5G vs NBN

The first time I ever experienced the internet was through a dial-up modem in my teenage years. Prior to that it had all been disk swaps and bulletin board services. The internet then was tiny in comparison to what is available today. Nobody would have attempted to stream a movie, let alone in 4k. Displaying a graphics rich website, like the homepage of my ISP at the time, was enough to make a cup of tea. A lot has changed since then and thankfully the internet speed has vastly improved.

In the past few years we’ve seen the introduction of 5G to Australia. It’s rollout to most areas is progressing and it’s expected that it will be available to 85% of Australia by the end of 2022. 

With speeds up to 1Gbps, 5G provides an opportunity for Australians to replace their fixed line internet connections with more portable connections that are easy to configure and faster than existing services. A user would expect to download a DVD quality movie in about 13 minutes using their standard broadband connection (50Mbps). The same could be downloaded in just 4 seconds on 5G performing in ideal conditions.

Australia’s other option, the National Broadband Network (NBN) can also provide, in ideal conditions, up to 1Gbps. However NBN plans at this speed can be considerably more expensive and it’s unlikely that most buildings in Australia will have access to the Fibre to the Premises connection required for these speeds.

Australia’s NBN service will have cost over $51 billion by the time it’s completed. Along the way there have been multiple budget and timeline blowouts as well as a fundamental change in delivery of a the service causing the speed to be limited. Initially the NBN rollout was to connect directly from the premises to the NBN using fibre (this is called Fibre to the Premises). However during rollout, this proved to be both expensive and challenging, and the decision was made to opt for availability of service rather than speed of service. The copper wires that were used to connect phone lines (and yes, that old dial-up modem) are now being used to carry the signal to the exchange.

When first considered, the NBN was the latest in fibre to the property technology, but now – 15 years later – it’s a relic of the past with 5G being faster, cheaper and more reliable than NBN.

In saying that, the NBN is currently accessible by over 12 million Australian homes across the country (both urban and rural). 76% of connections running NBN have speeds of over 50Mbps and a promising quality of service. Australia is huge, and getting internet connectivity to rural areas can be a challenge in itself. There are also other advantages to the NBN.

Fixed line networks, like the NBN, have a much larger capacity than wireless networks like 5G and are less prone to congestion. Telstra has limited the number of 5G connections in certain areas to maintain quality of service on it’s network because of this, meaning there is a level of scarcity affecting those that can connect to 5G.

While 5G and NBN are both capable of hitting very high speeds, as fast as 1Gbps, it won’t be a constant experience across Australan cities. At the moment, it’s only available to the 2 million or so households who are on track to have their Fibre to the Node connection upgraded to Fibre to the Premises, which is planned for later 2022 and 2023. As mentioned, Fibre to the Node still relies on the old copper connections we used for phone lines, and a house would need to be within 400 metres of the local exchange to have any chance of achieving these speeds. Fibre to the Premises connections can achieve up to 1Gbps speeds in ideal conditions but for everyone else the top speed available remains at around 100Mbps. More likely, during peak times, most users report apeeds of around 50Mbps.

5G can achieve speeds considerably faster than this and can consistently reach 1Gbps and with a well managed connection can service a growing population without significant degradation. 

When talking about 5G, installation is another factor to consider. Around 80% of complaints to the Telecommunications Ombudsmen regarding internet connectivity is to do with services delivered by the NBN.

Connecting to the NBN is expected to take up to 10 working days from the order, and in most cases it normally requires a visit from a service technician to install hardware and check the lines for connectivity. This often requires repeat visits and has been known to drag out for months.

5G doesn’t use the existing copper or fibre infrastructure, the modem and plan can be purchased from most providers and it can be set up within minutes for a good home connection. Companies like Move Up Internet are providing 5G connections to multi-dwelling buildings in urban areas. They also don’t require lengthy installation processes and you can be connected within a day of moving in.

While the NBN has significant coverage over Australia it is limited in speed and uses very old infrastructure to provide the service. 5G is based on newer technologies and is growing at a significant rate to meet the needs of a mostly mobile population. It’s faster, cheaper and more reliable, and can be switched-on quickly, without hassle. It leaves my old dial-up connection in the dust.