The National Broadband Network (NBN) is Australia's national wholesale open-access data network. It includes wired and radio communication components rolled out and operated by NBN Co, a government-owned corporation. Internet service providers, known under NBN as retail service providers (or RSPs), contract with NBN to access the data network and sell fixed Internet access to end users.
Rationales for this national telecommunications infrastructure project included replacing the existing copper cable telephony network that is approaching end of life, and the rapidly growing demand for Internet access. As initially proposed by the Rudd government in 2009, wired connections would have provided up to 100 Mbit/s (later increased to 1000 Mbit/s), although this was decreased to a minimum of 25 Mbit/s in 2013 after the election of the Abbott government.
As the most expensive single infrastructure project in Australia's history, NBN was the subject of significant political contention and has been an issue in federal elections. The Liberal government initially stated that the "Multi-Technology Mix" (MTM) would be completed by 2016, however this was changed after the election to 2019 and then again to 2020. The project cost jumped from the Liberal Party's estimated $29.5 billion before the 2013 federal election, to $46–56 billion afterwards. In 2016 NBN Co. said it was on target for $49 billion, but by late 2018 the estimated final cost was $51 billion.
History
2007 A fast broadband initiative was announced in the run-up to the 2007 federal election by the Labor opposition with an estimated cost of including a government contribution of $4.7 billion that would be raised in part by selling the Federal Government's remaining shares in Telstra.
The Labor Party Rudd government was elected on 24 November 2007 and initial planning commenced.
The NBN was originally to deliver its wholesale service through fibre to the node (FTTN) and reach approximately 98% of premises in Australia by . A new satellite network would be built to reach the rest of the country.ALP: Stephen Conroy, Kevin Rudd and Lindsay Tanner, (March 2007), New directions for communications: a broadband future for Australia: building a national broadband network, Australian Labor Party policy document
2008 An initial request for proposal (RFP) to build the NBN was issued but not executed. Organisations lodging compliant proposals were neither able to meet the requirements nor able to raise the necessary capital. A non-compliant proposal was received from Telstra and they were excluded from consideration.Australian National Audit Office, (3 February 2010), Performance audit report: The National Broadband Network Request for Proposal Process [Auditor-General Report No. 20 of 2009–10, Canberra, accessed 6 March 2026
2009 The Rudd government announced it would bypass the existing copper network by constructing a new national network combining fibre to the premises (FTTP), fixed wireless and satellite technologies. The first Rudd government had proposed to develop a modern optical fibre telecommunications network to provide broadband access to 93% of the Australian population at 100 Mbit/s, with those areas and people outside the network footprint to be provided broadband access through fixed wireless and geosynchronous telecommunications satellite.
The cost estimate rose to $43 billion and later revised to $37.4 billion. The project was to be financed by a combination of a Federal Government investment of $30.4 billion and private investment for the remainder.
Dividends were to be paid after completion in 2021 to the federal government, with the government's contribution repaid by 2034. A return on investment of 7.1% was expected on revenue of $23.1 billion by 2021.
Tasmania was selected for a trial deployment based on the Tasmanian Government's submission to the RFP. A forced structural separation of Telstra was threatened but not completed. NBN Co was established on 9 April 2009 and Mike Quigley appointed chief executive officer on 25 July.
2010 An implementation study was commissioned in April 2009 and released on 6 May. In April, NBN Co issued a request for tender (RFT) for the major FTTP rollout. Fourteen vendors submitted a proposal; however, NBN Co suspended the process on 1 April 2011, as the prices were unacceptably high. The first FTTP customers were connected in July 2010.
The Gillard government was elected at the 2010 Australian federal election. As a minority government priority was given to regional and rural areas, areas from which supporting cross-bench MPs were elected. An increase in the peak speed to one gigabit per second was announced in response to Google Fiber developments in the USA. After the election Opposition Leader Tony Abbott appointed Malcolm Turnbull as Shadow Minister for Communications and Broadband, stating that he believed the NBN to be a white elephant and that Turnbull had "the technical expertise and business experience to entirely demolish the government on this issue".AAP, (14 September 2010), Turnbull back to 'demolish' NBN, Sydney Morning Herald. Retrieved 29 July 2010
NBN Co's business plan was released on , including forecasts and network design incorporating these priorities. Tasmania was selected as the first state for a three-stage trial FTTP rollout. Stage one was announced in July 2009. The first customers were connected a year later. Stages two and three were announced on 21 October 2009 and 1 March 2010, respectively.
Under the 2010 NBN Co corporate plan, it was estimated that the NBN construction would require A$27.5 billion in government equity and raise an estimated A$13.4 billion in debt funding without government support; a total funding requirement of A$40.9 billion up to FY2021. Financial forecasts for NBN Co assuming a 7% internal rate of return (IRR) expect the government and debt equity will be fully repaid including accrued interest by FY2040.
Redesign Originally, NBN Co planned for a centralised model with only 14 points of interconnect (PoIs); however, that was overruled by the Federal Government on the advice from the Australian Competition & Consumer Commission (ACCC). The ACCC considered the plan to be "mission creep" and would have given NBN Co a monopoly over backhaul; however, NBN Co said centralised model would have allowed smaller RSPs to connect without going through a wholesale aggregator. ACCC recommended 121 PoIs after public consultation.
Internode criticised the "insane" number of POIs and after its pricing announcement warned it might have to charge more in regional areas because of the increased costs. In response Turnbull said the "government can't deliver on a crucial promise" of "national uniform pricing"; however, Minister for Communications, Stephen Conroy said that they "guaranteed uniform wholesale pricing" not retail pricing.
Internode (in 2010) warned that increasing the number of POIs was likely to lead to consolidation in the ISP industry. Following this warning the industry consolidated, resulting in four major RSPs (Telstra, Optus, TPG Telecom and Vocus Communications) who accounted for the majority of the market share.
2011 The Parliament passed the National Broadband Network Companies Act 2011 and a related bill on . The RFT of April 2010 was suspended process on , as the prices were unacceptably high.
NBN Co contracted with Ericsson on to design, build and operate the network with options to extend the contract for up to 10 years at a total cost of $1.1 billion. Construction commenced in 2011, with the first five locations announced as the regional and rural communities surrounding Geraldton, Toowoomba, Tamworth, Ballarat and Darwin.
NBN Co entered into an agreement worth up to $380 million with Silcar on . The agreement covered the construction of the NBN in Queensland, New South Wales and the ACT by Silcar, a company joint-owned by Siemens and Thiess. The agreement includes the option of a two-year extension with an additional value of $740 million.
NBN Co signed an agreement with Telstra on estimated to be worth $9 billion post-tax net present value, building upon the signing of a financial heads of agreement a year beforehand. Telstra was not required to separate retail and wholesale operations, instead agreeing to disconnect its Internet customers from the copper and hybrid fibre-coaxial networks in areas where FTTP has been installed and agreed to lease dark fibre, exchange space and ducts to NBN Co. Telstra would not be able to market their mobile network as an alternative to the NBN for a number of years.
NBN Co signed an agreement with Optus on estimated to be worth $800 million post-tax net present value over its hybrid fibre-coaxial network.
Following low take-up rates in Tasmania, the government adopted an opt-out model in which users are assumed to want the service unless they explicitly opt-out. Fourteen second-release sites comprising 54,000 premises in all states and territories were announced on with construction commencing in August.
Telstra allowed NBN Co to use its exchanges and ducts in the second release sites before agreement with Telstra was finalised.
Interim satellite service NBN Co launched interim satellite services on , providing up to six megabits per second. Due to the limited satellite capacity, these services were given to customers who did not have access to alternative "metro comparable" services, similar to the Federal Government's Australian Broadband Guarantee (ABG) program which ended on . The criteria for alternative "metro comparable" services were minimum data speeds of at least 512 kilobits per second, a 3 GB per month data allowance and a total price to the end customer of no more than $2,500 over three years. To provide these services NBN Co bought managed satellite services and satellite capacity from Optus for and additional satellite capacity from IPstarIPStar Australia Pty Ltd is the Australian subsidiary of Thaicom, registered with the Australian Securities & Investments Commission from 9 December 2003 as an Australian Private Company. for $100 million.
Five areas comprising around 14,000 premises were chosen as the "first mainland sites", each representing rollout challenges the NBN expected to face during an Australia-wide rollout. The first services went live on 19 April 2011.
2012 Attorney-General Nicola Roxon blocked Huawei from seeking a supply contract for the National Broadband Network, on the advice of the Australian Security Intelligence Organisation. The Australian government feared Huawei would provide backdoor access for Chinese cyber espionage.
Significant attacks were made by the Liberal/National Coalition opposition leading up to the 2013 election. These focused on the estimated cost and timeline for implementation. The build cost had been a key point of debate. Turnbull and Abbott stated that they would take an "agnostic" approach.IT Pro, (29 June 2012), We will not cancel the NBN: Turnbull, Sydney Morning Herald. Retrieved 29 July 2017 They argued that the demand for such a service was not significant, and thus that the estimated cost was too high and the timeline for implementation was too long.
2013