Coalition's NBN to cost almost AU$30bn

Coalition's NBN to cost almost AU$30bn

Summary: Shadow Communications Minister Malcolm Turnbull has said that the Coalition's alternative to Australian Labor's National Broadband Network policy would cost almost AU$30 billion.

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TOPICS: NBN
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Shadow Communications Minister Malcolm Turnbull has confirmed that his scaled-back version of the National Broadband Network (NBN), replacing a fibre-to-the-premises (FttP) deployment with a fibre-to-the-node (FttN) network, would cost AU$29 billion to build.

Turnbull will today officially release the Coalition's broadband policy, after many weeks of speculation. As Turnbull has previously outlined, if the Coalition wins the September 14 federal election, the NBN would be scaled back, with many existing premises receiving broadband via a fibre-to-the-node network, rather than to the premises. This will rely on the Coalition being able to renegotiate the AU$11 billion deal with Telstra in order to access the copper network to install these upgrades.

According to industry publication Communications Day, a total of 22 percent of premises will be passed by fibre to the premises, and 71 percent will be passed by fibre to the node, with the last 7 percent passed by wireless and satellite services.

Telstra and Optus are expected to be able to continue to offer services via their hybrid fibre-coaxial (HFC) networks, and those areas covered by the networks will be a lower priority for the Coalition's NBN rollout.

The aim would be for all Australians to have access to at least 25-megabits-per-second (Mbps) download speeds by 2016, with a view to get speeds up to 100Mbps by 2019.

Turnbull told ABC's AM program on Tuesday morning that his version of the policy would be completed by 2019, and would require total funding of just under AU$30 billion. This puts it just two years ahead of the forecast completion of Labor's project. The capital required would be around AU$20 billion, which would be $17.4 billion less than the cost of the current NBN. Turnbull, however, has claimed that the current policy will be delayed by five years, and the cost will blow out up to AU$94 billion.

Turnbull said the Coalition's policy is the "world's best practice" and follows in the footsteps of what other countries, such as the US and the UK, are already implementing.

More to come.

Topic: NBN

About

Armed with a degree in Computer Science and a Masters in Journalism, Josh keeps a close eye on the telecommunications industry, the National Broadband Network, and all the goings on in government IT.

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32 comments
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  • What a muppet

    Far cry from the figures he was spruiking a year ago for an alternative NBN plan. Nearly 3 x more. For a slower NBN using Telstra's copper (ARE YOU KIDDING ME MT???). His own figures got up nearly 3 fold, and he's predicting under current FttP the investment will double. He's so good with pulling number out of his rear these days. Anyone notice?

    This is ridiculous.

    I'm in a tough quandry right now where I cannot really vote labour due to obvious reasons, but there's no way on earth I could ever vote that muppet in either.

    For goodness sake, let's get out of the dark Telstra ageing copper and get with the Fibre already. Death to copper - it's crap technology. Forget it. Plus the 800+ million a year maintenance cost alone. NUTS!
    Ramrunner-5dd3e
    • The comparatively small difference in cost

      between FttN and FttH suggests that it would now be silly to only do FttN. Turnbull's original commitment was that FttN would be "considerably" cheaper and that is clearly not the case.
      Wakemewhentrollsgone
      • And...

        Where is the money coming from/going to?

        Like the current NBN, will debt be used and repaid by NBN users or will this "actually' be taxpayer funded and ergo, a much larger impost on "us", with profits going to private companies?
        RS-ef540
    • you can't vote Labor for obvious reasons?

      would those reasons be:

      - Australia's top-performing economy and standard of living?
      - The fact that Gillard is a female redhead?
      - You get your information from media companies who are terrified by the NBN and have engaged in the most heinous attack on government this nation has ever seen?
      - You're a rusted-on Labor supporter who loves Kevin '07?
      - You're actually incredibly progressive and want to cut off your nose to spite your face since Labor isn't progressive enough?

      None of those make for a 'quandary' when you have the vaguest notion of the damage the Liberal idiot patrol are aiming to do to this nation at the behest of Gina and Twiggy.
      datreus
  • Vote coalition last

    Or second to last, I just remembered Family First. For all the disillusionment with Labor, Australia isn't in a bad position compared to many other countries (PIIGS, USA etc)

    And don't forget, this is Malcolm's estimate, the NBN figures are a lot firmer than this. I'd expect the 29b figure to rise.
    meski.oz@...
    • Not so!

      "And don't forget, this is Malcolm's estimate, the NBN figures are a lot firmer than this."

      Conroy hasn't clue about the real cost. He is pretending that the cost of the NBN has been audited, when the reality is far different.

      Read either this:
      http://www.theaustralian.com.au/opinion/cut-paste/the-minister-for-wearing-red-underpants-on-your-head-on-the-cost-of-the-nbn-thingy/story-fn72xczz-1226615231916

      or this
      http://blogs.news.com.au/heraldsun/andrewbolt/index.php/heraldsun/comments/national_bull_numbers/
      Wakemewhentrollsgone
      • Read either this or this:

        Why would I want to read an inaccurate diatribe from welded on Liberal supporters incapable of thinking for themselves?

        I think I have better things to do with my time as do most people.
        Bob.H-819a5
      • I haven't regarded NewsCorp as authoritative...

        On anything they say about the Coalition or Labor for some time now. Andrew Bolt? You are jesting, I hope.
        meski.oz@...
        • I agree with you!

          Surely you jest? Andrew Bolt is so biased I'm surprised they let him have his wonot he's own show.
          martin_js
        • And yet neither of you try to prove that the comments are incorrect

          or out of context.

          Both sources do little more than quote statements by Conroy. He shows himself to have little ideas of what he is talking about.

          If you can prove the comments wrong, I'd listen. Unfortunately, your closed minds will ensure that you learn nothing . . . but that again, that is how the Left operates!
          Wakemewhentrollsgone
          • WTF...

            You have the NBN - say it's great.

            Admit at $30B for FttN, it would be silly not to simply do FttP...

            Yet go off on some strange political rant?
            RS-ef540
          • I'm not really left, except to your mind.

            But I'm not crazy enough to use Bolt or Murdoch as sources. I'm waiting for you to quote someone that at least knows the subject. The only thing that will convince me to vote Labor is the harebrained schemes the Coalition comes up with. If they promise to continue the NBN, I'll seriously consider them as an option.
            meski.oz@...
          • Should have replied 2 days ago!

            I'm not left or right for that matter. I'm a swinging voter, the only group that actually looks at the policy's and resides which way to vote. I've voted Labour, Liberal and National in the lower house and vote below the line in every upper house election I can remember.
            Much better to think about your vote rather than voting the same way for every. Those type of voters never get change and are never responsibly.
            martin_js
      • Citing the Oz?

        Geez Restricted_Access, you can be in favour of the Turnbull option, that's fine but wrong in my opinion. However, you do yourself no favours by citing the Australian which just happens to be the champion of the Abbott camp. Turnbull's estimate today is only $7b short of the much tighter estimate offered by NBN and NBN has fibre all the way to the premises. This will not have to be upgraded, at significant cost, as the copper "last mile" will be, in the next 10-15 years. Finally, at least NBN has the benefit of actually having signed contracts in hand to support its estimate. Malcolm has, at best Macquarie Bank, and that's not so flash over the last few years.
        KRP1950
        • Read the bloody article before you comment!

          All it does is quote Conroy. There is transcripts from interviews he has given that show he has no idea what he is talking about. Have a look at the message rather than source. If that still doesn't work you, then find a transcript of Conroy's comments elsewhere.
          Wakemewhentrollsgone
  • Typical

    "Telstra and Optus are expected to be able to continue to offer services via their hybrid fibre-coaxial (HFC) networks, and those areas covered by the networks will be a lower priority for the Coalition's NBN rollout."

    Yes, god forbid their mates have any competition :/
    Tinman_au
  • Simple Solution

    Vote for Labor this election so the NBN rollout of FttN is completed, it is in the best interest of our country and our future.

    I agree with Ramrunner comments, and I believe everyone wants the FttN version instead of some butchered band aid that
    is being proposed by Turnbull.

    After all, it's our money. Our deficit maybe 100 billion +, compared to the US of 14 Trillion +, I would say we can afforded it.

    Then lets look at all the Muppets in 4 years and decide which I to place in office.
    in-motion
    • FTTN?????

      I do hope you mean FTTP and not the FTTN.
      Bob.H-819a5
      • FTTP

        Sorry Bob, meant FTTP.
        in-motion
  • Can I suggest if you don't want to vote Labor

    That you at least contact you nearest coalition member or one running to complain about the dodgy coalition NBN policy. The main trouble with it is by the time they finish it who ever is in government at the time will have to spend more to update it AGAIN.

    Lets get it done with the latest TECH NOW!
    martin_js