Coalition: Australians will get 12Mbps or more if they win

Discloses $6 billion plan as ADSL 2+ speeds set to become the norm for over 20 years

The Coalition will roll out 12Mbps peak speeds around Australia, but will not promise anything more. The announcement is set to anger the technology industry, which has been supportive of higher speed Internet across the country.

Under the proposal, 97 per cent of Australians can expect a minimum of 12Mbps, which is less than the theoretical maximum currently provided by ADSL 2+ services. The final 3 per cent in rural and regional Australia will be connected to satellite services.

Coalition shadow communications minister, Tony Smith, announced the rival $6 billion broadband policy at the party's room in Canberra.

According to Smith, the proposal will balance the needs of Australian businesses and users with financial responsibility. The coalition said it would use regulatory reform to increase competition and exisiting infrastructure as much as possible.

“It's proportional, sensible and responsible,” he said.

Finance spokesperson, Andrew Robb, said many of the promises made by the company currently rolling out the National Broadband Network, NBN Co, would remain.

“The private sector is quite capable of finding where there is a demand for fibre to the home,” he said. “There is a capacity ...for the private sector to provide given the competition and given the basic backbone that we will provide.

“It will be no different [to the NBN] but we won't be wasting tens of billions of dollars.”

The central planks of the policy are:

  • $2.75 billion for an open access, fibre-optic backhaul network that will provide competition to Telstra’s existing services, with further expected private sector investment of $750 million
  • $1 billion for a wireless network that will address broadband problems in outer metropolitan Australia
  • $1 billion for regional wireless networks
  • $750 million for fixed broadband optimisation to address areas serviced by telephone exchanges where Australians cannot currently get sufficient broadband speeds over Telstra’s copper network
  • Funding for satellite services to cover the small proportion of Australians who won’t be able to access fixed or wireless broadband
  • Existing NBN policy to be cancelled, NBN Co to be wound up and assets sold to the private sector

The entire system will be managed by a National Broadband Commission made up of industry experts, which will in turn be managed by the Communications minister. The body will get $115 million over eight years.

In the press conference, both Robb and Smith emphasised the ability of the competitive telecommunications market to solve the national broadband debate — with Government to step in to provide services where it was not economical for the private sector to do so.

They emphasised the fact that both Optus and Telstra are offering speeds of above 80Mbps in some areas using their HFC cable broadband networks.

Robb claimed Labor had already wasted three to four years with its NBN policy and said the Opposition’s policy would deliver the same speeds as Labor’s fibre rollout could — but without “betting the house on a single technology” — fibre to the home — and without “wasting tens and tens of billions of dollars”.

The finance spokesperson also pilloried Labor’s National Broadband Network Company, describing it as “a bureaucratic, stodgy, cumbersome and unresponsive govt monopoly” that was ironically operating in the most innovative industry sector — technology.

Robb also labelled NBN Co “a dumping ground for highly paid Labor apparatchiks”, referring to the controversial appointment of Mike Kaiser early in NBN Co’s life. Kaiser left a role as Queensland Premier Anna Bligh’s chief of staff to join the fledgling broadband startup.

The press conference became quite heated as journalists questioned the pair. Smith — who appeared tired after weeks on the campaign trail - appeared to visibly lose his temper several times.

“How many households will get 100Mbps? Is it that you don’t know?” asked one journalist.

“You can’t just walk out of here and start digging a trench,” Smith answered at one point in relation to the Coalition’s lack of network maps for its policy. “NBN Co already has its tractors out there digging trenches,” the questioning journalist fired back.

Another pointed out the Coalition’s biggest ticket item in its policy — its backhaul plank — would not be delivered until 2017 — by which point most of Labor’s NBN policy is scheduled to have been delivered.

Renai LeMay contributed to this article

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Comments

Jason

1

Liberals sprout on about "competitive competition" yet it was the Liberals who privatized Telecom (Telstra) and stunted Telecommunications in Australia for the last decade and half.

jb

2

This is a load of rubbish. Services will still suffer because the incumbent Telstra, which is a creation of the Liberals, is still there.
12Mbps??? Not even 1.5Mbps is gauranteed. I have no doubt that I will still be stuck on a RIM infrastructure by 2020 with this load of rubbish proposal.
My vote goes to the NBN. I am sick of the Liberals hoarding the money and giving it away to the rich.

David

3

Actually - ADSL2+ is more than ample. Besides, the cost of $6B is much closer to what is actually required.

Anyone in industry will know that the $45B cost of NBN is a ridicoulus amount and about 10x what is actually needed to build a national broadband network.

However, the interested parties in NBN won't tell you this because they are in line to skim about $30B from us tax payers .... a big incentive to keep quiet and support everything the current govt says about NBN.

st

4

Problem with internet in Australia is not the speed to the home, but the high ping times and lack of backhaul to the rest of the world. Giving 100Mbps to every or 93% of households is not going to make us a more competitive nation. But wasting $40 billion dollars and trying to recoup this in higher taxes will make us a less competitive nation.The Coalition just need to address the broadband blackspot around Australia and let private enterprise provide the rest.

lc

5

jb...telstra was sold as part of the recoup of the massive debt labour put the country in few years back which johnnie and costello took care of. There both as bad as eachother really but still think liberals would be the way to go for the tech industry...i agree with other part though...telstra is the cause and always will be the thorn in the tech industry's side.

Peter

6

Good to see the Liberals go with a platform that will be delivered.

What a waste of taxpayers money Labor's $40 -$100bn NBN is - for something that will probably never be completed.

Before Labor's NBN is even half completed I am sure Wireless will be well over 100Mbps !!

singo79

7

What a total waste of $6billion! This plan it outdated on paper, it was outdated back in 2006 when they thought the plan up and it will be a decade behind if it was ever to get rolled out. The current NBN is mostly future proof, as none of the fibre-optic cable being laid will ever need to be replaced/upgraded. Only the points of interconnect will need to be upgraded to faster infrastructure when we out grow 100Mbps. We have already outgrown 12Mbps and it is an absolute insult to be told by a lackluster Liberal Party that it is state of the art. Honestly if it was state of the art then the more advanced nations in the world would be using it yeah! But there is no one using the Liberal Party's planned network in the advanced nations, they are all using Fibre-Optic to the Homes. Part of the Liberal Party's plan is to put in more fibre-optic backbone, something that the Labor Party has been doing for the last 6 months and is continuing to do for the next 12 to 18 months.

robert

8

this is a joke not a policy!
i'm a disappointed Liberal and disillusioned Telstra shareholder and hence will be voting for Labor's NBN

Kevmeister

9

Thanks Liberals! The Liberal party is surely *the* most forward-looking and progressive political party in Australia.

I can't wait till the future arrives in my exchange and I can gloat about how fast my broadband is.

Oh, wait, scratch that, I already get 19Mbit on ADSL2+.

Did I say progressive? I think I really meant to say depressive.

Robbie

10

I suggest the first reader comment be removed for its anti-semitic nature. I am not Jewish, but I believe comments like that are totally unacceptable.

David

11

Not sure is this discussion is about the relative merits of the major political parties or about the merist of a national broadband network.

singo79 makes some interesting observations about the merits of using fibre and future proofing. But it doesn't cost $40B to build it.

Kevmeister

12

@st: Perhaps you need a course in physics to understand those "high ping times". The circumference of the earth is around 40,000 kms, and since most traffic travels to USA and back, assume a "ping" distance of around 40,000 kms (halfway there, halfway back). That's 133 milliseconds at the speed of light. And light travels slower through fibre-optic cable.

Do you expect the Liberals or Labor to somehow circumvent the laws of physics? The best infrastructure in the world can't overcome these kinds of physical limitations.

Richard Ure

13

Would private enterprise have built the Harbour Bridge? And if it had, would the Bridge have had 8 lanes and two railway tracks?

The Libs continue to lose the plot.

Kurt

14

How fast is a minimum peak speed of 12Mb/sec?
I somebody pulling my leg here?

Jb

15

The NBN will cost the tax payers ~$30 billion provided Telstra honours their part of the agreement.
It would not have cost that much to build if the Liberals did not off load Telstra but rather convert it into a full FTTH network before privatising it. They should have done that a long time ago.
For people to say that it is a waste of money because not everyone will need 100Mbps, the physical line will accomodate up to and beyond 100Mbps but the provider can throttle the speed down to 50Mbps if that is what the end user is willing to pay for. That way providers only have to provide/purchase an adequate amount of bandwidth.
Having a line that will accomodate at least 100Mbps makes sense because this ensure that we will have a scalable network for the future when speed demands hit 1GB and beyond.
The current Liberal Plan is a waste of money because these so called "Band Aid" solutions will only last a few years after and I highly doubt that wireless will provide a scalable solution for the majority of the population. Don't expect private companies to swoop in and save the day in the future too. We wil end up with a non uniform distribution of fibre equipped areas because of the unwillingness of private companies to commit to building anything unless they can make a profit.

Al

16

Something people need to remember when talking about internet speeds is that it is only one side of the picture.
The proposed NBN alternative is a mixture of fixed and wireless services and according to my local liberal member, wireless will be heavily used in areas not already connected to a fixed service.
The problem there is wireless may provide a speed near fixed line DSL but is horrendously latent (the amount of time it takes data to get from your computer to the destination) and very suscepitable to congestion.
Wireless is a great secondary mobile service that the country needs but it is not and can never be a replacement of a tier1 fixed line fiber service.
I would love a FTTH connection that will provide LAN speed connections to work, can you imagine trying to do the same on a wireless or even slow DSL connection?

Another common comment is that its the international liks that make it slow so a FTTH solution will not help.
Keep in mind that a very large portion of the latency from an australian home pc to a US server is the point from the house to the australian side of an international link. Yes, international ping times are higher due to the distance invloved but a nextgen FTTH setup with a correct backbone setup will dramaticly reduce these issues occuring in our backyard.

To those who scoff at all this please goto a reputable source (not a political party) and reseach the advantages of the FTTH network. Wireless has its place but it is not the primary internet connection for home and industry.

The other side of the issue is cost. This is a valid argument but it boils down to what price we as a country put on the evolution of Australian communications. I personally feel that the price tag (and it is NOT 40b) is worth it. You may not but do not confuse the argument of cost with technical ability of the proposed network.

I need NBN

17

I am 3km from the exchange and have a ADSL2+ service. The peak speed I can get is about 5.4Mbit/s. I used to get a few Mbits more but the service is gradually declining due to additional users in the cable lowering the SNR and the degrading of the last 500m of cable due to age.
The NBN would easily meet my modest requirement of 20Mbit/s
The coalition plan of a minimum peak wireless speed of 12Mbit/s would be no better than my current ADSL2+. Even if the Libs plan provided OF to the node, what upgrades will be done to the last 500m of Cu which is where the network needs most work.

J

18

I still can't believe all this talk of the NBN.... assuming Labor win the election and this continues, how long will it take them to implement? It's heading towards 3 years now and all they have done is a few small networks, mainly in Tassie?

This is a government run operation we are talking here.... Private sector might take 10 years? Government maybe 25 years and 10 elections? This will never be complete before it is already outdated....

Wireless is the future, by the time NBN is done we would have had 4g/5g/6g and our humble little mobiles downloading almost as fast....

Al

19

@J,
The length of the implementation is well known and the small networks are the pilot sites for the greater rollout. Work is being completed on new backhauls etc now and the tendoring process is underway for the full rollout.

As for being outdated before its finished, what are you basing this comment on? The fibre rollout will have the capability to massivly lift transmission rates and data flow as technology improves. The same cannot be said for wireless, I suggest that the cost of rolling out new wireless infrastructure everytime a new technology comes along coupled with the fact that radio transmission can never be as fast in both speed and latency than light means the 4g/5g/6g networks you mention will be the ones outdated before they are implemented.

Al

20

@J,

I forgot to mention that this project is not just about mobiles or the home downloader, please try to think in the broad scale.

Charles

21

@david adsl2 is nowhere near fast enough for modern educational plans. It's the upload that's the sticking point. If it were 25mbps up and down, it would be barely adequate.
@lc Telstra was sold because the Libs were convinced that a company is more efficient if it's private (an idea put forth by Margaret Thatcher). This turned out to be untrue and has cost us dearly.

The bandwidth they are talking about for this plan won't be available till 2014, and it won't be complete till 2017.

The World Bank has stated that pulling out of the NBN is the worst economic decision possible for Australia. They anticipate an annual GDP increase of 1.5% from the NBN. That will make the $26 Billion seem like chickenfeed in the long run.
At the end of the day, the Liberals are seeming more and more the Party of the Luddites...

Evan Karagiannis

22

who cares what the government does... it should be the I.S.P's competing to be the best (service/price) among themselves like they have been

sarah

23

I don't think the issue is whether the NBN is better than the liberals wireless plans. You need to weigh up the proposed internet filter, the cost of the national broadband network and the fact that we urgently need to put money into hospitals. Alot of people already have internet access. What we really need to do is help the people on rims, dialup and regional areas and fill in the blackspots. It's not super fast internet, but at least people will have internet and thats what we are trying to achieve. The ability to do video conferencing, watch tv and movies on the internet is simply not more important than the need to build new hospitals. The NBN is far better and we are clear about that. But we do not want an internet filter and if we have to have wireless internet connections instead thats fine. The internet filter can be easily bypassed and we know that too. Wireless is no longer a dial up connection speed. We need to put the taxpayers money into hospitals instead as there are many people who pay tax and do not use the internet at all, but we all need hospitals and medical care and research. Lets not go spending crazy spending on fibre optic cables on every road when the cables under the sea to Hawaii and United States are not even upgraded. It doesn't matter how fast your connection speed is, it won't help you download any faster from overseas, or play online games any quicker. You can do many things on a wireless connection as well as a fibre optic connection. It's not the speed of the connection that matters, it's whether you have a connection at all. Will be a close election.

Charles

24

@sarah - Just so you know, the internet filter is now dead in the water (hooray!). Both the Libs and the Greens are against it, which means it won't go through no matter who wins.
High speed broadband allows for much more than you know...
1. Realtime interactive video so that doctors can diagnose remote patients immediately.
2. Increased education for everyone everywhere. You will be able to attend University from home.
3. Reduce much of the money wasted on tranportation. For example, in the US, 34 million people telecommute to work at least parttime...that's expected to double in the next few years. If we can get our telecommute workforce up to even that 10% level, we could save billions in petrol costs alone.
4. Telecommuting increases productivity of employees by 20-40% according to just about every study, and it saves companies a lot on office space as well as making it much easier for them to entice high value talent from overseas.
5. The increase in taxes from the predicted GDP increase (predicted by the World Bank) will add to the direct income from the wholesale revenue, making the NBN a very cost effective measure.
6. What everyone forgets is that the big bonus of the NBN isn't the download speed, it's the UPLOAD speed. This is what makes interactive video communications possible (which it isn't with the wireless)

wil

25

you know if you're lucky enough to get adsl2 now, you're ahead in line for the private sector to upgrade your exchange hence speeds of at least 50mbps+. telstra already have laid some 100mbps connections in melbourne. the thought of the govt building the nbn and paying telstra $11bn was just too good for them to pass up. maintenance would cost double that too.

with incentives, the private sector would build at least 100mbps backbone to the nodes. in fact might even be cheaper for govt to build fttn, and get private sector to connect the last 5kms to home.

nbn is good but there is enough competition to build it. they just need a cow prod to get them to do it and hopefully these incentives would help.

wil

26

forgot to mention, this project should really be split into 3. connect fttn, connect essential services ie hospitals/police/schools and lastly the consumer. problem with this is the money is made when selling to consumer. but this way, there is priority on who gets connected first.

sam

27

I worked in the IT area within an eductational institution. They recently purchased hd video conferencing equipment and a high speed internet connection (AARnet ). What a waste of cash!
Its hardly used, and when a teleconferences does happen, its usually done with Skype and far end users on a home connection, it transfers the same info only slightly fuzzier for a fraction of the cost. I saw the same thing on Insight last night, a live cross to someones home via Skype. Why buy the a rolls royce when a commodore will meet your needs?

humbug

28

Sam, the "commodore" you speak of is clapped-out and is destined for the scrap yard. The Libs' proposal is nothing more than a set of mag wheels. For that matter, why bother with the commodore? My great grandad got by just fine with his horse.

TuffGuy

29

This country will remain in the technological backwaters as long as Howard's Telstra monopoly remains. The Liberals will never structurally separate Telstra because they are obliged to look after all the mum and dad investors they SUCKERED into buying shares. They seem to forget Labour's original plan was costed around the same as the Liberal's new plan until the Telstra monopoly got in the way making the entire plan unworkable and impossible.

gnome

30


@Jason and TuffGuy, both sides of politics are equally responsible for the Telstra monopoly mess.

Keating corporatised TA into Telstra with the present structure, and then Howard sold it like that.

What on earth were they thinking?

Stu

31

The NBN will NOT be direct fibre to the home - each will be split to about 32 homes... so max will be about 78Mbps. By the time this is all built, wireless could have been faster and as the Liberals have planned, competition would have expanded on the fibre "backbone" to deliver fibre speeds to whoever wants to pay for it. Labour is feeding it's fat cats and mates with this ridiculous cost for the NBN! Build the backbone fibre network, upgrade the exchanges and away we go! We are not that far behind the world. Just go to Speednet listing to see we are even in front of the UK and even Singapore right now! We are No. 34, the US is No. 29... out of 181.

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