The National Broadband Network (NBN) is an Australian 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.^[1]

Rationales for this national telecommunications infrastructure project included replacing the existing copper cable telephony network that is approaching end of life,^[a] 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.^[3][4][5][6]

As the largest infrastructure project in Australia's history,^[7] NBN was the subject of significant political contention and has been an issue in federal elections.^[8][9] 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,^[9] but by late 2018 the estimated final cost was $51 billion.^[10]

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 A$15 billion 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 June 2016. A new satellite network would be built to reach the rest of the country.^[11]

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.

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.^[12]

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".^[13][14]

NBN Co's business plan was released on 20 December 2010, 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.

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.^[15] ACCC recommended 121 Pols after public consultation.^[16]

Internode criticised the "insane"^[17] number of POIs and after its pricing announcement warned it might have to charge more in regional areas because of the increased costs.^[18] 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.^[19]

Internode (in 2010) warned that increasing the number of POIs was likely to lead to consolidation in the ISP^[20] 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 28 March. The RFT of April 2010 was suspended process on 1 April 2011, as the prices were unacceptably high.

NBN Co contracted with Ericsson on 1 June 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.^[21]

NBN Co entered into an agreement worth up to $380 million with Silcar on 1 June. 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 23 June 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 23 June 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 8 July 2010 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 1 July, providing up to six megabits per second.^[22] 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 30 June.^[22] 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.^[23] To provide these services NBN Co bought managed satellite services and satellite capacity from Optus for $200 million and additional satellite capacity from IPstar^[24] for $100 million.^[25]

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.^[26] The Australian government feared Huawei would provide backdoor access for Chinese cyber espionage.^[27]

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.^[28] They argued that the demand for such a service was not significant,^[b] and thus that the estimated cost was too high and the timeline for implementation was too long.

2013

The Multi-Technology Mix (MTM) was selected as the approach to broadband provision by the Liberal–National coalition in the lead up to the 2013 Australian federal election.

After the 2013 election, the Abbott government announced immediate changes to the NBN: most of the NBN Co board was asked to resign; Ziggy Switkowski was appointed Chairman; and rollout was moved from FTTP to "alternative technologies" such as fibre to the node. The government limited the rollout of FTTP to those areas already in development. Later implementation of the Multi-Technological Mix (MTM) began with the promise of earlier completion and significant cost savings compared to the earlier approach. The predominant change was the adoption of a mixed copper-optical technology with fibre to the node (FTTN). Studies and a strategic review were commissioned.^[33][c]

As of 3 November 2013, construction of the network had passed 354,793 premises and 109,862 customer services were active.^[34] In areas where the FTTP network was rolled out, a similar agreement with Optus was in place.

On 12 December, the NBN Co board appointed Bill Morrow as NBN Co's new CEO, replacing Quigley. Telstra asserted its intention to retain the $11bn value it generates from the previous government's deal.

Delays occurred when work was stopped for several weeks on sites where asbestos was found in Telstra pits. Turnbull announced the MTM approach promising significant savings and earlier completion. The MTM added fibre to the node (FTTN) as the preferred technology; and kept hybrid fibre-coaxial (HFC) (previously planned to be shut down).

2014

In April 2014, The Australian newspaper judged the Tasmania rollout as shambolic and abysmal.^[35] The final MTM approach was finalised. Initial costs and timing for the Coalition NBN were $29.5 billion of public funding to construct by 2019.

In May NBN announced that it would be targeting premises that were already serviced with fibre by rival TPG.^[36]

2015

Quigley publicly attacked the NBN and the MTM, noting cost blowouts and delays that he said were the fault of changes made by the Coalition government.^{[37][38][39][40][41][42]}

As of 30 June, 1,011,973 premises were able to order services, 571,527 brown fields. 180,796 greenfields premises were able to order fixed-line services, 220,917 fixed wireless, and 38,743 interim satellite service.^[43] 485,615 users were active.^[44] As of 31 March, 64,102 premises of the 722,031 premises passed were classed as being "service class zero"—"the Service Class that applies to a Premises that is not NBN Serviceable for the purposes of the NFAS but is in the footprint of the NBN Co Fibre Network."^[45]

2016

Turnbull became Prime Minister and Mitch Fifield became the Minister for Communications.

At 30 June, NBN Co had passed 2,893,474 premises across all technologies.^[46] Company annual revenue was $421 million compared to $164 million in 2015 financial year, with approximately 1,100,000 active user at 30 June.^[44]

NBN Co found no significant demand for wired connections above 25 Mbit/s (despite public surveys indicating otherwise)^[47] and upgrading the network would not be considered until demand for high-bandwidth services was proven.^[48]

2017

A 2017 report by the Joint Standing Committee on NBN found significant technology issues and company performance. All but one of the Coalition members of the committee released a dissenting report strongly defending the NBN and NBN Co.^[49][50][51]

In 2017, Morrow wrote a public blog post arguing that the New Zealand program Ultra-Fast Broadband operated in a different policy setting, with Telecom New Zealand separated into Chorus (wholesale) and Spark (retail).^[52] On 23 October, Turnbull said, "The NBN was a calamitous train wreck of a project when we came into government in 2013," and argued that the NBN might never make a profit.^[53]

Turnbull commented on New Zealand's program "They basically ensured the incumbent telco, the Telstra equivalent, split its network operations away from its retail operations. And then that network company in effect became the NBN. The virtue of that was you actually had a business that knew what it was doing, that was up and running, that had 100 years of experience getting on with the job."

Morrow admitted that 15% of end users receive poor service through NBN and are "seriously dissatisfied".^[54] In addition, Morrow indicated that in July, prices and performance for end users were suppressed through a "price war" between RSPs.^[55][56] However, despite this comment, the Telecommunications Industry Ombudsman released its annual reporting showing a 159% increase in NBN complaints with nearly 40% of NBN customers dissatisfied.^[57]

In response to the imminent broadcast of a critical documentary, Turnbull stated that NBN was a failure, but blaming the earlier Rudd and Gillard governments.^[58][59] The documentary noted significant issues with the rollout and complaints regarding performance of the NBN.^[60] Following the Prime Minister's acknowledgment of the NBN's failure, Rudd noted that, on assuming government in 2013, Turnbull, as Minister for Communications in the Abbott government, radically changed the network's technical aspects.^[61]

The ACCC began an inquiry into the NBN in November 2017, to investigate whether regulation was needed to improve outcomes for consumers.^[62] In November 2017 NBN Co temporarily suspended the rollout of its HFC network due to performance issues,^[63] costing Telstra close to $600 million AUD of its 2018 profits.

2018

In February 2018, Turnbull was criticised for connecting The Lodge to the NBN using FTTC technology while neighbours had FTTN, and for having a 100 Mbit/s plan, when he had previously stated that most Australians would not need those speeds.^[64][65] During the South Australia state election, Jay Weatherill promised funding for an alternative network for Adelaide if re-elected.^[66]

2019

In April 2019, the ACCC released a report stating that consumers were paying more for basic internet access under the NBN than they were for ADSL plans under the same speeds. Mark Gregory of RMIT University estimated that to return the NBN to all-fibre similar to the initial plan would cost between $16 billion and $20 billion over five to ten years.^[67]

NBN Co's chief executive Stephen Rue announced in August 2019 that the $51 billion project would be completed within budget by June 2020. At the time of the announcement, the network was 85% complete.^[68]

In December 2019, Speedtest.net ranked Australia 68th globally in terms of internet speed, a decline of three places from the year before and the fourth-slowest in the OECD, while being under the global average.^[69]

2020

In February 2020, Rue announced that the network was 90% complete. He also reaffirmed his August 2019 announcement that the project would be completed within budget by June 2020.^[70]

In September 2020, the Coalition announced a $4.5 billion upgrade to the NBN, planning to bring faster internet speeds to up to 8 million people, a move seen as a backflip from the Liberals after campaigning for seven years against Labor's original NBN's plan consisting of FTTP.^[71]

Infrastructure

Point of interconnect (POI)

Networks managed by individual RSPs connect to the main NBN infrastructure through points of interconnect (POIs).^[72] There are 121 POIs across the country, housed inside Telstra-owned telephone exchanges.^[73] Not all exchanges contain POIs – data which reaches a non-POI exchange is transmitted to the closest POI through the NBN transit network. POIs provide Layer 2 network access to the backhaul networks managed by RSPs, thus they act as a "handover point" between NBN and RSP infrastructure.^[16][74]

Network termination device (NTD)

A network termination device (NTD) is a customer-side network interface device which provides multiple bridges for customers to access the NBN. There are different types of NTDs for the various technologies. All connection types but FTTN use NTDs on premises. Depending on the kind of link, NTDs typically provide two telephony and four data channels.^[75] An external power source is required, and an uninterruptible power supply (UPS) can be used to maintain connection in power outages (battery backups are available for the FTTP NTD). FTTC requires power to be provided from the premises to the kerb (distribution point).

NTDs provide user–network interface (UNI) connections for connection of in-premises devices, typically though multiple modular jacks. The NTD cannot be used as a Layer 3 router for in-premises networking.

NBN technologies

The NBN network includes a range of connection technologies for both wired communication (copper, fibre optic, and hybrid fibre-coaxial) and radio communication (satellite and fixed wireless). RSPs connect to these networks at points of interconnect (see Points of Interconnect). Access to mobile telecommunication backhauls is also sold to mobile telecommunications providers.^[76]

Detailed network design rules as required by the Special Access Undertaking agreed by NBN Co and the Australian Competition and Consumer Commission were released on 19 December 2011,^[77] with updates on 18 September 2012,^[78] 30 June 2016^[79] and 30 June 2017.^[80]

The NBN "Multi Technology Mix" (MTM) consists of the following network technologies:

• Wired:
  • Fibre to the building (FTTB) – Used for multi-dwelling units and apartment blocks. Equivalent to FTTN, with the "node" located inside the building's communications room.^[81] Also known as fibre to the basement.
  • Fibre to the curb (FTTC) – Previously called fibre to the distribution point (FTTdp). Fibre connection to a communications pit on the street, then copper to the premises. Replacing Optus HFC from 2017.^[82] Also known as fibre to the pit.
  • Fibre to the node (FTTN) – A mix of copper and fibre optic technology, providing most NBN connections. Minimum speed of 25 Mbit/s.
  • Fibre to the premises (FTTP) – Fibre optic connection using a gigabit passive optical network. Available for greenfield development.
  • Hybrid fibre-coaxial (HFC) – Uses a mix of fibre optic and CATV technology largely built on Telstra's HFC network
• Wireless:
  • Fixed wireless
  • Satellite – Sky Muster telecommunications satellites

In all technologies, voice services may be provided through Voice over IP with a suitable modem. FTTN and FTTP connections support direct connection of an analog telephone.

Fibre to the curb (FTTC)

Previously known as fibre to the distribution point (FTTdp).^[83]

Customers access the FTTC network through copper connections using existing phone plugs.^[d] An NBN-provided mains-powered FTTC connection device provides one Ethernet port for connection to a router.

FTTC is typically used where an optical fibre cable is already close to each home or business. It is connected to the existing copper lines via a small distribution point unit (DPU) located near the property boundary inside a pit on the street. Each DPU can service up to four connections. The DPU is powered through an NBN-provided mains-powered FTTC connection device (a type of NTD) in each connected premises.^[84][85]

Fibre to the node (FTTN)

Existing copper connections are maintained with existing plugs being used.^[d] The end-user accesses the network using a VDSL2 modem, typically purchased from an RSP.

The FTTN network consists of optical fibre from the exchange to a node and a run of copper from the node to the existing distribution area (DA) pillars. A copper pair then runs to each premises. Each node can serve up to 384 homes.^{[citation needed]}

Fibre to the premises (FTTP)

Fibre-to-the-premises (FTTP) connects customers using Ethernet over a gigabit passive optical network (GPON) from the POI to the premises, giving a peak speed of one gigabit per second.^[86][87] Initially the preferred technological solution, it is an option for greenfield development with limited use for new or replacement connections.

In customer premises, the NTD provides user-network interface connections through registered jack sockets for voice (UNI-V, RJ11) and modular jacks for data (UNI-D, RJ45). Voice services can be provided through either UNI-V (which provides for support for emulated Plain Old Telephone Services or POTS),^{[clarification needed]} or UNI-D jack (through Voice over IP through data jacks). UNI-V services are also VoIP - the UNI-V port the user interface to a VoIP ATA inside the NTD, which avoids the need for the RSP or user to provide their own VoIP hardware. Configuration of the UNI-V ATA is managed by the RSP via NBN systems.

Data networking in the premises requires a router and/or wireless access point.

Network structureedit

A "drop fibre" fibre-optic cable runs from the premises to a "local network" which links a number of premises to a splitter in a fibre distribution hub.^[88] A "distribution fibre"^[89] cable connects the splitter in the distribution hub to a fibre access node (FAN), which is connected to a POI.^[88] Only the fibre access nodes and the equipment on premises require a power supply.^[90][91]

The FTTP network is divided into a number of geographical modules.^[92] A fibre distribution area includes up to 576 premises linked through a fibre distribution hub. A fibre serving area module comprises 16 fibre distribution areas, which services up to approximately 9,200 premises.^[92] A fibre serving area comprises 12 fibre serving area modules connected to a fibre access node, which services up to 110,400 premises. NBN Co planned to build or lease approximately 980 fibre serving areas, servicing up to 37,632,000 premises.^[92] Although this figure will continue to change over team as greenfields areas served by FTTP are created, and formerly FTTN and FTTC areas are converted to FTTP.

Hybrid fibre-coaxial (HFC)edit

Hybrid fibre-coaxial is a legacy technology purchased by NBN Co from Telstra^[93] and Optus. The Telstra HFC network is being maintained – it was found that the Optus HFC network was uneconomic to bring up to an acceptable standard, with these connections now to be provided by FTTC.^[94]

HFC connections use a DOCSIS cable modem as their NTD. The upgrade path for Telstra HFC-connected premises is DOCSIS 3.1.

Fixed wirelessedit

2,600 transmission towers connected by microwave and optical fibre to exchanges will use TD-LTE 4G mobile broadband technology to cover around 500,000 premises in rural areas. The premises in the fixed wireless area were to be fitted with a roof-mounted antenna allowing a connection to a wireless base station. NBN Co provides a modem with four UNI-D ports. Telephone connections are by VOIP. Where a copper connection is available users requiring connections during electrical power outages are encouraged to keep that.

Network structureedit

A 4G LTE fixed wireless network^[95] was to link premises to a base station in turn linked to a POI via a backhaul.^[96][97] During 2023 and 2024 this network is evolving to using 5G point-to-point radio links for increased service bandwidth.

The 2.3 GHz and 3.4 GHz spectrums^[98] were to be used to deliver these fixed wireless services covering approximately 4 per cent of the non-fibre population.^[95] Unlike the mobile networks, only premises can connect to NBN's fixed wireless network.^[99]

2,600 transmission towers connected by optical fibre to exchanges will provide TD-LTE 4G mobile broadband technology to cover around 500,000 premises. The number of premises assigned to each base station was to be limited^[100] to ensure users received "good service" with adequate throughput.^[100] Users at the edge of the coverage for each base station were to receive a peak speed of 12 megabits per second. The speed increases "considerably" closer to the base station.^[101]

Satellite serviceedit

Two Sky Muster satellites^[102] provide NBN services to locations outside the reach of other technologies, including Christmas Island, Lord Howe and Norfolk Islands.

A satellite dish is installed on the premises with NBN Co providing an NTD with four UNI-D ports. Where a copper connection is available users requiring connections during electrical power outages are encouraged to keep that.

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