Need to retrofit cities for 5G mobile network arrival

The rollout of 5G mobile networks will require a “new wave of infrastructure investment”.

“5G requires higher densities of towers and cells to address higher traffic loads and enable the use of higher radio frequencies.” Picture: AFP

The rollout of 5G mobile networks across Australia will require a “new wave of infrastructure investment” over the next five years that will create cost, planning and security challenges.

The Australian Infrastructure Audit has declared cities would need to be retrofitted to accommodate the emerging technology, while more mobile towers would need to be built in rural areas.

The report also poured doubt on the NBN’s forecast to achieve an internal rate of return of 3.2 per cent, and noted there could be complications from the potential privatisation of the network when the rollout is complete.

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It found the transition to 5G could see consumers being hit with higher network costs, suggesting the big telecommunications companies were upgrading their 4G networks while also managing the evolution of 5G.

“A major contributor to this cost is the need for more physical infrastructure than 3G and 4G,” the report said. “5G requires higher densities of towers and cells to address higher traffic loads and enable the use of higher radio frequencies. This will necessitate a shift towards using smaller cells in closer proximity to one another, and the deployment of a deep-fibre network. This creates challenges in retrofitting cities and in creating sufficient densities in more remote areas.”

However, the report predicted mobile network operators, including Telstra, Optus and Vodafone’ would largely absorb the costs, as long as it was staged over the next five to seven years.

“Upgrading mobile tower sites, delivering small cells in high-density areas and moving towards nationwide rollout could be achieved within existing capital expenditure envelopes if carefully staged over the next five to seven years,” the report said.

The report declared Australia was “well positioned” to roll out the 5G technology, despite the ban on Chinese telecommunications giant Huawei from participating in the system. Telstra, Optus and ­Vodafone plan to launch their 5G networks this year.

“There is potential for 5G adoption to be stronger and faster than previous mobile generations in Australia,” it said.

The report said Australia was a “world leader” on mobile speeds but lagged comparable countries on fixed internet speeds.

“In June 2019, we ranked 57th in the world on fixed broadband speeds, well behind comparable developed nations,” the report said. The top National Broadband Network speeds were about 28th in the world for internet speeds, but ADSL networks were 166th.

At the same time, mobile handset data increased 41 per cent in the year to June last year, while wireless broadband data consumption increased 49 per cent.

“Australia will need to continue to deliver increasing amounts of data, at high speeds, to meet this demand,” the report said.

The report also sounded the alarm on whether the NBN could achieve an internal rate of return of 3.2 per cent, noting users’ apparent “unwillingness to pay more for additional services, challenges in achieving fast speeds across all technologies, and the imminent rollout of competing 5G fixed wireless and mobile networks.”

It warned there could be difficulties arising from the potential privatisation of the network.