Labor’s NBN rollout is better than the Coalition’s version of the NBN which deliver $16 billion more for a buck, and it’s still a significant burden for the cost of rolling out the broadband to the bush.
According to Mr. Turnbull, for them to save money they will use an MTM or multi-technology-mix and slow or lower connection speeds – essentially combining the optic fibre with the wireless technology to the local nodes or junction points in the metro area. Labor’s fibre to the premise plan will result in higher installation cost and faster connection speeds.
A cost benefit analysis, commissioned by Abbott government shows that instead of $2 million boost from Labor’s generous plan, Mr. Turnbull’s plan can generate an $18 million economic benefit.
Dr Michael Vertigan, head of the government independent panel of experts said that rolling out NBN to the bush will cost them “a net of $6 billion relative to the unsubsidised rollout”. The saving, which is relative to Labor’s plan will come from metro areas.
“This largely reflects the net costs of delivering higher speeds to rural and remote areas via fixed wireless and satellite.”
The Vertigan panel said the wireless and satellite connections were “a last choice technology (but with) an important role to play in rural and remote Australia where no other options are available”.
A fair policy dictated the NBN to subsidise broadband for the bush even though Mr Turnbull described that rural and remote area are “most expensive” customers to service.
“It’s clear if you’re going to have any sort of equity in terms of access to telecommunications in rural and regional Australia, there will have to be some form of subsidy,” he said.
It’s not only the metro areas are in need of broadband service. Anthony Gibson a NSW Farmers Telecommunications spokesman said that it was fair enough to rollout NBN to rural areas to ensure a level field for rural business.
“Our policy has always been to call for metropolitan equivalents… so whatever the government can do to meet that, we applaud,” Mr Gibson said.