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
      So, who exactly will buy Apple's R50 000 iPhone Duo

      Why Apple can’t tell you who its R50 000 iPhone is for

      11 September 2026
      'There are no adults in the room': the AI safety exodus

      ‘There are no adults in the room’: the AI safety exodus

      11 September 2026
      US in move to counter Huawei in Africa

      US in move to counter Huawei in Africa

      11 September 2026
      SAPS wants to deploy AI bodycams with facial recognition

      SAPS wants to deploy AI bodycams with facial recognition

      10 September 2026
      Lesaka's first profit comes as its merchant business goes backwards - Lincoln Mali

      Lesaka’s first profit comes as its merchant business goes backwards

      10 September 2026
    • World
      'This is not circular': Jensen Huang defends $3.5-billion MediaTek deal

      ‘This is not circular’: Jensen Huang defends $3.5-billion MediaTek deal

      2 September 2026
      AI-generated music banned from Australian charts

      AI-generated music banned from Australian charts

      26 August 2026
      Traders brace for a R4.5-trillion swing in Nvidia's value

      Traders brace for a R4.5-trillion swing in Nvidia’s value

      25 August 2026
      Russia building its own Starlink - and faster than expected - Vadym Skibitskyi

      Russia building its own Starlink – and faster than expected

      11 August 2026
      Meta AI will now tell parents if their teen is in crisis

      Meta AI will now tell parents if their teen is in crisis

      17 July 2026
    • In-depth
      Google DeepMind CEO Demis Hassabis. Image: John Sears

      The plan to stop AI from breaking the world

      16 July 2026
      The internet has a Strait of Hormuz problem

      The internet has a Strait of Hormuz problem

      15 July 2026
      AI boom sparks rally, frenzy and fear

      AI boom sparks rally, frenzy and fear

      11 June 2026
      Every plug-in hybrid on sale in South Africa, ranked by price - Lamborghini Temerario

      Every plug-in hybrid on sale in South Africa, ranked by price

      7 June 2026
      What Wi-Fi 8 will mean for wireless networks

      What Wi-Fi 8 will mean for wireless networks

      1 June 2026
    • TCS
      Meet the CIO | Shoprite's Chris Shortt on what a supermarket becomes

      Meet the CIO | Shoprite’s Chris Shortt on what a supermarket becomes

      9 September 2026
      Rubicon's EV charging network is profitable - and growing fast - Watts & Wheels

      Rubicon’s EV charging network is profitable – and growing fast

      8 September 2026
      Winstone Jordaan on building a national EV charging network

      Winstone Jordaan on building a national EV charging network

      2 September 2026
      Watts & Wheels S1E8: 'Tesla lands in Africa, just not here'

      Watts & Wheels S1E8: ‘Tesla lands in Africa, just not here’

      24 August 2026
      TCS | Herotel CEO Van Zyl Botha on beating Starlink to South Africa

      TCS | Herotel CEO Van Zyl Botha on beating Starlink to South Africa

      14 August 2026
    • Opinion
      The fragile joint in the Capitec machine - Pambos Soteriades

      The R197-billion market the banks can’t reach

      25 August 2026
      South African tech's compounding debt problem - Jannie van Zyl

      Management consulting as we know it is over

      21 August 2026
      South African tech's compounding debt problem - Jannie van Zyl

      The most dangerous customer is the quiet one

      10 August 2026
      South African tech's compounding debt problem - Jannie van Zyl

      South African tech’s compounding debt problem

      29 July 2026
      The fragile joint in the Capitec machine - Pambos Soteriades

      Best network, worst vibes: the puzzle of SA telecoms

      20 July 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.com
      • 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
      • Vox
      • 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
      • Policy and regulation
      • Public sector
      • Retail and e-commerce
      • Satellite communications
      • Science
      • SMEs and start-ups
      • Social media
      • Talent and leadership
      • Telecoms
      • Watts & Wheels
    • 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
    Get breaking news on 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
    Add TechCentral as a preferred source on GoogleFollow TechCentral on Google NewsGet breaking news on WhatsApp


    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
    Nitda, NDPC and Galaxy Backbone back CyFrica 2026

    Nitda, NDPC and Galaxy Backbone back CyFrica 2026

    11 September 2026
    Can an online school produce a scientist? CambriLearn has an independent answer

    Can an online school produce a scientist? CambriLearn has an independent answer

    9 September 2026
    The ASUS ExpertCenter Pro ET900N from Altron Arrow

    A petaflop on a desk – rethinking AI infrastructure for South Africa

    9 September 2026
    Opinion
    The fragile joint in the Capitec machine - Pambos Soteriades

    The R197-billion market the banks can’t reach

    25 August 2026
    South African tech's compounding debt problem - Jannie van Zyl

    Management consulting as we know it is over

    21 August 2026
    South African tech's compounding debt problem - Jannie van Zyl

    The most dangerous customer is the quiet one

    10 August 2026

    Subscribe to Updates

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

    Latest Posts
    So, who exactly will buy Apple's R50 000 iPhone Duo

    Why Apple can’t tell you who its R50 000 iPhone is for

    11 September 2026
    Nitda, NDPC and Galaxy Backbone back CyFrica 2026

    Nitda, NDPC and Galaxy Backbone back CyFrica 2026

    11 September 2026
    'There are no adults in the room': the AI safety exodus

    ‘There are no adults in the room’: the AI safety exodus

    11 September 2026
    US in move to counter Huawei in Africa

    US in move to counter Huawei in Africa

    11 September 2026
    © 2009 - 2026 NewsCentral Media
    Built and maintained by Chronon
    • 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}