The Truth about Broadband

Background

The following table has been prepared by the Government and every point is incorrect

Labor's response to this table is outlined in the remainder of this document.

Labor's Broadband Proposal

Australia’s broadband performance is poor: we are ranked only 16th out of 30 countries surveyed by the OECD. Under the Howard Government we have seen 17 broadband plans pass us by, yet Australia still lags a long way behind countries we consider our international peers.

Labor believes this is not good enough.

The impact of broadband on Australia’s future is critical: it is of fundamental importance that we get it right. A poorly thought out broadband plan will not only be waste of tax payers’ money but it will undoubtedly inhibit Australia’s potential, socially and economically.

Labor’s plan for a National Broadband Network will include a fibre to the node network that reaches 98% of Australians and delivers minimum connection speeds of 12 megabits per second. The remaining 2% of Australians not covered by the fibre to the node network will receive a standard of service, which depending on the available technology, would be as close as possible to that provided by the new network.

Labor’s fibre to the node network will be funded using a public equity injection of up to $4.7 billion, combined in partnership with the private sector. The network will be open access, ensuring healthy competition in the telecommunications sector, putting downward pressure on consumer prices.

Response to Howard Government’s Claims about Labor’s Plan

Network Characteristics

1. Coverage

Labor will deliver a fibre to the node network servicing 98% of Australians. The remaining 2% not covered by the fibre to the node network will receive a standard of service, which depending on the available technology, would be as close as possible to that provided by the new network.

Given that 98 + 2 = 100 Labor’s plan will also cover 100% of the Australian population!

Also see "Technology" section below for more information on the coverage of the Government's broadband proposal.

2. Speed

Labor will ensure that the 98% of Australians covered by the fibre to the node network will have access to minimum speeds of 12 mbps. Companies interested in building a fibre to the node network have already indicated that the connection speeds could be as fast as 50 mbps.

The Howard government broadband plan is a two tiered system:

3. Technology

Firstly, deployment of a fibre to the node network is practical in rural and regional Australia – it is critical to our economic future.

Labor believes in parity of service: Australians living in rural and regional areas should have access to the best technologies, where possible.

Fibre based broadband solutions are superior to wireless counterparts. That is why other jurisdictions including UK, USA, Japan and South Korea have already deployed fibre on a national scale. The Minister herself has admitted that fibre solutions are superior to wireless or satellite technologies.

Furthermore, the WiMAX solution proposed by the Howard Government has a number of technical issues:

1. Power limitations apply to the shared spectrum, which will severely limit overall transmission distance: it will not be possible to transmit a wireless broadband service over a 20km radius area, as the Howard Government has claimed, when there is 4 watt power limitation
2. Because use of the shared spectrum in WiMAX deployments is atypical, Australians will require customised computer chipsets in order to access bandwidth delivered over a shared spectrum. In other words, laptop computers will not be able to receive the broadband service.
3. The WiMAX service offered by the Howard Government may suffer from interference, due to the fact that other household appliances share the same spectrum such as garage doors, cordless phones and microwaves.

4. Radius from each site

This is a huge technical error, and clearly shows that the government does not have a grasp on broadband technologies.

Firstly, optic fibres are the means by which we communicate internationally: they connect Australia to Asia and America, and span 1000’s km!!

Secondly, WiMAX is only able to transmit distances of 20km in ideal circumstances, e.g. a laboratory. For example, weather and topology both affect the distance WiMAX can transmit. The Minister herself has acknowledged this, admitting that the maps depicting the Government’s broadband coverage are not realistic since they do not take into account local topology.

Industry experts suggest that the WiMAX coverage from a base station is more like 5-10 km, and this is ignoring power limitation issues.

5. Ownership and Risk

Broadband is an essential utility and is therefore an important investment for the country, ensuring enormous benefits to Australia, socially and economically.

If anything, the Howard Government’s broadband plan is a huge risk to many Australians who have invested in Telstra, since it undermines shareholders assets.

6. Cost to taxpayers for fibre network

Labor believes Australians living in regional rural areas should, where possible, have access to metro comparable broadband services.

The Howard Government’s broadband plan will reach at best only those living in the inner suburbs of the five major cities, where it is economically viable to deploy a fibre to the node network.

7. Additional cost to taxpayers for fast network in underserved areas

Labor’s broadband plan does not discriminate between taxpayers living in urban, suburban, regional and rural areas. The $4.7 billion Labor has committed to build a National Broadband Network is in fact paying for fast broadband services in underserved areas.         

The Howard Government does discriminate between Australians living in urban, suburban, regional and rural areas. In particular the Government’s second rate broadband plan for Australians living in suburban, regional and rural Australia is widely regarded by industry experts as an obsolete technology.

The Howard Government has already spent $5 billion of taxpayers’ money on 17 broadband programs, none of which have delivered true broadband capabilities.

The Howard Government’s plan is a waste of taxpayer’s money. 

8. Price to Consumers

Labor believes in metro comparable prices for Australians in rural and regional areas.

Labor’s fibre to the node network is open access, ensuring more competition between telecommunication providers, which will drive consumer prices down.

Timing

9. Start date

Firstly, the Howard Government’s proposed fibre to the node network for the five major cities has no start date. The only action the Government has taken is to form a committee.

Secondly, the building of a national piece of infrastructure - a fibre to the node network – cannot be performed overnight. There are however some things that can be done straight away to improve services. This includes enabling ADSL 2+ in exchanges, replacing degraded copper.

10.  Completion date

Labor’s broadband plan uses superior technology, which is part of the migration plan to the unanimously regarded ultimate technology: fibre to the home.

Ultimately, Australia has to build better fibre networks. Unfortunately this takes time, but the sooner we start the sooner it will be completed.

The Howard Government’s plan delays the deployment of state of the art fibre based technologies to Australians living in suburban, regional and rural areas.

Would you spend $ on building an extension to a house, knowing that in a matter of a couple of years you will knock it down to build something better?

Finally, the reason Australia’s broadband infrastructure is in such a deficient state is because the Howard Government has sat on its hands for 11 long years. Now, 3 months before an election, it claims it has a broadband plan.

Future proofing

11. $2 billion dollar communication fund

Unlike the Howard Government, Labor will use the $2 billion dollar future fund for the purpose it was meant: enabling Australians living in rural and regional areas to have better access to improved broadband services.

12. Ongoing funding for underserved areas

Labor will keep existing satellite subsidies, to ensure underserved areas receive broadband services.

Labor’s National Broadband Plan includes the 2% of Australians who will not be served by the fibre to the node network. As part of the tender process, parties will be asked to submit a proposal that outlines how they would use the $4.7 billion public equity injection to ensure improved broadband services to the 2% of Australians not served by the fibre to the node network.

The Howard Government’s plan will only provide $400 million every three years to improve broadband services in regional and rural Australia. This will only ensure broadband services in regional and rural Australia lag further behind metro services.

Labor’s $4.7 billion commitment will ensure broadband services in rural and regional areas are comparable to metro services.