The supply chain for digital network termination devices was briefly interrupted in February 2021 following a global shortage of a particular chip set. This forced NBN to pause HFC connections.
Also, the global supply chain for telecommunications labour and equipment has been heavily disrupted by the COVID-19 pandemic at a time when the demand for new equipment and specialist labour is very high. These challenges present strategic risks and illustrate how all network operators should be doing more to mitigate global supply chain risks and equipment shortages. Australia's 5G mobile network operators are particularly vulnerable, with a small number of high-tech hardware suppliers catering to the needs of many hundreds of technology companies worldwide.
The Department of Infrastructure, Transport, Regional Development and Communications should work with the telecommunications industry to identify and mitigate the risks of low supply chain resilience.