Thursday 11 April 2013

The NBN Question ?

The opposition has revealed it's alternative to Labor's NBN rollout.    Labor will spend $ 44 billion to run a connection directly to all home addresses in Australian cities and towns.   The opposition will spend $ 29 billion to run that connection to a " node " - a junction box in each street, from which the connection to individual homes will be by the existing Telstra copper wires that presently connect our phone system.

Using the copper wires will slow the delivery of Broadband, but it will be hugely higher than what we are presently getting, and the contention is that the service will meet most people's needs.   The higher speeds are needed by business users and a direct connection will be provided where needed in business centres throughout the country.

This is a money saving compromise.  There are other imperatives waiting for money to be available and this includes the disability scheme and Gonski.   Where the present NBN rollout has occurred, the takeup by residents has certainly not been universal.   Providing a high speed connection to each and every home is perhaps setting the benchmark too high.  We might be better off with a scheme that improves business efficiency to world standards, lifts individual home speeds to a higher standard - and can be extended to individual homes direct connections when demand requires.

Detractors use scare tactics against  using the copper wire system and suggest it will cost individuals $ 5000 to get a connection upgrade.   Such upgrades will probably follow a similar scenario to the supply of piped gas.   The gas lines do not run in every street and the gas provider usually required twenty percent of residents to request a gas connection before work would commence on extending the supply.   Monthly fees for copper wire service will be lower, hence when the direct connection is made it will simply be a matter of paying a monthly fee increase for an improved service.

One of the biggest benefits of using the " node " system - is getting the NBN connected to Australian homes years earlier than by the individual connection that now applies.  Many critics expect that the $ 44 billion price tag will end up costing much more - and getting the NBN underway is way behind schedule at even this stage.  Money saved would be far better spent on other critical needs.    The sheer economy of scale makes a lot of sense.

Both sides of politics will state their case - and then it will be up to the voters.   Whichever way the decision goes, we are certain to get an upgrade in Broadband speeds - and that is an improvement on where we are now !

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