- The Australian government is investing $3 billion to upgrade 95% of FTTN properties to FTTP, improving broadband quality.
- While the upgrade is a positive move, rising NBN costs and affordability concerns could overshadow the focus on faster speeds.
- As the election nears, the NBN's pricing will likely be a key issue, influencing voter perspectives on value and infrastructure.
The Australian government’s recent announcement to invest $3 billion into upgrading 95% of remaining fibre-to-the-node (FTTN) properties over the next five years has caught the attention of many.
Addressing issues with outdated technology
This substantial investment promises to bring fibre broadband to 622,000 homes currently reliant on FTTN, which uses outdated copper lines to deliver Internet. The move represents a significant step towards modernising Australia's National Broadband Network (NBN) by shifting the majority of FTTN connections to fibre-to-the-premises (FTTP), the original model championed for its superior performance.
This upgrade, which is set to be completed by 2030, is likely to become a key issue in the upcoming Australian election, especially as the political debate intensifies around infrastructure and cost-of-living challenges.
Government commitment vs. taxpayer burden
The $3 billion allocated for this upgrade highlights both the government’s commitment to improving Internet infrastructure and the ongoing financial burden the NBN has placed on taxpayers. However, while the shift to FTTP is a welcome improvement for FTTN customers, the question remains: will the rising costs of the NBN be a point of contention for voters?
The announcement follows years of uncertainty surrounding the NBN’s rollout, which was initially promised to provide fast and reliable Internet via fibre-optic technology.
However, the previous government’s multi-technology mix (MTM) plan, which incorporated FTTN and other less robust technologies, was criticised for failing to deliver on the speed and reliability that Australians expected.
As a result, FTTN properties, which have long suffered from slow speeds and frequent faults, will finally be upgraded to full fibre connections under the new plan.
NBN’s strategic move to fibre-based networks
On a business level, this shift is a strategic one for NBN Co, which has faced escalating maintenance costs with FTTN. Fibre-based networks are less expensive to maintain and operate in the long term, making the full transition to FTTP a smart move from an operational standpoint.
FTTN connections have historically been problematic, with faults occurring four times more frequently than on FTTP connections. On top of this, the number of Australians switching to alternatives like 5G and satellite services such as Starlink is increasing, putting further pressure on NBN Co to deliver a more competitive service.
However, the question of affordability looms large. In recent years, NBN Co has faced criticism over price hikes on wholesale services, with major Internet providers like Telstra, Optus, and Aussie Broadband raising prices by as much as 10% on popular speed tiers. This has come at a time when Australians are grappling with a cost-of-living crisis, and many are turning to more affordable alternatives like 5G home Internet plans, which often offer lower pricing.
Will affordability be prioritised in the political debate?
As the election approaches, the affordability of the NBN will no doubt play a central role in the political discourse. While the government has taken steps to regulate NBN pricing through the ACCC, ensuring prices remain tied to inflation, it remains to be seen whether these efforts will be enough to convince voters that the NBN is an asset that delivers value.
Ultimately, the success of this $3 billion investment will not only depend on its ability to improve the quality of Internet access but also on how well it addresses the ongoing affordability challenges faced by consumers.
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As the election looms, the fate of the NBN could become a significant political point, with both sides of the aisle vying to prove who can deliver the best value for Australian households.
If you’re looking to upgrade your Internet service or explore better options outside of FTTN, now is the perfect time to review your plan. The team at Compare Broadband can help you navigate the wide range of providers and plans available to ensure you get the best deal for your home or business.
Call today on 1300 764 000 to speak with an expert and discover how switching could improve your Internet experience while saving you money.