National Broadband Network & Fibre to the Home: Fast Fibre Optics

The National Broadband Network (NBN) is the largest infrastructure project in Australian history. Its goal is to provide universal broadband Internet access. The Government regards broadband as critical infrastructure – akin to road and rail – and has determined that such an investment will have a multiplier effect across many industries, helping the whole of Australia.

National Broadband Network Revealed

Australia's broadband access currently lags behind that of other nations. The NBN represents an ambitious plan to launch the country to the forefront of telecommunications. It will be a fibre-to-the-home (FTTH) network providing 90% of homes with broadband Internet access of up to 100 Megabits per second (Mbps). The 10% of homes not served will be provided access through ADSL, wireless, and satellite broadband.

The rollout of the NBN will start with regional areas where competition between providers is low and prices for consumers are high. The first roll out to Tasmania has already begun. Stephen Conroy, Minister for Broadband Communications and the Digital Economy, has stated that they will deliver a minimum of 12 Mbps to every Australian, forty times faster than what most get today.

Fibre-to-the-Home Network Architecture

Fibre-to-the-home – sometimes called fibre-to-the-premises or FTTP – is a broadband network architecture whereby fibre optic cable replaces the traditional copper cable of the last mile of transmission. Fibre optic cable offers significantly faster speeds, allowing end-users to download large amounts of data much more quickly.

This technology is considered 'future proof' because the cable would not have to be replaced to increase broadband speed. Rather, speed is based on the retailers' technology, like headend facilities and set-top-boxes. Located above ground on customers' premises, it's much easier to replace these than to replace underground fibre. It's also far more cost-effective. That the technology be upgradeable is key to the plan.

The NBN Company

The Government established a company to invest up to $43 billion over the life of the NBN, some of which will be funded privately. Initial funding will be provided by the Government – $4.7 billion. The Government will be the majority investor, with private investors allowed to hold up to 49%. Five years after the NBN is complete, the Government's share of the company will be sold off.

The company will provide open-access wholesale services only. This means that the NBN company, as the network operator, will not compete with retail service providers for customers. For example, many different companies may offer television services to be delivered through the NBN, but the NBN company itself is excluded from offering those services. This creates a level playing field where providers compete with one another, but not with the company operating the infrastructure, thus removing any conflict of interest or favouritism. But the fibre is not solely dedicated to television services; it's a trans-sector model, allowing diverse industries to use the same infrastructure to deliver services – healthcare, education, utilities, media, and so on.

Benefits of the NBN

The benefits of the NBN are myriad. The Department of Communications, Information Technology and the Arts' "Broadband Blueprint" stated, "Broadband will enhance the range of consumer services such as digital TV and digital devices in the home. It will produce further growth in business productivity and result in better quality services, for example in e-commerce, e-banking and e-health." Stephen Conroy has also stated the NBN will improve Australia's carbon footprint through use of 'smart' grids to manage energy consumption. Finally, it's estimated the NBN will provide 25,000 jobs each year for eight years, thus blunting the impact of the global economic recession.

The National Broadband Network launches Australia from the middle of the broadband pack out to the front. It establishes one network for many industries to use, stimulating growth and innovation, and it allows everyone to benefit from the economic multiplier effect of infrastructure investment. If successful, it will serve as the standard by which other nations shall be judged.