Several things became clear during the privatisation process of Telstra in the 00s. 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.
At that time both sides of government were in favour of government intervention in order to rectify this situation. Telstra, however, was determined to maintain its monopoly and in the end the government had to step in. This led to the structural separation of the company. At the same time - in 2009 - because of the GFC, the government decided to change its broadband infrastructure plan from a regional to a national one. They 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.
Between 2009 and 2012, NBN Co designed the architecture and completed the various plans. Legislation and contracts were completed in 2012 and shortly after the rollout started based on a 3 year rollout plan that will see annual extensions.
The $36 billion plan includes a government investment of $27 billion and needs to be seen in the context of the $60 billion raised by the privatisation of Telstra.
This report provides an overview of the project since its inception in 2007, as well as an insight into the steps that have been taken subsequently.
Companies mentioned in this report include – NBN Co, Telstra.
Hot topics and technologies mentioned
Hot topics and technologies mentioned in this report include – Fibre, NBN, infrastructure, FttH, FttP, FttN, government, private sector, social and economic benefits.