Labor's NBN policy headlined by in-home wiring upgrades but no fibre 'quick fix'

Updated

Federal Labor has conceded there is little it can do to fix the embattled National Broadband Network if it wins the election.

Key points: Labor election policy does not propose major changes to $50b NBN rollout

In-home wiring scheme aims to improve speeds on fibre-to-the-node connections but will cost less than $125m

Government boasts both parties now support current NBN rollout

Instead, the party has vowed to upgrade in-home wiring to improve user speeds as the centrepiece of its vision for the NBN.

Labor's communications spokeswoman, Michelle Rowland, unveiled the party's election policy conceding it would not be offering a "quick fix" and saying "we must look to the future".

"This requires the honesty to acknowledge there are realities we cannot undo, whilst knowing that with the application of will and initiative we can try make the best of the NBN and position it for the future," she said.

The five-pronged policy includes:

a digital inclusion drive, aiming to increase broadband take-up

providing NBN Co with increased funding to improve internal wiring of homes with low speeds

better protecting businesses from long periods of NBN downtime

directing NBN Co to run trials of more fibre in the network

conducting an immediate review of the economics of the NBN

The Government has already given NBN Co an extension on its $19.5 billion loan, on top of about $30 billion in Government investment in the organisation.

Some have expressed doubts over whether the Government can recoup this investment and that it may need to pursue a write-down.

Australian Competition and Consumer Commission chairman Rod Sims warned this week that costs of entry-level internet plans on the NBN were higher than they were on previous technologies.

In a speech at the CommsDay conference, Ms Rowland acknowledged the NBN faced issues.

"In these proposals, we have sought to present a responsible plan to improve the NBN while being honest about the challenges," she said.

Wiring fix but no more fibre

The most expensive component of the plan is the pledge to upgrade the internal wiring of some Australians' homes.

This has been found to restrict speeds for Australians on the slower fibre-to-the-node connections which use more of the old copper telephone network.

It currently it costs consumers $150 to have this problem fixed under a standard installation, but Labor is pledging to meet this cost and claims it could benefit 750,000 households.

But Ms Rowland said the question she had been asked most was how Labor was going to deliver more fibre.

"I want to be honest and speak plainly on this point — Labor will not be offering a quick fix."

Instead, Labor would direct NBN Co to undertake trials to test the economics of new fibre installations that would be co-funded by government and NBN Co.

"These upgrade trials will focus on the fibre-to-the-node footprint, and will be used to test new methods and construction practices to reduce costs," she said.

"The number of homes will be quite modest — estimated at 20,000 or less — but sufficient to provide reliable data."

Communications Minister Mitch Fifield said the announcement showed Labor had adopted the Coalition's plan for the NBN and accused the Opposition of a "complete capitulation".

"Labor's NBN policy amounts to no more than a trial and a review," he said.

"Today, the Coalition's policy has become Labor's policy."

Three-quarters of Australian houses can now order an NBN service, and the rollout is scheduled to be completed by 2020.

Topics: government-and-politics, australia

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