Connecting gaps in the bush

Federal Communications Minister Malcolm Turnbull plans to save money using a multi-technology mix and lower connection speeds - essentially combining wireless technology with optic fibre connections to local nodes or junction points in the metropolitan area.

Labor's metropolitan plan would have seen optic fibre installed into each premises, resulting in higher installation costs and faster connection speeds.

The plan for the NBN in the bush was essentially the same for both parties, however, some towns would receive fibre connections and other rural and remote consumers would be connected through wireless towers and satellites.

A cost benefit analysis into the NBN, commissioned by the Abbott government, found Mr Turnbull's cut-price scheme would generate an $18 million economic benefit compared with just a $2m boost from Labor's more generous plan.

The saving, relative to Labor's plan, comes from metro areas, according to the government's independant panel of experts headed by Dr Michael Vertigan.

However, the planned NBN rollout in the bush would incur "a net cost of $6b relative to the unsubsidised rollout", the Vertigan panel said.

"This largely reflects the net costs of delivering higher speeds to rural and remote areas via fixed wireless and satellite."

The Vertigan panel said the wireless and satellite connections were "a last choice technology (but with) an important role to play in rural and remote Australia where no other options are available".

Mr Turnbull described rural and remote as "most expensive" customers to service, but said a fair policy outcome dictated the NBN be subsidised for the bush.

"It's clear if you're going to have any sort of equity in terms of access to telecommunications in rural and regional Australia, there will have to be some form of subsidy," he said.

NSW Farmers telecommunications spokesman Anthony Gibson said it was only fair the government subsidised the NBN for rural areas to ensure a level playing field for rural businesses.

"Our policy has always been to call for metropolitan equivalents... so whatever the government can do to meet that, we applaud," Mr Gibson said.