Wireless Demand and 4G Launch Undermines NBN Foundations

September 27, 2011
The launch of Telstra’s 4G LTE mobile broadband network, and the looming arrival of competing networks from Optus and Vodafone has once again underlined the shaky economics of the Gillard Government’s National Broadband Network, said the Shadow Minister for Regional Communications, Luke Hartsuyker.

“I welcome the launch of Telstra’s 4G network through Australia’s capitals and more than thirty other cities today (Tuesday), and I note Telstra’s plans to roll out 4G to an additional fifty locations by the end of the year.” Mr Hartsuyker said.  “Optus and Vodafone Hutchison are also developing 4G networks. These new mobile broadband options will add further capability to the already competitive telecommunications market and provide additional incentive for customers to move toward mobile broadband solutions.

 

“The big three mobile carriers are aggressively rolling out 4G capability, and it is inevitable that these faster networks will put pressure on NBN take-up rates. Telstra claims to have connected 1.6 to 1.7 million customers to its mobile network in the past twelve months, with 3G demand doubling every year. By comparison, NBN Co is already playing catch-up, with the most recent figures available showing a total of only 622 active premises on the NBN.

“The significant expenditure by the big three telcos on rolling out 4G technology is further evidence of the Gillard Government’s folly in persisting with the taxpayer-funded monopoly NBN and gambling on a single technology. The NBN’s own corporate plan anticipates that more than 50% of NBN customers will sign up to the basic 12Mbps plan. Senator Conroy will have to pull a large rabbit out of a hat to entice 4G customers enjoying download speeds up to 40Mbps to switch to a slower service while sacrificing mobility. The facts simply don’t add up.

“With the 4G roll-out gathering momentum, the forecast that only 16.3% of households will be wireless-only by 2025 fails the credibility test. Australians deserve access to high speed broadband, but in the case of the NBN, they are just paying through the nose for more Labor waste.”

< Prev		Next >