Understanding the History of the National Broadband Network

The National Broadband Network (NBN) has a rich and complex history that spans over a decade. The project began in 2009, with the Australian government announcing plans to build a high-speed broadband network to provide fast and reliable internet access to all Australians.

The NBN was initially designed to be a fibre-optic network, with the goal of connecting 93% of Australian premises to fibre by 2020. However, the project has faced numerous delays and setbacks over the years, including changes in government and technical issues.

One of the key milestones in the NBN's history was the appointment of Mike Quigley as the NBN's first CEO in 2009. Quigley played a crucial role in shaping the NBN's early years and overseeing the development of the fibre network.

The NBN's rollout has been a gradual process, with the network being built in stages across different regions of Australia.

The NBN was originally planned 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.

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The Liberal/National Coalition opposition led by Turnbull and Abbott made significant attacks on the estimated cost and timeline for implementation, arguing that the demand for the service was not significant and that the estimated cost was too high. They took an "agnostic" approach, stating that they would not be bound by the original plan.

In 2009, an implementation study was commissioned, and NBN Co issued a request for tender (RFT) for the major FTTP rollout. Fourteen vendors submitted a proposal, but the process was suspended in 2011 due to unacceptably high prices.

Here are the key milestones in the NBN's history:

The NBN's construction was estimated to require A$27.5 billion in government equity and raise an estimated A$13.4 billion in debt funding without government support, with a total funding requirement of A$40.9 billion up to FY2021.

In 2009, the Rudd government announced a plan to build a new national broadband network combining fibre to the premises, fixed wireless, and satellite technologies.

The estimated cost of the project rose to $43 billion, later revised to $37.4 billion, with a federal government investment of $30.4 billion and private investment for the remainder.

NBN Co was established on 9 April 2009, with Mike Quigley appointed as the chief executive officer on 25 July.

A trial deployment was chosen for Tasmania, based on the Tasmanian Government's submission to the request for proposal.

The project aimed to provide broadband access to 93% of the Australian population at 100 Mbit/s, with those outside the network footprint to be provided access through fixed wireless and geosynchronous telecommunications satellite.

A return on investment of 7.1% was expected on revenue of $23.1 billion by 2021, with dividends to be paid after completion in 2021 to the federal government.

The National Broadband Network (NBN) has a complex and fascinating history. The original plan was to deliver fibre to the node (FTTN) and reach 98% of premises in Australia by June 2016, with a new satellite network for the rest.

The NBN was first proposed in 2008, with a request for proposals to build a nationwide fibre to the node or fibre to the premises network. However, the proposals were ultimately deemed unsuitable due to the GFC and a lack of business cases to support a 5-year rollout to 98% of Australia.

The government would supply $4.7bn of funding and tweak any laws or regulations to suit the winning proposal. However, the proposals were ultimately deemed unsuitable, and the project was put on hold.

In 2010, the NBN Co commissioned an implementation study and released a business plan, which included forecasts and network design. Tasmania was selected as the first state for a three-stage trial FTTP rollout, with the first customers connected in July 2010.

The NBN Co's business plan estimated that the NBN construction would require $27.5 billion in government equity and raise an estimated $13.4 billion in debt funding without government support, totaling $40.9 billion up to FY2021.

The NBN rollout has been plagued with issues, including cost blowouts, technical problems, and discrimination against regional Australian businesses. The original budget for the NBN was $43 billion, but this has now blown out to over $50 billion.

Here are some key technologies used in the NBN:

The Point of Interconnect (POI) played a crucial role in the NBN's infrastructure. There are 121 POIs across the country, housed inside Telstra-owned telephone exchanges.

Not all exchanges contain POIs, which means data reaching a non-POI exchange is transmitted to the closest POI through the NBN transit network.

POIs act as a "handover point" between NBN and RSP infrastructure, providing Layer 2 network access to the backhaul networks managed by RSPs.

The redesign of the NBN was a significant turning point in its history. Originally, NBN Co planned for a centralised model with only 14 points of interconnect (PoIs). However, the Federal Government overruled this plan on the advice of the Australian Competition & Consumer Commission (ACCC).

The ACCC considered the centralised model to be "mission creep" and would have given NBN Co a monopoly over backhaul. The ACCC recommended 121 PoIs after public consultation, which was a major departure from the original plan.

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Internode criticised the "insane" number of PoIs and warned that it might have to charge more in regional areas due to the increased costs. The increased number of PoIs ultimately led to consolidation in the ISP industry, resulting in four major RSPs (Telstra, Optus, TPG Telecom, and Vocus Communications) accounting for the majority of the market share.

NBN Co entered into an agreement worth up to $380 million with Silcar to construct the NBN in Queensland, New South Wales, and the ACT.

The NBN network is a complex system, but it's built on a range of connection technologies. These include copper, fibre optic, and hybrid fibre-coaxial for wired communication, as well as satellite and fixed wireless for radio communication.

The NBN "Multi Technology Mix" (MTM) is a key part of the network, and it consists of several different technologies. These include FTTN (Fibre to the Node), FTTP (Fibre to the Premises), HFC (Hybrid Fibre Coaxial), Fixed Wireless, and Satellite.

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Each of these technologies has its own strengths and weaknesses. For example, FTTN relies on copper connections to reach homes and businesses, while FTTP uses fibre optic cables all the way to the premises.

Voice services can be provided through Voice over IP (VOIP) with a suitable modem, regardless of the underlying technology. This means that users can make voice calls over the internet, even if they're not using a traditional phone line.

Here are some of the key technologies used in the NBN, along with their corresponding speeds:

The NBN Co uses a mix of these technologies to provide services to different parts of the country. For example, Fixed Wireless is used to cover around 500,000 premises in rural areas, while FTTP is used in areas where fibre optic cables are already in place.

In some areas, users may have the option to upgrade their connection technology through the Technology Choice Program. This program allows users to switch from one technology to another, such as from FTTN to FTTP or from Satellite to Fixed Wireless.

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The NBN uses a variety of deployment methods to connect homes and businesses to the internet. The NBN Co has chosen a mix of technologies to achieve this, including Fibre to the Premises (FTTP).

FTTP is a method that brings fibre-optic cables directly to the premises, providing the fastest speeds. This method is used in some areas, but not all.

Fibre to the Node (FTTN) is another method used by the NBN, which brings fibre-optic cables to a node in the street. From there, the signal is transmitted to the premises using existing copper cables.

Hybrid Fibre Coaxial (HFC) is a method that uses a combination of fibre-optic and coaxial cables to deliver the internet. This method is used in some areas, particularly where HFC networks already exist.

Fixed Wireless is a method that uses radio waves to connect homes and businesses to the internet. This method is used in areas where fibre-optic cables cannot be laid.

Satellite is the final method used by the NBN, which uses satellites in space to connect homes and businesses to the internet. This method is used in areas where other methods are not possible.

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The NBN Alternative Technologies have been a key part of the network's development. The NBN uses a mix of technologies to deliver broadband services, including Fibre to the Premises (FTTP), Fibre to the Node (FTTN), Hybrid Fibre Coaxial (HFC), Fixed Wireless and Satellite.

The NBN Co has implemented a "Multi Technology Mix" (MTM) that combines these technologies to provide widespread coverage. This approach has allowed the NBN to reach a large number of premises across Australia.

One of the benefits of the MTM is that voice services can be provided through Voice over IP with a suitable modem, regardless of the underlying technology. This means that users can enjoy reliable and high-quality voice services, even on slower connection technologies.

FTTN, for example, relies on existing copper infrastructure and can support direct connection of an analog telephone. This makes it a viable option for many areas, especially where fibre connections are not yet available.

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The Technology Choice Program allows users to upgrade from certain technologies to more advanced ones, such as switching from FTTN to FTTP. However, this program had limited take-up as of 2017, with only 30 upgrades occurring at an average cost of A$7,395.

Here are the upgrade options available under the Technology Choice Program:

The Technology Choice Program allowed users to upgrade their connection to FTTP, with options to switch from various technologies like FTTB, FTTN, fixed wireless, and satellite. This program had limited take-up as of 23 March 2017, with 221 applications received.

The program allowed individual premises to switch from any FTTx technology to FTTP, and areas could switch from FTTB to FTTP, FTTN to FTTP, fixed wireless to FTTP, and more. This flexibility was an effort to improve internet access for users.

Some areas could also switch from satellite to fixed wireless, or from satellite to FTTP, FTTN, or FTTB. This showed the NBN's willingness to adapt and improve internet access for remote or underserved areas.

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As of 23 March 2017, 113 premises proceeded to obtain a quote, and 30 upgraded their connection at an average cost of A$7,395. This highlights the cost and effort involved in upgrading internet connections.

Here's a summary of the upgrade options available through the Technology Choice Program:

Telecommunications companies like Optus, iiNet, and Vodafone expressed support for the NBN project, with Optus and Vodafone predicting it would transform the competitive landscape.

The Australian Internet Industry Association also backed the project, saying optical fibre solutions are crucial for the internet's evolution.

Internode's managing director Simon Hackett was glad the NBN was going ahead, while Vodafone-Hutchison CEO Nigel Dews echoed similar sentiments.

However, not all telecommunications companies shared the same enthusiasm, with AAPT, PIPE Networks, and Exetel opposing the NBN.

AAPT's chief executive Paul A. Broad argued the NBN would stifle competition, while PIPE Networks' founder Bevan Slattery deemed it economically irresponsible.

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Exetel's chief executive John Linton dismissed the NBN as a political stunt.

On the other hand, tech giants like Microsoft, Google, and Intel were supportive of the NBN, with Google's head of engineering Alan Noble calling it the greatest enabler of innovation.

A survey conducted by the Swinburne University of Technology found that 74.5% of respondents believed the NBN was a good idea, with stronger support among younger people and internet users.

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Telecommunications stakeholders had strong opinions about the NBN. Optus, iiNet, Internode, and Vodafone expressed support for the project. The Australian Internet Industry Association said optical fibre solutions are "a critical part in the evolution of the internet".

Internode's managing director Simon Hackett was "glad [the NBN is] going to go ahead". Vodafone-Hutchison CEO Nigel Dews said the NBN will "transform the competitive landscape". AAPT, however, expressed opposition, with chief executive Paul A. Broad saying the NBN will "stifle competition".

PIPE Networks founder Bevan Slattery called the NBN "economically irresponsible". Exetel chief executive John Linton described it as a "political stunt". On the other hand, Microsoft, Google, and Intel expressed support for the NBN.

The political responses to the NBN proposal were varied and intense. The Howard government initially dismissed the idea, calling it unnecessary and suggesting that upgrading the existing copper networks would be sufficient.

The Coalition later described the NBN as a "dangerous delusion" and advocated for a cost-benefit analysis. They claimed the NBN was a "white elephant on a massive scale" and proposed a plan focused on addressing underserved areas.

National Party Senator Barnaby Joyce surprisingly expressed support for the NBN, saying it would deliver a strategic infrastructure outcome and be vital for areas where the market had failed. He even compared it to a proposal from their think tank.

Independent MPs Rob Oakeshott, Tony Windsor, Bob Katter, and Andrew Wilkie all expressed support for the NBN. Katter called it "a great thing for this country", while Windsor said it was "too good an opportunity to miss".

Family First Party leader Steve Fielding also backed the NBN, saying it would bring Australia up to speed. The Greens agreed, calling the NBN "a key piece of 21st century infrastructure".

The Economist Intelligence Unit (EIU) criticized the NBN's huge cost to the public sector when analyzing various countries' broadband plans.

The NBN Performance and Coverage has been a complex and evolving story over the years.

Some areas of Australia were considered "brownfield" and already had an existing service, while many others were new "greenfield" areas that required fibre connections at a cost to the developer and homeowner.

The NBN Corporate Plan 2011–2013 estimated that around 13 million premises would be covered by the NBN, with 12 million using fibre (FTTP).

However, this plan was abandoned by the incoming Liberal government in 2013.

Premises are considered "passed" when all design, construction, commissioning and quality assurance activities have been completed for the local network and distribution network.

Certain premises classed as "service class zero" that require extra internal construction, such as apartments, town houses, shopping arcades and industrial complexes, may not be able to order services, even if their premises have been passed.

NBN Customer Uptake was a major concern for the network's rollout. The issue was largely due to NBN Co's definition of "premises passed" being different from the industry standard.

NBN Co's corporate plan defined "premises passed" as places where NBN services could be ordered and purchased, which led to accusations of "creative accounting". This definition was not in line with the industry standard, which was more focused on physical infrastructure.

The ACCC identified a significant issue with broadband speeds for connectable premises, but no aggregate data was available to summarize the speeds. This lack of data made it difficult for end-users to make informed decisions about their internet services.

The ACCC's concerns were echoed by reports and audits commissioned by the Abbott government in 2013, which highlighted issues with the NBN's rollout and customer uptake.

In 2018, around 29% of fixed-line connections were still on the 12/1 speed tier, while 37% of connections were on the 50/20 speed tier. This suggests that many users were still on slower speed tiers, which may have been due to various factors such as location or availability of faster options.

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The NBN rollout has been plagued with a number of issues that have severely diminished the potential of the network. One major issue is the cost blowouts, with the original budget of $43 billion now exceeding $50 billion.

The technical problems with the NBN have been a significant concern, with many of them linked to the changing of the Federal government during the rollout. This led to a change in the primary fibre-to-premises model to a multi-technology-mix model that included obsolete materials like copper.

The use of copper in the network has reduced the speed and reliability of the network. This is a major problem, especially for businesses that rely on fast and reliable internet.

Only certain suburbs are eligible for upgrades to faster speeds, leaving regional Australian businesses at a disadvantage. This is because upgrading from the inferior fibre-to-the-node (FTTN) connections to the faster fibre to the premises (FTTP) is up to the NBN.

The Broadband Blueprint was created, which proudly stated that 90% of Australians could already access broadband with speeds between 2 and 8 Mbps. It also discussed the government's view of fibre, which was deemed too expensive.

The blueprint led to the creation of Australia Connected in June 2007, aiming to bring widespread, faster internet to rural Australia with a $1bn funding package. This was a joint venture between Optus and Elders, known as OPEL.

Prior to this, the Department of Communications, Information Technology and the Arts was responsible for broadband and internet access issues, but they were split off, leaving the new Department of Broadband, Communications and the Digital Economy to focus on the Internet and other communications.

The new department had a minister directly responsible for broadband for the first time, and they axed the OPEL plan due to its failure to meet the required service coverage.

In April 2008, the government launched a request for proposals to build a nationwide fibre to the node or fibre to the premises network, with a $4.7bn funding package and requirements of 12 Mbps minimum, five year rollout, and uniform pricing across the nation.

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The proposals were judged by a panel of experts, but unfortunately, it was a flop, with none of the proposals having a business case that supported a 5 year rollout to 98% of Australia.

Here are some key points about the NBN plans and blueprints:

The Broadband Blueprint was proud of Australia's broadband situation at the time, but a group of nine telcos, including AAPT, Internode, and Optus, reported that Australian access to broadband was sub-par.

The NBN Business Model is quite straightforward. The NBN is a wholesale-only network, meaning internet service providers (ISPs) purchase access from NBN Co and on-sell it to their customers.

This model allows customers to order an NBN Plan from their chosen ISP, with speeds ranging from 12Mbps all the way up to 10,000Mbps now with the Network Enhanced Enterprise Ethernet Service.

The NBN Co doesn't directly sell internet services to customers, it's the ISPs that handle that. Customers can choose from a variety of plans offered by their ISP, each with its own speed and pricing.

As a result, customers have a range of options when it comes to selecting an NBN Plan that suits their needs.