A rise in wireless subscriptions of 51 percent causes opposition to hit out at NBN

An issue has been raised as to whether the National Broadband Network (NBN), which will cost the government around $43 billion, will attract enough customers following figures shown by the federal opposition that point to an increase in the take-up of wireless broadband in Australia.

Nick Minchin, the opposition senator is now questioning whether there is a requirement for a new fixed-line broadband network following the release of figures by the Australian Bureau of Statistics (ABS) showing that in the last six month the number of subscriptions to mobile wireless broadband has risen by 51 percent.

In a recent statement Mr Minchin said “Labor wants to spend up to $43 billion building a fixed line fibre network to serve 90 per cent of the population, but has no idea what level of demand will exist for these services when and if the network is ever built.”

He went on to add “History is full of failed and costly examples of governments trying to pick technology winners. Labor’s NBN will take at least eight years to roll out and could prove to be the biggest white elephant of all.”

The market share for mobile wireless has increased from 20 percent up to 27 percent recently, whilst the fixed-line broadband market share dropped from 63 percent down to just 57 percent according to figures supplied by the ABS.

The imminent address that is to be given by Mike Quigley, the executive chairman of the NBN Co appears to have led to the latest comments made by Mr Minchin.

The address to the communications alliance will be the first major address to be made in public by Mr Quigley who will also be accompanied by Gary McLaren, a lead consultant for the NBN Co.

Source – Business Spectator