bogarde73 wrote on Aug 20
th, 2013 at 3:12pm:
The Australian Labor Party has launched a political advertisement about its National Broadband Network (NBN) which makes claims on cost, speed and rollout.
Claim 1: The cost
It's free for your home or business to connect no matter if you live in the suburbs, on a farm, or in the city.
(snip)
The claim that it is "free for your home or business to connect" is not the full story.
NBN Co provides access to its hardware free of charge. But an internet service provider may charge for connection, and most ISPs require a customer to sign a 24 month contract.
To be fair, ISPs generally charge connection fees regardless of the underlying network technology. As for the price and the contract, it is likely that these prices will decrease over time. Early adopters of technology tend to pay more. (How much did LCD TVs cost 10 years ago? How much do they cost now?)
This price claim was incomplete. The government imposes no connection charges, so this should have been stated more clearly.
Quote:Claim 2: The speed
It’s 40 times faster than the second rate network Tony Abbott wants to build, which relies on last century's copper technology.
It is true that Labor's NBN Co fibre-optic technology can deliver download speeds of 1,000 megabits.
In contrast, the Coalition says its plan will deliver download speeds of between 25 megabits and 100 megabits.
The 1,000 megabit speed offered by NBN Co is 40 times faster than the slowest speed of 25 megabits offered by the Coalition.
(snip)
The "40 times faster" claim may be true one day but is not available to residential customers now and may never be available to all customers.
Copper cannot deliver 1000 megabits per second, ever. Wireless has its own limitations caused by the need for multiple users to share the same network. For some customers both parties only offer wireless connections.
Fibre can deliver 1000Mb/s (1Gb/s) once the terminal equipment is upgraded. Indeed, fibre can handle speeds over 10Gb/s with the right equipment. 1 Gb/s may not be the speed offered now, but it will certainly be possible within the next decade with only a modest upgrade cost. The chance of 1 GB/s speeds over a 50-year-old copper wire is nil.
The main limitation of future speeds is not the fibre from the premises to the ISP itself, but the need for ISPs to throttle speeds to ration the relatively limited capacity of their trunk lines.
I think this claim was also incomplete. It would have been more accurate to highlight the current speeds more and make it clearer that the 40 (or more) increase in speed was based on future upgrades using existing equipment.
Fact Check concurs, with an "Oversimplified" rating. It's not wrong, but leaves out a few important details.
However, this kind of spin is not unusual in election campaigns, and is not worse than Hockey's apples vs oranges debt comparison that got an "Exaggerated" rating on ABC Online's Fact Check yesterday.