Fibre Boost: Canberra Expands Modern Economy Backbone

Australian Treasury

In the early days of electricity, households judged its value by how brightly it lit their homes. Few imagined it would reshape manufacturing, healthcare, communications and entertainment. Broadband is following the same path. What began as a faster way to browse the web has become core economic infrastructure. The fibre upgrade now underway across Canberra will help ensure our city remains productive, connected, innovative and resilient in the decades ahead.

Construction has begun on a major upgrade that will enable around 97,000 Canberra homes and businesses currently connected by fibre‑to‑the‑node to transition to full fibre connections. Across 85 suburbs, workers will haul more than 2,500 kilometres of fibre and utilise over 1,200 poles. By the end of the decade, nearly all premises in the ACT currently served by fibre‑to‑the‑node will be eligible for full fibre.

To understand why this matters, it helps to know the difference between fibre‑to‑the‑node and fibre‑to‑the‑premises. Fibre‑to‑the‑node runs optical fibre to a street cabinet, then relies on ageing copper lines to reach individual homes. Copper was designed for voice calls and basic data services. Its performance weakens over distance and degrades over time. Fibre‑to‑the‑premises replaces that copper link with optical fibre all the way to the building. The result is faster speeds, greater reliability, higher capacity and stronger long‑term performance.

Full fibre connections can deliver gigabit speeds and beyond. They also allow upload speeds to keep pace with download speeds. This supports households uploading large files, students participating in interactive classes, and businesses running cloud‑based operations. Fibre also has lower latency, meaning faster response times, smoother video calls, clearer telehealth consultations and more responsive digital services.

The economic benefits of fibre are well established. Research from the OECD finds that faster broadband supports productivity growth by enabling firms to adopt digital tools, automate processes, reach new markets and scale their operations. Studies show that access to fibre increases business formation, supports employment in digital industries, strengthens regional economies and raises property values. Countries such as South Korea and Japan, which invested early in nationwide fibre networks, became global leaders in digital services, advanced manufacturing, and high‑technology industries - illustrating how reliable, high‑capacity broadband supports innovation and economic dynamism.

The reason is simple. Fibre expands what economists call the production possibility frontier. When bandwidth constraints ease, new business models become viable. A small Canberra firm can serve clients globally. A medical specialist can consult patients remotely. A student can attend a virtual lecture hosted overseas. Infrastructure shapes opportunity, mobility, entrepreneurship and growth.

Reliability is equally important. Fibre is more durable than copper, less susceptible to weather and electrical interference, and cheaper to maintain over time. This leads to fewer dropouts, fewer service disruptions, fewer repair visits and more consistent performance. For businesses operating on tight deadlines, reliability supports productivity, planning and service delivery.

The benefits extend beyond economics. Fibre supports better healthcare through telehealth services, allowing patients to consult specialists from their homes and communities. It strengthens education by enabling remote learning, real‑time collaboration, digital research and access to global expertise. It improves inclusion by ensuring that people can participate fully in modern society, civic life, cultural exchange and economic opportunity.

The pandemic underscored how essential connectivity has become. Overnight, homes became offices, classrooms, clinics and studios. Those with reliable broadband adapted quickly, continued working, continued learning and continued connecting. Investing in fibre helps ensure Canberra remains ready for future technological change, economic shifts and new opportunities.

From a policy perspective, fibre also reflects a principle economists have long understood. Infrastructure investment delivers long‑term returns through higher productivity, stronger businesses, expanded employment and broader economic growth. Like roads, railways and electricity grids, broadband enables private sector activity, technological innovation, knowledge exchange and economic dynamism.

Canberra is particularly well placed to benefit. Our city has a highly skilled workforce, a strong research sector, a growing technology industry and an entrepreneurial culture. Reliable, high‑capacity broadband complements these strengths. It supports entrepreneurs, researchers, small businesses and creative professionals. It enables flexible work arrangements that improve productivity, wellbeing, family life and community engagement. It strengthens Canberra's position as a modern, connected and forward‑looking city.

The fibre upgrade now underway will take time to complete. Residents will see construction activity in streets, verges, neighbourhoods and business districts. The long‑term payoff will include faster connections, stronger reliability, greater capacity and broader opportunity. This investment will help ensure that Canberra has the digital infrastructure required for a modern, productive and innovative economy.

Infrastructure decisions shape economic outcomes for decades. Just as earlier generations invested in electricity, roads and telecommunications, today's investments in fibre will underpin future growth, innovation, productivity and opportunity. In the digital age, fibre is the backbone of economic dynamism, social connection, technological progress and shared prosperity.

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