NBN faces irrelevance in cities as competitors build faster, cheaper alternatives
February 28, 2018 6.12am AEDT
Ongoing cost, technology and customer service problems have damaged the NBN brand. Mick Tsikas/AAP
Author

    Allan Asher



Malcolm Turnbull is now connected to the National Broadband Network (NBN) at his Point Piper home on a 100 megabits per second (Mbps) plan, it was revealed in Senate Estimates yesterday. But only because his department intervened to avoid delays affecting other customers.

And while the Prime Minister might be happy with his NBN connection, that’s not the case for the 2.5 million customers waiting on a connection through their pay TV or cable service who have been left in limbo.

Lauded in the 2009 Commonwealth Budget as the single largest nation building infrastructure project in Australian history, the NBN is at risk of becoming an expensive white elephant in our cities. Years of political interference, poor technology decisions and a monopoly business attitude have damaged the brand.

Rather than meeting its objective of connecting 90% of homes and workplaces with broadband speeds of up to 100 Mbps, the NBN is looking more like a giant sponge. It soaks up public infrastructure dollars and returns high prices, long delays, unacceptably slow data speeds and service standards that are now the subject of an ACCC investigation.

As a result, a growing number of competitors are bypassing the NBN by undercutting prices and beating performance standards.


Adelaide bypasses the NBN

The latest challenge to the NBN came after South Australian Premier Jay Weatherill denounced the “very poor NBN outcome” and last week announced A$35 million in funding for an Adelaide fibre network alternative if he is reelected in March 2018.

The plan was warmly welcomed by Mighty Kingdom, an app and games developer who told the ABC, “I don’t have what I need to get me to the rest of the world.”

This follows news announced last year that Adelaide City Council is working with TPG to deliver an NBN-alternative broadband service to local businesses. The service promises fibre internet up to 100 times faster than the NBN, at lower prices, and with no installation costs for city businesses or organisations.

Lord Mayor Martin Haese said:

    This technology will be a game changer for the city of Adelaide. It will be a boom for local businesses and other organisations, but will also attract business from interstate and across the globe.


Meanwhile two aggressive startups in the Melbourne market are hoping to take a serious bite from NBN’s lunch.

Lightening Broadband is connecting homes and businesses using microwave links capable of delivering both 100 Mbps download and upload speeds. That’s better than the comparable NBN Tier 100, which offers 90 Mbps download and 30 Mbps upload speeds.

The company is constructing microwave transmitters on tall buildings, connected to the telco’s core network using microwave links. Customers within a two-kilometre radius share a microwave transmitter, requiring a dish on their roof.

Another telco start-up, DGtek is offering its customers a full fibre alternative service.

Upon its launch in 2016, DGtek’s founder David Klizhov said:

    “Ideally the NBN would have worked if it was fibre to the home, but it’s taken quite a lot of time and we thought that we could have a go at the Australian market using technology that’s been implemented already overseas.”

DGtek uses Gigabit Passive Optical Networks (GPON) and runs it directly into tightly packed homes with the dense population of inner Melbourne. As a sweetener, DGtek offers free internet service to government organisations – such as schools and hospitals – in areas they service.
The threat from 5G and other new technologies

New entrant competition is not the only threat to NBN Co. Optus and Telstra are both launching 5G services in 2019. This represents a quantum leap in wireless technology that could win away millions of current and potential NBN customers.

While Vodafone CEO Inaki Berroeta has said that 5G is unlikely to replace the NBN in Australian homes, Optus Managing Director of Networks Dennis Wong recently told BIT Magazine:

    Everyone has heard of concepts like self-driving cars, smart homes, AI and virtual reality, however their full potential will require a fast and reliable network to deliver. Seeing 5G data speeds through our trial that are up to 15 times faster than current technologies allows us to show the potential of this transformative technology to support a new eco-system of connected devices in the home, the office, the paddock and in the wider community.

Cont......

Its a common saying governments are bad at picking winners and the current generation of the ALP again proved this by over investing in a legacy technology !

Setanta wrote on Mar 2^nd, 2018 at 1:48am:


So you have trouble reading ..... NBN is the ALP's baby its legacy technology do you need help with some of the words.

Setanta wrote on Mar 2^nd, 2018 at 2:33pm:


No NBN is legacy technology so your ignorant as well as illiterate ? Yes governments are bad at picking winners especially the ALP you just need to get over it the NBN is a big dud !

RightSaidFred wrote on Mar 2^nd, 2018 at 7:22am:


wasting your time and effort as nobody is dumb enough to believe this rubbish.

NBN Faces irrelevance as competitors.......

that was always a very good probability.
To invest a lot of money in a fixed infrastructure in a rapidly developing industry is very flawed.

RightSaidFred wrote on Mar 3^rd, 2018 at 3:05pm:


The problem is if everyone went to 5g from fixed services you would have so much contention it would degrade your service. There would not be enough radio spectrum to go full wireless for everyone, it's a limited commodity, unlike fibre.

http://www.abc.net.au/news/2017-10-25/5g-vs-nbn-mobile-network-convenient-but-ex...
http://www.worthview.com/5g-wont-replace-fixed-broadband/

RightSaidFred wrote on Mar 3^rd, 2018 at 6:59pm:


I've not made any financial statements, only tech. 5G cannot service everyone. A fibre network is the way to go whoever builds it, the mess the libs have made of what would have been an all fibre network is a disaster, it would have been better if they just cancelled the project.