Close Menu
TechCentralTechCentral

    Subscribe to the newsletter

    Get the best South African technology news and analysis delivered to your e-mail inbox every morning.

    Facebook X (Twitter) YouTube LinkedIn
    WhatsApp Facebook X (Twitter) LinkedIn YouTube
    TechCentralTechCentral
    • News
      SA telecoms industry veteran appointed to top Eskom job - Junaid Munshi

      SA telecoms industry veteran appointed to top Eskom job

      29 May 2026
      The hidden cost of social media age bans is everyone's privacy

      The hidden cost of social media age bans is everyone’s privacy

      29 May 2026
      South Africa's fraud surge runs on trust, not hacking

      South African fraud surge runs on trust, not hacking

      29 May 2026
      Yoco buys restaurant AI start-up Dyner in push beyond payments

      Yoco buys restaurant AI start-up Dyner in push beyond payments

      29 May 2026
      Anthropic tops valuation of AI pioneer OpenAI

      Anthropic tops valuation of AI pioneer OpenAI

      28 May 2026
    • World
      Watch: Bezos rocket erupts in fireball during ground test

      Watch: Bezos rocket erupts in fireball during ground test

      29 May 2026
      AI boom hands Samsung chip workers life-changing bonuses

      AI boom hands Samsung chip workers life-changing bonuses

      27 May 2026
      Luce lit: Ferrari unveils its first electric car

      Luce lit: Ferrari unveils its first electric car

      26 May 2026
      Huawei claims chip design breakthrough

      Huawei claims chip design breakthrough

      25 May 2026
      Pope urges world to hit brakes on AI - Pope Leo

      Pope urges world to hit brakes on AI

      25 May 2026
    • In-depth
      Alfa's electric rebel - Alfa Romeo Junior Elettrica Veloce

      Alfa’s electric rebel

      29 April 2026
      Africa switches on as Europe dims the lights

      Africa switches on as Europe dims the lights

      9 April 2026
      The biggest untapped EV market on Earth is hiding in plain sight

      The biggest untapped EV market on Earth is hiding in plain sight

      1 April 2026
      AI, cybersecurity power standout year for Datatec - Jens Montanana

      The R16-billion tech giant hiding in plain sight

      26 March 2026
      The last generation of coders

      The last generation of coders

      18 February 2026
    • TCS
      TCS+ | The Up&Up Group on the hidden cost of AI - Jason Harrison

      TCS+ | The Up&Up Group on the hidden cost of AI

      13 May 2026
      Michael Rossouw

      TCS+ | The retirement decision most South Africans get wrong

      6 May 2026
      TCS | The Cape Town start-up listening for TB with AI - Braden van Breda

      TCS | The Cape Town start-up listening for TB with AI

      4 May 2026

      TCS+ | ‘The ISP for ISPs’: Vox’s shift to wholesale aggregator

      20 April 2026
      TCS | Werner Lindemann on how AI is rewriting the infosec rulebook

      TCS | Werner Lindemann on how AI is rewriting the infosec rulebook

      15 April 2026
    • Opinion
      Treasury's crypto crackdown is a betrayal of Mandela's promise - Duncan McLeod

      Treasury’s crypto crackdown is a betrayal of Mandela’s promise

      22 May 2026
      South Africa is sleepwalking into another AI policy failure - Celeste Labuschagne

      South Africa is sleepwalking into another AI policy failure

      20 May 2026
      AI won't fix your culture - it will expose it - Jackie Kennedy

      AI won’t fix your culture – it will expose it

      19 May 2026
      Treasury's crypto crackdown is a betrayal of Mandela's promise - Duncan McLeod

      Free calls, dead voice and Shameel Joosub’s Spanish ghost

      22 April 2026
      The conflict of interest at the heart of PayShap's slow adoption - Cheslyn Jacobs

      The conflict of interest at the heart of PayShap’s slow adoption

      26 March 2026
    • Company Hubs
      • 1Stream
      • Africa Data Centres
      • AfriGIS
      • Altron Digital Business
      • Altron Document Solutions
      • Altron Group
      • Arctic Wolf
      • Ascent Technology
      • AvertITD
      • BBD
      • Braintree
      • CallMiner
      • CambriLearn
      • CM Telecom
      • Contactable
      • CYBER1 Solutions
      • Digicloud Africa
      • Digimune
      • Domains.co.za
      • ESET
      • Euphoria Telecom
      • HOSTAFRICA
      • Incredible Business
      • iONLINE
      • IQbusiness
      • Iris Network Systems
      • Kaspersky
      • LSD Open
      • Mitel
      • NEC XON
      • Netstar
      • Network Platforms
      • Next DLP
      • Ovations
      • Paracon
      • Paratus
      • Q-KON
      • SevenC
      • SkyWire
      • Solid8 Technologies
      • Telit Cinterion
      • Telviva
      • Tenable
      • Vertiv
      • Videri Digital
      • Vodacom Business
      • Wipro
      • Workday
      • XLink
    • Sections
      • AI and machine learning
      • Banking
      • Broadcasting and Media
      • Cloud services
      • Contact centres and CX
      • Cryptocurrencies
      • Education and skills
      • Electronics and hardware
      • Energy and sustainability
      • Enterprise software
      • Financial services
      • HealthTech
      • Information security
      • Internet and connectivity
      • Internet of Things
      • Investment
      • IT services
      • Lifestyle
      • Motoring
      • Policy and regulation
      • Public sector
      • Retail and e-commerce
      • Satellite communications
      • Science
      • SMEs and start-ups
      • Social media
      • Talent and leadership
      • Telecoms
    • Events
    • Advertise
    TechCentralTechCentral
    Home » Top » How Australia fluffed its big broadband project

    How Australia fluffed its big broadband project

    By Editor6 August 2014
    Twitter LinkedIn Facebook WhatsApp Email Telegram Copy Link
    News Alerts
    WhatsApp

    broadband-640

    Australia’s National Broadband Network (NBN) was one of former Prime Minister Kevin Rudd’s grand gestures. Sweeping to power in 2007, he quickly set to fixing that country’s problems in education, health and productivity. Although it was clear that he only ever understood technology superficially, he nevertheless saw it as the answer to all of his country’s ills. Children in schools would get laptops, the health system would be reinvented through the personally controlled electronic health record (PCEHR) and the nation would have the NBN to set it on the path of productivity levels to rival the Chinese.

    Rudd rode roughshod over any detail of these plans. He epitomised the spirit of Star Trek’s Captain Picard by uttering the command: “Make it so!” Unlike Picard, who never carried out any action before considering it from every angle, Rudd was convinced that these gestures would both immortalise him and transform society and industry at a stroke.

    As we now know, however, nothing is that simple, and the digital education revolution died a relatively quick death leaving the NBN and PCEHR struggling for survival on life support.

    The most recent audit report of the NBN, released this week, has ultimately judged the entire project as “rushed, chaotic and inadequate” and the stewards of the project, NBN Co as “not fit for purpose”.

    The summary findings and recommendations of the audit do not specifically deal with the NBN project itself, nor with the technological decisions that underpinned it. Instead, it recommends a range of measures to ensure proper oversight and the way that the public service and government should work to ensure that this happens in future. One of the key proposals is that any project over A$1bn should be subject to a cost-benefit analysis. The problem with this, however, is the same as for most of the recommendations made in this report. They sound good in principle, but are actually fairly meaningless in practice.

    Cost-benefit analyses of even small projects are dubious at best. They are often heavily biased, depending on the whether the people conducting them want to have a positive or negative outcome. This is reflected in both how one decides what benefits will flow from a project and how much value these benefits will generate. This is especially true of technology projects where the benefits are supposed.

    With the NBN, the benefits of having universal high-speed broadband were assumed to come from all of the things this technology would enable government, public services, industry and the public at large to do. Hospitals would save A$190m over 10 years. Households would save A$3 800/year by 2020. This last figure included savings of A$74/year on “communications through social engagement and social media”. Clearly, you could claim almost any benefit, especially if it comes from a reputable analyst firm like Deloitte Access Economics as this latter figure did.

    Would a cost-benefit analysis in 2008 have accurately predicted the technical landscape in 2014? Absolutely not. In 2008, nobody knew that the iPhone would change smartphone usage completely and drive universal adoption of highly powerful portable computers with 4G wireless network connectivity. Nobody would have foreseen the rapid change in how people access media, especially TV. Despite the lack of the NBN, Australia leads the world in illegal downloads of US TV shows like Game of Thrones.

    Mix into this the role of government in making technological bets that they barely understand and the establishment of a completely new company that is going to implement all of this within political, and not corporate, constraints, and you have a recipe for the disaster that unfolded.

    Should governments be involved?
    The findings of the audit are not surprising. Pretty much any analyst who has been watching the NBN disaster unfold for the past six years could have summarised the findings, or ones similar to it, without too much problem. Ultimately, however, the question remains whether governments, and especially the Australian federal government, should even be in this business at all. It is very likely that the answer is “no”, given the particular geographic and social challenges that Australia faces and its particular mix of telecommunications industries.The Conversation

    There is no disputing that Australia needs high-speed networks. Clearly, they are not going to be provided by the federal government and so it is up to industry to step in and do this for commercial reasons. After all, the ultimate business case for building something is that there are customers wanting the service and that it makes enough money to support its construction.

    • David Glance is director of innovation at the faculty of arts and director of the Centre for Software Practice at the University of Western Australia
    • This article was originally published on The Conversation
    Follow TechCentral on Google News Add TechCentral as your preferred source on Google


    David Glance Kevin Rudd National Broadband Network NBN
    WhatsApp YouTube
    Share. Facebook Twitter LinkedIn WhatsApp Telegram Email Copy Link
    Previous ArticleGov’t rejects talk of Eskom privatisation
    Next Article Vodacom’s R549 smartphone reviewed

    Related Posts

    Fastest ever real-world Internet speed smashed – 44.2Tbit/s

    22 May 2020

    What should gov’t be doing about the rise of AI?

    6 November 2017

    So, what exactly is an initial coin offering?

    28 September 2017
    Company News
    Why most workforce engagement changes nothing - Change Logic

    Why most workforce engagement changes nothing

    29 May 2026
    Arctic Wolf takes aim at South Africa's security blind spots - Jason Oehley

    Arctic Wolf takes aim at South Africa’s security blind spots

    29 May 2026
    Murang'a county expands healthcare access with Paratus and Starlink

    Murang’a county expands healthcare access with Paratus and Starlink

    29 May 2026
    Opinion
    Treasury's crypto crackdown is a betrayal of Mandela's promise - Duncan McLeod

    Treasury’s crypto crackdown is a betrayal of Mandela’s promise

    22 May 2026
    South Africa is sleepwalking into another AI policy failure - Celeste Labuschagne

    South Africa is sleepwalking into another AI policy failure

    20 May 2026
    AI won't fix your culture - it will expose it - Jackie Kennedy

    AI won’t fix your culture – it will expose it

    19 May 2026

    Subscribe to Updates

    Get the best South African technology news and analysis delivered to your e-mail inbox every morning.

    Latest Posts
    SA telecoms industry veteran appointed to top Eskom job - Junaid Munshi

    SA telecoms industry veteran appointed to top Eskom job

    29 May 2026
    The hidden cost of social media age bans is everyone's privacy

    The hidden cost of social media age bans is everyone’s privacy

    29 May 2026
    South Africa's fraud surge runs on trust, not hacking

    South African fraud surge runs on trust, not hacking

    29 May 2026
    Watch: Bezos rocket erupts in fireball during ground test

    Watch: Bezos rocket erupts in fireball during ground test

    29 May 2026
    © 2009 - 2026 NewsCentral Media
    • Cookie policy (ZA)
    • TechCentral – privacy and Popia

    Type above and press Enter to search. Press Esc to cancel.

    Manage consent

    TechCentral uses cookies to enhance its offerings. Consenting to these technologies allows us to serve you better. Not consenting or withdrawing consent may adversely affect certain features and functions of the website.

    Functional Always active
    The technical storage or access is strictly necessary for the legitimate purpose of enabling the use of a specific service explicitly requested by the subscriber or user, or for the sole purpose of carrying out the transmission of a communication over an electronic communications network.
    Preferences
    The technical storage or access is necessary for the legitimate purpose of storing preferences that are not requested by the subscriber or user.
    Statistics
    The technical storage or access that is used exclusively for statistical purposes. The technical storage or access that is used exclusively for anonymous statistical purposes. Without a subpoena, voluntary compliance on the part of your Internet Service Provider, or additional records from a third party, information stored or retrieved for this purpose alone cannot usually be used to identify you.
    Marketing
    The technical storage or access is required to create user profiles to send advertising, or to track the user on a website or across several websites for similar marketing purposes.
    • Manage options
    • Manage services
    • Manage {vendor_count} vendors
    • Read more about these purposes
    View preferences
    • {title}
    • {title}
    • {title}