How Australia Bungled Its $36 Billion High-Speed Internet Rollout

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.

The problem goes beyond sluggish Netflix streams and slurred Skype calls. Businesses complain that slow speeds hobble their effectiveness and add to their costs. More broadly, Australia risks being left behind at a time when countries like China and India are looking to nurture their own start-up cultures to match the success of Silicon Valley and keep their economies on the cutting edge. The story of Australia’s costly internet bungle illustrates the hazards of mingling telecommunication infrastructure with the impatience of modern politics. The internet modernization plan has been hobbled by cost overruns, partisan maneuvering and a major technical compromise that put 19th-century technology between the country’s 21st-century digital backbone and many of its homes and businesses.