5 billion investment package. It allocated $3.5 billion to network upgrades, $700 million to improve business-grade fibre broadband and $300 million to improve fixed broadband in regional Australia.13
Under the plan, the highest NBN wholesale speed tier of up to 1 Gbps will be made available to around 75% of homes and businesses on the fixed-line network by 2023.
NBN Co will enable further upgrades in many communities that are already serviced by Fibre to the Node (FTTN) technology. This will enable customers in these communities to upgrade to a Fibre to the Premises (FTTP) connection allowing them to access faster service speeds when they order a higher-speed plan.
NBN Co expects to extend fibre past around two million FTTN premises by the end of 2023.
It will also invest in newer technologies in its Hybrid Fibre Coaxial (HFC) and Fibre to the Curb (FTTC) networks that will enable premises on these networks to order speeds of up to 1 Gbps.
FTTN: Fibre to the Node Fibre optic cable is laid to a neighbourhood node then existing copper wiring completes the connection to the premises. FTTC: Fibre to the Curb Fibre optic cable is laid to the kerb or driveway then connected to the premises through the copper phone line. FTTP: Fibre to the Premises Fibre optic cable runs from the nearest available node directly to the premises. HFC: Hybrid Fibre Coaxial Uses the premises' pay-TV or cable network for the NBN connection. |
Long-term approach to public ownership: While the NBN has been built, there are no current plans to proceed with privatisation. The government is instead focused on maximising the benefits of the completed infrastructure. Before privatisation can proceed, a number of legislative milestones need to be addressed.14 They include a Productivity Commission review and report, a Parliamentary Joint Committee examination of that report, and a declaration by the Minister for Finance that conditions are right for a sale. This remains an appropriate approach.
Strengthened community obligations: There have been ongoing enhancements to the Statutory Infrastructure Provider (SIP) regime, which obligates NBN Co and some other fixed broadband wholesale networks to supply services to premises upon request. This approach ensures all premises are connected, regardless of commercial viability.
For more information, see Reform 7.2.
Better access for regional Australians: There have been major improvements to broadband services in regional Australia as a result of the NBN rollout. Around 73% of premises outside major urban areas can access fixed-line services through a mix of FTTN, FTTP and FTTC services.
The NBN fixed wireless network now comprises 2,200 towers and 13,000 cells, providing coverage to 250,000 km2. This is 3% of Australia's total geographic landmass and covers 610,000 premises. To complement this coverage, two Sky Muster satellites cover more than 7 million km2, providing access for around 400,000 premises.
The Australian Government has committed $380 million to the Mobile Black Spot Program to improve mobile coverage across Australia. The first five rounds of this program have generated $836 million in new investment, funding the delivery of more than 1,200 new base stations across regional, rural and remote parts of the country,15 providing over 150,000 km2 of new handheld mobile coverage. For more information about the program, see Reform 7.2.
The Australian Government is also improving digital connectivity in the regions through the Regional Connectivity Program. The Regional Connectivity Program is an important part of government investment in regional telecommunications, providing up to $83 million in grants to deliver new or upgraded digital connectivity to regional, rural and remote Australians. The funded infrastructure will complement the NBN and the Mobile Black Spot Program by delivering new and improved access to broadband and mobile connectivity in areas of high economic and social value outside the NBN fixed-line footprint.
Further reform in regulation and legislation:
There have been significant legislative and regulatory changes since 2016.
The Telecommunications Reform Package and amendments to the Telecommunications Act 1997 (Cth) have promoted further competition.16
The SIP regime was established, obliging NBN Co and a number of other infrastructure owners to connect premises to networks, supply wholesale broadband services and (on fixed-line and fixed wireless networks) supply wholesale services that facilitate voice calls.17
The Package also established the Regional Broadband Scheme to provide sustainable funding for NBN Co's fixed wireless and satellite networks.
Measures announced by the Australian
Government in late 2017 and implemented in 2018 have improved the NBN end user experience.
They include rules to ensure service continuity when consumers migrate to the NBN and guidance on how industry should advertise broadband speed claims.18