The short version
Key points
- The Government planned to introduce legislation to keep NBN Co in public ownership.
- The proposed law would force a parliamentary debate about the network’s future and any potential sale.
- The NBN had 8.5 million customers at the time of the report.
- NBN Co’s revenue increased to $5.5 billion, but it still recorded a $1.4 billion net loss.
- The Coalition criticised NBN price increases and the Government’s approach to higher-speed plans.
A proposed legal safeguard for NBN Co
The Age reported that the Federal Government planned to introduce a law to keep the National Broadband Network in public ownership. The proposal was expected to be taken to the Labor Caucus before being put to Federal Parliament in October 2024.
The legislation was intended to provide assurance to NBN customers that the network would not be privatised, while also challenging the Coalition to clarify whether it would consider selling NBN Co in the future. The proposal would not simply settle the political debate, but would establish a formal parliamentary process around any future change to the network’s ownership.
Why ownership remains politically contentious
The NBN was funded by taxpayers, with the project costing about $51 billion over more than a decade according to the report. Its ownership has therefore remained a significant political issue, particularly as the network continues to be upgraded and expanded.
The transcript notes that Labor went into the previous election with a commitment to keep NBN Co in public ownership. Communications Minister Michelle Rowland also wrote to NBN Co chair Kate McKenzie in July 2022, outlining the Government’s expectations. These included retaining NBN Co in public ownership for the foreseeable future, expanding full fibre to more homes and businesses, and ensuring the network supported customers and productivity.
The debate over price and speed
The Coalition’s Communications spokesman, David Coleman, blamed the Government for allowing NBN prices to increase. This sets up a broader political dispute about broadband affordability and the cost of living.
The transcript also raises an issue involving wholesale capacity and retail broadband plans. Internet providers may purchase higher-speed or higher-capacity wholesale plans to support network usage, even when some customers cannot receive the advertised maximum speed because of the technology used for the final connection. For example, a customer on a fibre-to-the-node connection may still rely on copper for part of the route.
The result can be confusing for customers. A provider may need to purchase additional capacity across its network, while an individual customer remains limited by the physical connection available at their premises. The transcript argues that this can contribute to customers paying more without receiving a corresponding improvement in their available speed.
NBN Co’s financial position
NBN Co’s revenue was reported to have increased by 4.4 percent to $5.5 billion. However, the company still recorded a net loss of $1.4 billion, compared with a $1.1 billion loss the previous year.
The NBN is still undergoing major upgrades, which are costly. The transcript suggests that financial performance could improve once the upgrade program is completed and the network moves into a period with lower upgrade costs and ongoing maintenance requirements. This remains a future expectation rather than a confirmed outcome.
The original network rollout also remains part of the political debate. The transcript attributes the higher project cost partly to the decision to use a multi-technology mix rather than proceeding directly to fibre for more premises.
TechManPat’s conclusion
I think keeping NBN Co in public hands is a good sign. In my view, the network is critical communications infrastructure, and public ownership gives governments more ability to oversee upgrades, maintenance and long-term access. The proposed law was not yet the final outcome at the time of this report, but I support the move to make any future privatisation more difficult and subject to parliamentary scrutiny.
This knowledge-centre summary is based on the linked TechManPat video and reflects the information available when it was published. Check current pricing, availability and policies before acting.
