More than one million Australian households will ditch NBN for a 5G connection, Telstra says

MORE than one million Australian households are likely to ditch the trouble-plagued NBN and opt for a 5G connection instead.

MORE THAN one million more households will choose 5G mobile broadband over a National Broadband Network connection after it arrives next year, according to Telstra chief executive Andy Penn, in the latest blow to the $49 billion project.

The 5G mobile phone network, which will be rolled out to major cities and some regional areas in 2019, could deliver download speeds up to 20 times faster than the fastest NBN connection in addition to reduced lag.

But Mr Penn told News Corp 5G would not “be the answer for everyone” wanting faster internet connections, and the telco was also investigating new ways to make customers’ NBN experience smoother.

Andy Penn, the CEO of Telstra, says a significant number of Australians have already chosen to use only mobile broadband connections at home.

Telstra has been among the international companies agitating for the next-generation mobile phone networks at Mobile World Congress in Barcelona this week, and Mr Penn said 5G’s arrival next year would see more Australians abandon fixed broadband and opt for mobile-only connections at home.

“In another million homes in Australia, this could legitimately be a viable alternative,” he told News Corp.

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“What 5G will do, it will enhance the performance of mobile technology further.

“It’s not an answer for everybody, it won’t completely replace fixed (broadband) by any stretch, but incrementally it will mean that mobile becomes a viable option for a high proportion of the population.”

A 5G stand at the Mobile World Congress, the world's biggest mobile fair, in Barcelona.

Mr Penn said a significant number of Australians had already chosen to use only mobile broadband connections at home, many due to rented accommodation or convenience, and 5G’s top download speeds of up to 20 gigabits per second and lower latency would convince more people to look past a fixed NBN connection.

The 5G network was not designed to replace the NBN, however, he said, and fixed networks would provide a more cost-effective way to download significant amounts of data.

Mr Penn said fixed and mobile networks were increasingly looking like one another, however, and “from a customer’s perspective, I see a world where the networks look very similar”.

But in addition to introducing a 5G network next year, Mr Penn said Telstra was investigating ways to improve NBN connections within the home using wi-fi extenders and mesh network devices to better broadcast internet connectivity through houses.

“It’s not just about the NBN speeds that are available to customers but actually how that experience is delivered within the home can have a significant impact on customer experience,” Mr Penn said.

“The home gateway you use, the way the wi-fi is set up, the mesh (equipment) that you use, has to be supporting the devices you have on it.”

Complaints about NBN services soared 160 per cent last year, according to the Telecommunications Industry Ombudsman, but NBN Co chief executive Bill Morrow said some disappointment with the network could be due to poor in-home broadband equipment or wiring.

Australia could be the first country in the world to get a substantial 5G network next year, after Telstra revealed it planned to spend $5 billion to June 2019 to fast-track the technology.

Rival Optus has also completed 5G trials and is expected to roll out the technology next year, with a “showcase” planned for this year’s Commonwealth Games on the Gold Coast.

Jennifer Dudley-Nicholson travelled to Barcelona as a guest of Samsung.

Originally published as More than one million Australian households will ditch NBN for a 5G connection, Telstra says