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Vodafone Criticises NBN for Expensive Network Expansion
TPG is challenging NBN Co’s multibillion-dollar fibre rollout in Canberra, arguing that the government is investing in unnecessary infrastructure that could lead to higher internet costs for consumers in the long run.
TPG is challenging NBN Co’s multibillion-dollar fibre rollout in Canberra, arguing that the government is investing in unnecessary infrastructure that could lead to higher internet costs for consumers in the long run.
Australia’s third-largest telco says it does not make sense for taxpayers to fund a new fibre network when high-speed internet is already being delivered through its Vision Network. This network was recently sold to Vocus for $5.25 billion. According to TPG, the Vision Network is capable of providing gigabit speeds in Canberra, and building NBN fibre in the same area amounts to a misuse of public funds.
The dispute focuses on the high cost of laying fibre in Canberra, estimated at around $6,600 per household. This is mainly due to ageing infrastructure and challenging terrain. NBN Co has pointed to factors such as backyard power poles and difficult geology. TPG argues these costs are unjustifiable given the presence of an existing commercial network. To support its position, the company is offering a six-month free trial of its 500Mbps service to new customers on the Vision Network, followed by a $79.99 monthly charge.
This clash could influence how taxpayer money is used in future broadband rollouts. While NBN Co maintains that its expenses are driven by technical challenges, TPG warns that ongoing government investment in redundant networks will eventually result in higher costs for the public. The conflict also draws attention to broader regulatory issues. Commercial operators like TPG argue that government policies such as the Regional Broadband Scheme create unfair barriers to competition.
Source: iTnews, TelecomTV, Backcover News

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