Turnbull’s MTM NBN Will be Later, Slower and More Expensive.

There’s 2 main reasons why I’ve avoided writing about the NBN for the last couple months. For the most part it’s been because there’s really been nothing of note to report and sifting through hours of senate talks to find a nugget of new information to write about isn’t really something I’m particularly enthused about doing. Secondly as someone who’s deeply interested in technology (and makes his living out of services that could make heavy use of the NBN) the current state of the project is, frankly, infuriating and I don’t think people enjoy reading about how angry I am. Still it seems that the Liberal’s MTM NBN plan has turned from a hypothetical farce into a factual one and I’m not one to pass up an opportunity to lay down criticism where criticism is due.

Turnbull's Disinterested Face

The slogan the Liberal’s ran with during their election campaign was “Fast. Affordable, Sooner.” promising that they’d be able to deliver at least 25Mbps to every Australian by the end of 2016 with that ramping up to 50Mbps by the end of 2019. This ended up being called the Multi-Technology Mix (MTM) NBN which would now include the HFC rather than overbuilding them and would switch to FTTN technology rather than FTTP. The issues with this plan were vast and numerous (ones I’ve covered in great detail in the past) and suffice to say the technology community in Australia didn’t buy into the ideas one bit. Indeed as time as progressed the core promises of the plan have dropped off one by one with NBNCo now proceeding with the MTM solution despite a cost-benefit analysis not being completed and the speed guarantee is now gone completely. If that wasn’t enough it’s come to my attention that even though they’ve gone ahead with the solution NBNCo hasn’t been able to connect a single customer to the FTTN solution.

It seems the Liberal’s promises simply don’t stand up to reality, fancy that.

The issues they seem to be encountering with deploying their FTTN trial are what many of the more vocal critics had been harping on for a long time, primarily the power and maintenance requirements that FTTN cabinets would require. Their Epping trial has faced several months of delays because they weren’t able to source adequate power, a problem which currently doesn’t have a timeline for a solution yet. The FTTP NBN which was using Gigabit Passive Optical Network (GPON) technology does not suffer from this kind of issue at all and this was showing in the ramp up in deployment numbers that NBNCo was seeing before it stopped its FTTP rollouts. If just the trial of the MTM solution is having this many issues then it follows that the full rollout will fare no better and that puts an axe to the Liberal’s election promises.

We’re rapidly approaching the end of this year which means that the timeline the Liberals laid out is starting to look less and less feasible. Even if the trial site gets everyone on board before the end of this year that still gives only 2 years for the rest of the infrastructure to be rolled out. The FTTP NBN wasn’t even approaching those numbers so there’s no way in hell that the MTM solution would be able to accomplish that, even with their little cheat of using the HFC networks.

So there goes the idea of us getting the NBN sooner but do any of their other promises hold true?

Well the speed guarantee went away some time ago so even the Liberals admit that their solution won’t be fast so the only thing they might be able to argue is that they can do it cheaper. Unfortunately for Turnbull his assumption that Telstra would just hand over the copper free of charge something which Telstra had no interest in doing. Indeed as part of the renegotiation of the contract with Telstra NBNCo will be paying some $150 million for access to 200,000 premises worth of copper which, if extrapolated to all of Australia, would be around $5.8 billion. This does not include the cabinets or remediating any copper that can’t handle FTTN speeds which will quickly eat into any savings on the deal. That’s not going into the ongoing costs these cabinets will incur during their lifetimes which is an order of magnitude more than what a GPON network would.

I know I’m not really treading any new ground by writing all this but the MTM NBN is beyond a joke now; a failed election promise that’s done nothing to help the Liberal’s waning credibility and will only do damage to Australia’s technology sector. Even if they do get voted out come next election it’ll be years before the damage can be undone which is a royal shame as the NBN was one of the best bits of policy to come out of the tumultuous time that was Labor’s last 2 terms in office. Maybe one day I’ll be able to look back on all my rants on this topic and laugh about it but until that day comes I’ll just be yet another angry IT sector worker, forever cursing the government that took away my fibre filled dream.

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