Australia - National Broadband Network - Coalition Opposition Policies 2011


While it was in government (1996-2007) the Coalition’s telecoms policy was focused on the privatisation of Telstra, and during that time scant attention was given to the need for universal broadband and competition; because of this Australia fell behind its international trading partners in affordable high-speed broadband services.

Towards the end of that period it started to develop policies to address these issues, a key element of which was a $1 billion investment in a regional wireless broadband plan, known as OPEL. At that point it also began to warm up to the idea of the structural separation of Telstra, but no firm policies were announced.

The Labor Opposition went into the 2007 election with a more substantial plan, promising a $4.7 billion investment into a National Broadband Network. Partly due to this Labor won that election.

Subsequently the Coalition, now in opposition, withdrew from the industry discussion that emerged around the Labor Government’s plans for a national broadband network (NBN). The industry was extremely disappointed at the Coalition’s lack of participation but it could not be persuaded, choosing simply to oppose the NBN in its entirety. Increasingly, the message from the Federal Opposition was to ‘kill the NBN at all costs’.

It was only after it lost the 2010 election that it, still reluctantly, became involved in the debate. By that time, however, it was too little too late, as the government, together with the regulators and the industry (including Telstra), had already arrived at a collective agreement on the future of Australian telecommunications.

Finally, in August 2011, the Coalition delivered a more substantial plan, an outline and analysis of which is contained in this report.

Table of Contents

  • 1. Synopsis
  • 2. The Coalition’s plans for the NBN
    • 2.1 Brief outline of the plan
    • 2.2 Analysis of the plan
      • 2.2.1 The plan is doable, but...
      • 2.2.2 There is no economically-viable business model for the plan
      • 2.2.3 The plan will result in either lower broadband quality or higher prices
  • 3. other Analyses
    • 3.1 Waiting for the Coalition’s vision for Australia’s future
    • 3.2 Will the half-built HFC disaster be repeated by the Coalition?
    • 3.3 Pragmatic solutions are needed for 2012
      • 3.3.1 Many issues are not that far apart
      • 3.3.2 The GFC was that ‘opportunity knocks’ moment
      • 3.3.3 The issue of the social and economic benefits
      • 3.3.4 FttH vs HFC and FttN
    • 3.4 Telecoms competition set to deteriorate under a Coalition government
    • 3.5 Analysis of the situation in mid 2011
    • 3.6 NBN turnaround - analysis late 2010
    • 3.7 First glimpse of policies
    • 3.8 Analysis of the Australian Opposition’s broadband policies
      • 3.8.1 Welcome back into the telecoms game
      • 3.8.2 We have moved on since 2007
      • 3.8.3 Poor track record in telecoms policies
      • 3.8.4 The need for a better regional broadband plan
      • 3.8.5 Using existing technologies in the interim
  • 4. Related reports

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Broadband Fixed
Mobile & Wireless Broadband and Media
Regulations & Government Policies

Number of pages 16

Status Archived

Last updated 5 Apr 2012
Update History

Analyst: Paul Budde

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As you know, I have resigned from the Labor Ministry and have decided not to re-contest the seat of Charlton at the next election – both for personal reasons.

Before leaving Parliament, I particularly wish to record my thanks to you for your generous and constructive participation in the deliberations that generated significant economic policy reforms for the Australian community. Continuous economic transformation is a key challenge that faces all Governments.

The development of sound public policy should always be contestable. Ultimately, good and equitable outcomes are not concessions to any particular interest group, but the careful balancing of interests to create the greatest possible benefit for the nation. You have contributed to that, and I sincerely thank you for it.

Greg Combet, Former Minister for Climate Change, Industry and Innovation

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