4G and The National Broadband Network: They’re not in Competition.

Telstra was a brilliant example of why natural monopolies should never be put in the hands of private share holders. Whilst the situation has improved quite dramatically over the past decade thanks to strict regulation and enhanced competition we’re still suffering a few headaches of not jumping on the broadband bus earlier than we should have. Still though the Australian government is being no slouch when it comes to charging forward into the future with the National Broadband Network which, if fully implemented, will see Australia able to count themselves amongst the top tier of Internet enabled nations. Still with the high cost and long implementation timeline many are looking at alternatives that can provide similar benefits, and the first place they turn to is wireless.

Today the issue was brought into the spotlight again as Telstra announced their plans to do a nation wide rollout of 4G LTE (Long Term Evolution) wireless broadband services. The comparisons to the NBN flowed thick and fast, with many questioning the benefits of having both:

Telstra will significantly upgrade its mobile network to take advantage of fast 4G technology that will allow users to obtain speeds similar to home broadband connections while on the go.

The announcement comes on the back of a government-commissioned report warning uptake to its $36 billion network could be stifled by wireless technologies.

Long time readers will know I’ve touched on this issue briefly in the past after having a few long conversations with fellow IT workers over the NBN. On a pure theoretical level 4G wins out simply because you get similar speeds without having to invest in a large scale fiber network and you get the speeds wherever you have coverage. The problem is whilst the 4G specification does make provisions for such high speeds there’s a lot of caveats around being able to deliver it at that level, and they’re not all just about signal strength.

Upgrading the current 3G network to support 4G is no small task in itself, requiring all towers to be upgraded with additional transceivers, antennas and supporting infrastructure. Whilst upgrading the towers themselves won’t be too difficult the real problem comes in when people start wanting to use this new connection to its fullest potential, attempting to get NBN speeds from their wireless broadband. This at the very least requires an infrastructure upgrade on the scale of Fiber to the Node (FTTN) as the bandwidth requirements will outstrip the current infrastructure if they are used as a replacement for the NBN. Most critics looking to replace the NBN with wireless neglect this fact and in the end not upgrading the backhauls from the towers means that whilst NBN speeds would be possible they’d never be realised in practice.

Wireless is also no replacement for fixed line as it is much harder to provide a guaranteed level of service, something businesses and government entities rely on. Sure many of the limitations can be worked around with good engineering but it will still lack the scalability of a fixed fiber solution that already has implementations in the multi-gigabit range. Wireless might make sense for some low use consumer products (I’d love to get my mobile videos faster) but the fact is that if you’re relying on your Internet connection for critical business functions you’re not going to be doing them over wireless. Heck I don’t think anyone in the 4G enabled parts of the USA is even attempting to do that.

In reality the NBN and Telstra’s 4G network shouldn’t really be seen as being in competition with each other, they’re really 2 completely different products. The NBN is providing the ground level infrastructure for an Internet revolution in Australia, something that will bring extremely high speed Internet access to the masses. 4G should be seen as an evolutionary step in the mobile sector, enabling much more rich Internet services to be delivered to our handsets whilst offering some of the capability of a fixed line when you’re on the go. The sooner everyone realizes this the better as playing them off each other is just a waste of time and won’t lead to anything positive for Australia as a nation.

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  1. That’s a great example of how the actual cost of the NBN lines up with the budget. I think a lot of people get distracted by the $36 billion price tag and neglect to see that it’s not going to be spent all in one year making it look a lot bigger than it actually is. Plus this is the kind of infrastructure that lasts for decades and I’m quite confident it will reach a positive ROI in a much shorter time frame.

    But facts never got in the way of a good story now, did they? 😉

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