Turnbull supports user-pays fibre NBN
Summary: Australian Shadow Communications Minister Malcolm Turnbull has said that he would support an NBN scheme where residents pay to upgrade the last mile of copper to fibre.
Shadow Communications Minister Malcolm Turnbull has said that he would support a scheme where users on a fibre-to-the-node National Broadband Network (NBN) could pay to get their premise upgraded to fibre.

(Image: Josh Taylor/ZDNet)
Turnbull made the comments following a speech at Kickstart 2013 on the Sunshine Coast, Queensland, this morning. He pointed to BT's fibre-to-the-cabinet, fibre-to-the-premise (FttP) mixed network in the UK currently trialling extending fibre out to premises under the FttC rollout to customers who are willing to pay for the privilege. Turnbull said that he would support the same proposal for an NBN under the Coalition.
"Absolutely. I don't see why you wouldn't do that. If you can offer fibre on demand, and the reason you've got that is you've got in these modern [full service access networks], you've got ports that are capable of supporting GPON and VDSL," he said.
"And so if you've got a customer that wants fibre, for whatever reason, then there's no reason, technically, why you shouldn't make it available."
Turnbull told ZDNet in an interview last week that should the Coalition win government, it would conduct a cost benefit analysis to determine the most cost-effective method of rolling out fast broadband across Australia and would likely shift to a fibre-to-the-node rollout, but letting the existing construction contracts run to completion.
He reiterated that Telstra's hybrid fibre-coaxial (HFC) network would not be part of the Coalition's broadband policy, but those HFC areas would be a low priority for rolling out the NBN.
"What I said about HFC is that we're going to prioritise the areas that are poorly served. So areas that do have very good broadband, or very good broadband relative to the rest of Australia, and that would include most of the HFC areas, would not be the highest priority," he said.
"I've not said we would not overbuild, our intention is to continue as planned to overbuild it."
If the Coalition were to attempt to use the HFC, it would require renegotiation with Telstra, he said.
"It is extraordinary that [HFC] is being taken out of commission. In an ideal world, what I would like to see is that anti-competitive agreement with Telstra being rescinded and Telstra agreeing to give the money back, but good luck [with that]."
Turnbull said that the Coalition would not move to privatise the government-owned NBN Co "any time soon", if it wins government.
"I think the NBN Co could be ready for privatisation during Wyatt Roy's second term as prime minister," he joked.
"I don't see that the NBN could be privatised in the foreseeable future. It just isn't a shape that you could sell in any sort of satisfactory way."
NBN Co would be required to provide "at least monthly" updates on the number of premises passed or activated, he said, and details on the cost of passing and connecting premises.
Turnbull again refused to release a proposed price for his own FttN policy compared to Labor's AU$37.4 billion network, saying that the Coalition would first need access to all of NBN's financial commitments.
"If I put out a set of financials, I want them to be right," he said. "We do not know enough about the NBN's commitments."
Josh Taylor travelled to the Kickstart conference as a guest of MediaConnect.
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Talkback
Question for Josh
I could be wrong, but there is something in the back of my mind about the average cost or allowance of the current NBN installation being $400 per home - and that's to simply run the fibre cable from the street. If that's the case, then it would seem that it would cost a home owner a fair amount to run the fibre cable "the last mile" as well as the NBN hardware costs.
The cost
Fibre last mile cost
The cost estimate for delivering fibre only on demand from the nodes is going to be virtually identical to the cost of requesting fibre today from the likes of Telstra or Optus if you want an ISDN voice service or Ethernet data service etc because the process and labour isn't going to change. The only difference will be that it's much more likely that the fibre cable distance will be shorter to the node compared with running the fibre all the way from the exchange.
If you want a fibre internet/voice service today then you're looking at around $1500 per 100 metres of fibre plus a minimum of $5k in setup costs regardless of fibre length. Most fibre install quotes these days from a Telstra exchange are in the $10k-$25k range if you're in a metro exchange area, if you're in a regional area then double it and if you're rural then double it again at a minimum.
So the reality with these coalition promises of "fibre will be an option if you want it" will be that you can either buy a brand new small car or have fibre installed to your home. No home owners outside the leafy suburbs where Malcolm lives could possibly justify the expense of having fibre laid from the node to their home.
Oh Malcolm, if you're reading this, will your future NBNCo be installing VDSL2 modem NTU's in every home as an extension of the NBN network or will you expect us poor tax payers to bring our own VDSL2 modems to save some extra money for your tight-arse government?
Thankyou for your response
BT's fibre to the home cost approx $1k premium
We'll all be livin with the NBN disaster for years, another extraordinary totem for this govt failure.
The Liberals should be moving to a more competitive market solution. Sadly my belief they too would want to micro manage this is coming true.
Transfer he costs and risks to he private sector and get out of the way. He past 6 years have been a disaster best not repeated.
I read the greens have also dump them
What a comedy.
Indeed...
BTW - did you ever back mouth by providing HC with that page number he and others asked for on many occasions... or was it all typical BS?
So Fluddy, If you could cite the page number you already verified in the NBN corporate plan of August 2012 that Turnbull was referring to that would be great. I'm not sure if you need more time but if you are having trouble with the NBNco website I can email you the PDF. Your email is richard.flude@beonic.com? Please confirm this is correct and I'll organise it for you.
Clear Strategy
You noticed that too!
What! The! Fibre!!?
Best I can see is that in the interests of efficiency (or something like that) he wants infrastructure for ADSL, FttN, HFC, and FttH to all be available at the exchange. Oh, and copper, phone lines, and all the infrastructure for wireless and mobile as well.
And cant see why that would be a problem. Wow. Just... Wow.
WTF!?
Isn't the goal to get there as cheaply as possible? Did he get a > sign mixed up with a < sign on his spread sheet? What he proposes could be the most expensive way to provide for Australia's BB for the next 50 years for the sake of a few billion today he'll be wasting tens of billions of the next 10-20 years
who's 'few billion' is it?
Sultanabran
Pilfer
The NBN at any cost is the same, sure faster is better, we just might to get there as we need to and when we can justify it.
Err
Since you like analogies Sultanabran, we are not talking about the vehicle we choose to drive, whether it be an Aston Martin or a Hyundai, we are talking about the infrastructure which is provided for us, which our vehicle of choice is driven upon...i.e. dirt roads or asphalt roads provide by the government...
The NBN is the equivalent of an asphalt road regardless of whether we choose to navigate an Aston Martin or Hyundai upon it vs what appears to be your choice dirt (duh, because it's cheaper and the Libs say)....
FFS if you can't even see the clear difference you may as well give up, sorry 'tiger' :/
RS
If the NBN is a such a good thing give me the list of five, non entertainment based, things that it will deliver.
You wont because you cant.
Defensive no...
As for your 5 ...LOL
Already done...
I could...
meski
40 billion would buy a lot of other essential services which is at the heart of the whole yes/no NBN argument.
I use the Internet for banking and email. My kids play games on it, my wife face books, I buy some stuff like books and event tickets.
My youngest likes to download Barbie movies.
I run ADSL 2+ have 10 wireless devices (3 ipods,3 iphones, 2 ipads, Mac book Air, work laptop, two iMACs and an ADSL connection to Foxtel. I am pretty sure that the older boys have the PS3 connected for online games.
I pay around $80 per month for unlimited access.
Performance is never an issue. So I would be pleased to hear how the NBN is going to improve my current situation and cost me less.