OECD slams broadband inequality in Australia

A new OECD report highlights how Australia’s broadband system, once ambitious, is now fuelling inequality, especially for rural and low-income communities. Paul Budde reports.

WHILE THE WORLD is surfing faster than ever, not everyone is catching the wave equally. A new Organisation for Economic Co-operation and Development (OECD) report reveals that although broadband connectivity is improving globally, the gap between urban and rural areas is not only persisting — it’s widening. For Australia, these findings offer both a warning and a call to action.

Global progress, local disparity

The OECD’s latest report, Closing Broadband Connectivity Divides for All: From Evidence to Practice, presents a sobering look at the uneven spread of digital infrastructure. It confirms that broadband speeds and availability have improved dramatically across OECD countries. Median fixed broadband speeds more than tripled between 2019 and 2024 — from 53 Mbps to 178 Mbps.

However, this overall growth masks deepening disparities. In 2019, the speed gap between urban and rural regions was 22 Mbps. By 2024, it had jumped to 58 Mbps. Fixed download speeds in metropolitan areas were, on average, 44% higher than in regions far from urban centres.

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The OECD attributes these widening gaps to the economics of network deployment, a persistent urban bias in infrastructure investment and inconsistent policy implementation across countries. Even mobile networks, which were once expected to narrow access gaps, have seen similar patterns, with rural areas lagging behind in speed, latency and service consistency.

This report is based on novel data from 61 countries, with detailed subnational analyses provided by industry sources such as Ookla, Opensignal and GSMA Intelligence.

Australia: A unique model under scrutiny

Australia’s broadband infrastructure has long drawn attention internationally due to the scale and complexity of its National Broadband Network (NBN). The OECD acknowledges this in its analysis, pointing to Australia’s use of 121 Points of Interconnect (POIs) as a unique feature. These POIs were intended to ensure nationwide access and provider competition, but in practice, they have created chokepoints and regional disparities.

The report reflects several criticisms I have made over the years, particularly regarding the inefficiencies introduced by Australia’s mixed-technology model and the resulting underperformance in regional areas. The abandonment of the original fibre-to-the-premises (FTTP) plan in favour of copper, hybrid fibre coaxial (HFC), wireless and satellite solutions left large parts of the country with second-tier infrastructure. These decisions have led to network inefficiencies that are now being exposed as fibre becomes the global benchmark.

As I have previously written, this shift away from full fibre created a system that is more expensive to maintain and upgrade, and less capable of supporting future demand. The OECD now echoes this concern by emphasising how poor infrastructure choices can deepen digital divides, even in otherwise wealthy and well-connected nations.

In terms of fibre uptake, Australia continues to trail behind its OECD peers. In 2023, only about 26% of fixed broadband subscriptions were fibre-based, compared to an OECD average of 45%. Countries such as South Korea, Spain and New Zealand now see fibre penetration rates above 80%.

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Rural Australia left further behind

The OECD report is particularly critical of the growing gap between urban and rural broadband performance — something I have repeatedly highlighted. While federal investment in regional connectivity has increased, the outcomes remain uneven. Programs such as the Better Connectivity Plan for Regional and Rural Australia, launched in 2022, represent a step in the right direction. But they are only partially addressing the core issue: the lack of reliable, high-speed infrastructure in large parts of the country.

The report underscores the importance of moving beyond access to consider quality. It’s no longer sufficient to count whether a property is technically “served” by a broadband service. What matters is the speed, latency and consistency of that connection — factors that remain highly variable across rural Australia.

Inclusion beyond infrastructure

The OECD also broadens the discussion to include digital inclusion, noting that access to infrastructure must be matched with affordability, digital skills and relevant local content. This too mirrors arguments I have long made, particularly in relation to Indigenous communities, older Australians and people in low-income households.

Connectivity is only meaningful if people can use it effectively. This requires policies that support device affordability, local training initiatives and the development of community-based support systems. Australia has made progress in these areas, but more targeted and sustained investment is needed.

An opportunity to course-correct

The OECD report does not single out Australia as failing. Rather, it places Australia in a group of countries that have built wide-reaching broadband networks but still struggle with equitable outcomes. The ongoing rollout of fibre upgrades by NBN Co offers a real opportunity to correct past policy missteps, provided these efforts are guided by a renewed commitment to regional equity.

If anything, the report validates the criticisms many of us have made for years. With broadband now a critical enabler of economic and social participation, it is vital that governments treat digital infrastructure as essential public policy — not just a commercial enterprise.

The message is clear: if we want to close the digital divide, we need to go beyond basic coverage and ensure that performance, affordability and digital literacy are core parts of the national strategy.

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Paul Budde is an Independent Australia columnist and managing director of Paul Budde Consulting, an independent telecommunications research and consultancy organisation. You can follow Paul on Twitter @PaulBudde.