Millions of Australians are set to get access to ultra-fast broadband under a $3.5 billion upgrade to the NBN, expected to be finished by 2023, in a backdown that has drawn the ire of Labor figures past and present.
Key points:
- Fibre To The Node, Fibre To The Curb and Hybrid Fibre Coaxial networks will all be upgraded
- The works are expected to create about 25,000 jobs in the next two years
- Federal Labor has described the plan as a "wasteful backflip"
The change in policy has led former prime minister Kevin Rudd, whose government first promised the National Broadband Network, to accuse the Coalition of a massive about face on the politically charged issue.
The major shake-up will lead to 6 million homes being able to pay extra to access to internet speeds "of up to" 1 gigabit per second.
While customers will not have to pay a connection fee to be hooked up to the NBN directly, they will have to upgrade their plans and potentially pay a higher price, depending on how fast they want their internet to be.
Currently the mandatory minimum is 25 megabits per second.
But Mr Rudd said that after years of opposing Labor's plans to extend the fibre-optic network directly to most homes and businesses, the Government had made a 180-degree turn.
"This is a monumental policy backflip by the Morrison Government, which has spent seven long years attacking my government's original plan," Mr Rudd said.
"So Mr Morrison deserves no credit whatsoever for this.
"It is seven years of lost opportunity for Australia."
The Government expects the plan to create 25,000 jobs in the next two years across industries including construction, engineering, transport and project management.
The Federal Government said the upgrade would involve expanding the Fibre To The Node (FTTN) system by building "local fibre networks" that would run along street fronts, enabling people to connect their homes directly to the network when they wanted.
"Very importantly, it will be based on the principle of demand," Communications Minister Paul Fletcher said.
"So we'll roll the fibre down the street, but then the fibre lead into the home will only be built when there's a customer order."
There will also be upgrades on the Hybrid Fibre Coaxial (HFC) network to support faster speeds, work on the Fibre To The Curb (FTTC) network to deliver "consistent" speeds of 100 megabits per second and work to resolve in-home cabling issues for houses on the FTTN network.
Mr Fletcher said now was the right time for the network upgrade.
"There is a long-term trend of broadband demand growth — with a very significant spike this year as COVID-19 has changed the way we use the internet," he said.
"And it means NBN Co is now well placed to invest in Australia's broadband infrastructure to meet Australians' growing appetite for faster speeds.
"This is part of a $4.5 billion investment that NBN is making, financed by borrowing in the private sector market, so it doesn't hit the budget bottom line."
The investment also includes $700 million to make business-grade fibre more affordable and accessible, and $300 million for partnerships between NBN Co and governments and local councils in regional Australia to improve broadband.
The surge in people working from home during the coronavirus pandemic saw an increase of up to 80 per cent in internet demand and slow speeds in some cities.
The NBN has remained a contentious issue in politics and across the country for more than a decade.
In 2009, Mr Rudd's government promised a fast NBN with optical fibre cables direct to most homes and businesses.
Instead, there is now a mix of technologies including optical fibre, copper wires, Hybrid Fibre Coaxial (HFC), fixed wireless and satellite.
But of most concern to Australians, particularly during the pandemic, are the slow internet speeds or difficulty connecting to the network in the first place.
"The 2013 decision by the Coalition to roll out the NBN quickly, then phase upgrades around emerging demand, has served Australia well," Mr Fletcher said.
Shadow Communications Minister Michelle Rowland also described the decision as a backdown by the Government, labelling it the "most extraordinary, wasteful, expensive public policy backflip in a generation".
"For 10 years this Government has been opposed to having world class fibre-based broadband," she said.
"Well forgive me if Labor turns around and says 'geez, I wish we had have thought of that'."
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