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How Australia Bungled Its $36 Billion High-Speed Internet Rollout (nytimes.com)
Not very pleased with your internet speeds? Think about the people Down Under. Australia's "bungled" National Broadband Network (NBN) has been used as a "cautionary tale" for other countries to take note of. Despite the massive amount of money being pumped into the NBN, the New York Times reports, the internet speeds still lagged behind the US, most of western Europe, Japan and South Korea -- even Kenya. The article highlights that Australia was the first country where a national plan to cover every house or business was considered and this ambitious plan was hampered by changes in government and a slow rollout (Editor's note: the link could be paywalled; alternative source), partly because of negotiations with Telstra about the fibre installation. From the report: Australia, a wealthy nation with a widely envied quality of life, lags in one essential area of modern life: its internet speed. Eight years after the country began an unprecedented broadband modernization effort that will cost at least 49 billion Australian dollars, or $36 billion, its average internet speed lags that of the United States, most of Western Europe, Japan and South Korea. In the most recent ranking of internet speeds by Akamai, a networking company, Australia came in at an embarrassing No. 51, trailing developing economies like Thailand and Kenya. For many here, slow broadband connections are a source of frustration and an inspiration for gallows humor. One parody video ponders what would happen if an American with a passion for Instagram and streaming "Scandal" were to switch places with an Australian resigned to taking bathroom breaks as her shows buffer. The article shares this anecdote: "Hundreds of thousands of people from around the world have downloaded Hand of Fate, an action video game made by a studio in Brisbane, Defiant Development. But when Defiant worked with an audio designer in Melbourne, more than 1,000 miles away, Mr. Jaffit knew it would be quicker to send a hard drive by road than to upload the files, which could take several days."
The private market will always surpass the nationalized or state run model for all services.
Never say "always". Market solutions work well when there is competition and transparency, but when those are lacking, governments can often do better than a private monopoly or duopoly. There are many examples of this: America's privately run healthcare system is worse in both cost and outcome compared to any other developed country. Many cities in America have municipal power, water, and even Internet, and these tend to be at least as good as privately run monopolies in neighboring cities.
Whenever possible, rather than directly providing services, the government should focus on making markets more competitive and transparent. We have government owned roads and ports, but the government doesn't own the cars, trucks, and ships. Likewise for Internet, the government should provide wide conduits so any bonded company can pull fiber. Since trenching is by far the biggest cost, this will allow more companies to enter markets at greatly reduced cost.