Independent cost benefit analysis of broadband: Volume II – the costs and benefits of high‐speed broadband

27 Aug 2014

The Cost-Benefit Analysis confirms that there are real economic and social advantages in deploying high-speed broadband infrastructure to Australian households and businesses.

The Cost-Benefit Analysis considers the costs of different approaches to providing fast broadband in Australia. It also considers preferences and potential future demand for high-speed broadband in Australia, and estimates consumer willingness to pay for increased broadband speeds.

The report found that deploying the NBN through a multi-technology mix (MTM) – which involves a combination of fibre to the premises (FTTP), fibre to the node, hybrid-fibre coaxial, fixed wireless and satellite technologies – provides net benefits of $18 billion to the community and the economy.

MTM produces these benefits because it can be delivered quicker and at less cost, improving broadband access for Australians who really need it. The report also found that MTM is far more 'future proof' in economic terms: if future demand grows slower than expected, it avoids the high sunk costs of having deployed FTTP. MTM also provides the option of future upgrades to FTTP, once there is sufficient demand to make it worthwhile.

This Cost-Benefit Analysis of the NBN was prepared by a panel led by Dr Michael Vertigan AC.

Please note: These documents are not completely accessible due to the redaction of some content.

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