Industry welcomes NBN spend but the Opposition has criticised the extra cost to the federal budget

The telco industry is enthusiastic about the extra rollout of higher-speed broadband, provided that it doesn’t lead to wholesale pricing increases.

The government intends to fulfil its pre-election promise of bringing the NBN to another 1.5 million homes.

The telecommunications industry has welcomed the federal government’s announcement of a $2.4bn capital injection into the National Broadband Network to allow it deliver full fibre access to another 1.5 million homes.

But it warns that the extra rollout of higher-speed broadband, which was a pre-election commitment by the Albanese government, should not lead to wholesale broadband pricing increases.

The federal Opposition, however, hit out at the government’s decision to fund the extra $2.4bn from the federal budget rather than the NBN through retained earnings and raising the funding itself from borrowing on the private market.

A Telstra spokesman said: “How the NBN is constructed, and which technology is used, is a matter for NBN and the Federal Government.

“From our perspective this is a good thing for customers for whom fibre to the premises will offer faster speeds.”

Telstra insisted that the new investment should not be added to NBN’s cost base resulting in even higher wholesale broadband prices.

Optus vice president regulatory and public affairs Andrew Sheridan.

Optus vice president regulatory and public affairs Andrew Sheridan said his company supported the government’s announcement as it would “deliver improved infrastructure that is critical for Australia’s digital future success” and ensure that Australians could access connectivity which was high quality and stable.

TPG Telecom general manager, external affairs James Rickards said the company, which is the second largest retailer on the NBN, welcomed continued investment in the network.

But he said the rollout of higher-speed broadband to another 1.5 million Australians should not come “at the expense of consumer affordability”.

“Taxpayers should not be on the end of a double whammy of paying for these upgrades while also enduring unreasonable price increases as proposed by the NBN previously,” he said.

“With cost-of-living pressures continuing to hurt many Australians, NBN Co must make it a priority to support affordable internet access for low-speed users.

“The requirement for TPG Telecom and other key industry players to adjust its pricing to address NBN cost increases, underlines the need for greater certainty and the establishment of a sustainable and affordable NBN pricing model.”

Aussie Broadband managing director Phillip Britt.

Aussie Broadband managing director Phillip Britt said more full-fibre internet for Australians would “only be a good thing”.

“Australians will increasingly need faster internet in the years to come – beyond the NBN 50 and NBN 100 speeds that most Australians currently enjoy – and having access to full-fibre internet is the most sensible, scalable way of meeting those future needs for all.”

A spokesman for Vocus said the full fibre rollout to an extra 1.5m premises was welcomed as it would ensure more Australians were able to access high-speed broadband.

But he said that the industry was now watching decisions to be made on the future pricing structure of access to the NBN.

“Affordability is as important as accessibility in ensuring that Australians make the most of high-speed broadband,” the spokesman said.

“The industry looks forward to further discussions with government, NBN, and the ACCC on establishing a sustainable pricing model that works for consumers, NBN, and retail service providers.”

Opposition communications spokeswoman Sarah Henderson.

The Opposition’s communications spokeswoman, Senator Sarah Henderson, said the announcement showed the federal government was adopting the Coalition’s ultra-fast NBN rollout plans.

But by announcing it would make a $2.4bn equity investment in the NBN, the government had “irresponsibly hit taxpayers with an unnecessary multibillion-dollar burden”.

She said the Coalition’s plan to upgrade the NBN had included a $4.5bn investment in 2020 which was financed through the NBN accessing private-sector debt at low interest over the long term and did not require any additional investment by the government.

Senator Henderson said the NBN’s debt owed to the Commonwealth, under the former Coalition government, was reduced by more than $12bn.

“In stark contrast, the Albanese government is hitting Australian taxpayers with a $2.4bn cost to the Budget rather than requiring NBN Co to fund its further expansion with a combination of retained earnings and private sector debt,” she said.

“The Albanese government’s equity commitment is completely unnecessary and shows it does not know how to manage taxpayers’ money.”

Senator Henderson said there was “nothing new or meaningful in Labor’s policy announcement” to expand high speed broadband to another 1.5 million households which was originally made in late 2021.

“Under the Coalition, the Australian taxpayers’ financial exposure to the NBN was being steadily reduced; under Labor it is once again increasing.”

Originally published as Industry welcomes NBN spend but the Opposition has criticised the extra cost to the federal budget