Possible high cost for NBN usage
Households may face costs of up to $3000
Users face a hefty cost in distributing the fast Internet speeds promised by the National Broadband Network around the house. Households may face costs of up to $3000 to take full advantage of the capabilities of super-fast Internet. Prospects for the $34-billion government project remains optimistic.
If Labor gains re-election and the NBN project is built, the government will provide fibre optic cable connections to about 93 percent of all households in the next eight years.
In spite the fact that the fibre will be connected to their homes, home owners will still have to shell out hundreds or thousands of dollars to configure the system so they can take full advantage of the technology and use many bandwidth-intensive capabilities at once.
Network installation experts say that a number of gadgets have to be hardwired to the main NBN connection with the use of ethernet cable for the best results.
Allan Aitchison, general manager of network engineering at Mimp, the Adelaide cable and wireless installer, said that homes should consider hardwiring desktop computers, games consoles and streaming media devices such as new internet-capable televisions.
In an interview with the Australian, Aitchison said "The cost of installing a wired outlet ranges from $250 to $450 an outlet depending on the style of the house... The best case for three outlet points in the house would be about $750 whereas an old bluestone house could cost around $450 an outlet."
A typical category 5 high-speed cable installation with four or five ports used to connect devices directly into the NBN could cost anywhere between $600 and $1200, said Malcolm Moore, a telecommunications and electrical engineer. However, he warned that the costs could skyrocket once technicians become aware of high demand.
"It could be a bit like the BER in a way... If technicians know that the government was going to give them lots of work, then they could bump their prices up significantly," said Moore.
If the NBN is built, it will pass more than 10 million premises. The extra cost of the project beyond its initial $43bn price tag may come to $5bn if every premise spent an average of $500 on bandwidth distribution equipment.
If elected, The Coalition vows to abandon the NBN project and substitute a modest $6.3bn network. The Coalition plan will make use of existing copper, wireless and HFC cable technologies. The proposal aims to provide Internet speeds of 12 megabit per second to 97 per cent of the population.
Home owners who want to distribute access to the Coalition's less capable pipe would face similar obstacles to those on the NBN. Under the Labor plan, Internet speeds of up to a 100 megabit service or better will be provided to homes and offices connected to the NBN fibre.
With the connection to the fibre network comes the installation of a Network Termination Unit (NTU) that will be used as the single point of entry for users to connect to the Internet. The NTU will act like a modem. It will come with four ethernet ports and two analog jacks for connection to internet-enabled devices and landline phones.
Users will be able to hook directly into the NTU for instant broadband access. However, wireless connections or a maze of cables are needed for further distribution of the super-fast speeds promised by NBN around the home.
Mike Quigley, NBN's chief executive, said that home owners may decide whether or not to hardwire their homes. However, he adds that such improvements are not a prerequisite for getting the speed increases.
"NBN is providing people with a free connection to the network inside their home... There is no compulsion to do anything else. But of course people can enhance their service if they like by talking to their service provider," Mr. Quigley said.
The NBN connection cost $75 a month. The plan includes unlimited local and national calls.