Lack of density in Australia increases costs
In a blog posted on the NBN website their chief network engineering officer Peter Ryan explains why the cost of installing Fibre to the premises (FTTP) so prohibitively expensive. Explaining that in other global cities like Tokyo or Hong Kong where population density is much higher, telco’s are able to install FTTP at at lower cost because of the increased number of buildings per KM.
This is an undeniable reality and population density is a problem that has faced any of the other networks that have been built in Australia such as the road network, power grid, water and wastewater utilities, telephone lines and so on. It is fairly safe to say that in the ultra connected modern world we live in a fast internet connection is an important utility for people to have and necessary for many peoples job.
— FibreFTW (@FibreFTW) July 6, 2017
Comparisons to other countries
In the blog post Peter compared Australia to other countries that have rolled out FTTP that have a much higher population density but Iceland has the same density per sq/KM as Australia which is 3 people per sq/km and has rolled out FTTP to 100% of the premises of it capital city Reykjavik.
In an article we posted earlier this year Rodney Tucker, former director of the Institute for a Broadband-Enabled Society visited the 2017 Optical Fibre Communications Conference and had this to say about NBN….
NBN Co seems unwilling to admit that their claimed cost of $4405 for FTTP costs is too high by today’s international standards. Said Rodney Tucker, Melbourne Laureate Emeritus Professor at the University of Melbourne
You can read Peter Ryan’s full blog post HERE