Minister Cites Security Concerns Over Foreign-Controlled Starlink in $3 Billion NBN Push

Elon Musk, chief executive officer of SpaceX and Tesla and owner of X, attends a technology conference in Paris on June 16, 2023. Gonzalo Fuentes/Reuters

Australia’s communications minister has backed the injection of $3 billion (US$2.47 billion) towards finishing the 15-year-old National Broadband Network (NBN), saying it could help insulate against risks posed by foreign services like Elon Musk’s Starlink.

Since its launch in Australia in 2021, the Starlink satellite internet service has expanded rapidly across the country—eclipsing the NBN’s own satellite service.

A 2024 report (pdf) by the Australian Competition and Consumer Commission (ACCC) indicated that Starlink had an Australian customer base of over 200,000 as of March 2024.

The ACCC said the growth was facilitated by consumers’ transition from legacy DSL (digital subscriber line) services, which had low speed and reliability in regional and remote areas, to satellite services that deliver higher performance.

While Starlink has received overwhelmingly positive feedback from users, a regional telecommunications review (pdf) in December 2024 pointed out that the service could pose data security and sovereign risks as it is owned and controlled by a foreign company.

Starlink is based in the United States, a close defence ally to Australia.

“We know that Australians choose [internet services]–because this is a competitive market when it comes to satellite areas–they have been choosing Starlink because they have not had reliable connections through copper,” she told ABC Radio.

Minister Confident in Government’s NBN Plan

At the same time, the communications minister was confident that the Labor-born NBN could compete with Starlink with the funding boost.

Prime Minister Anthony Albanese announced the funding on Jan. 13 to upgrade and add 622,000 new fibre connections around Australia, with over half allocated to regional and rural areas.

Rowland said the regional telecommunications inquiry indicated that fibre continues to be the standard for internet services, and was recognised for its capability, speed, and long-term reliability.

“When we conceived the NBN to ensure that this was the technology that we invested in because it lasts some 50 years,” she said.

“It is impervious compared to other forms of technology. It is impervious compared to, for example, copper.

“When it comes to natural disasters, it is far more resilient. It also means that having that infrastructure present, changing the electronics or the software is one that is capable of being done seamlessly, and it is recognised around the world that fibre is the standard.”

The minister also said the government would continue to invest in NBN to provide reliable and affordable broadband services to Australians, noting that many people could not afford the higher price of other technologies.

“The objective here is to ensure that Australians have that opportunity of access to the best-quality infrastructure,” she said.

Australian Minister for Communications Michelle Rowland during Question Time in the House of Representatives at Parliament House in Canberra, Australia, on March 27, 2023. AAP Image/Mick Tsikas

PM Says Laws Could be Invoked Against Foreign Influence

Meanwhile, Albanese has indirectly warned the world’s richest man not to interfere in Australia’s federal election due this year.

It has been reported that the tech billionaire spent over US$250 million to support Trump’s campaign, and played a role in the latter’s victory.

Musk has also expressed support for conservative and right-wing political parties in the UK and Germany.

During a recent interview, the prime minister was asked about his attitude toward Musk’s involvement in the world’s politics.

While Albanese did not discuss the billionaire’s actions, he said Australia could deal with foreign interference.

“We have foreign interference laws in this country, and Australian elections are a matter for Australians,” he told The Age.

“I have no intention of being a ... commentator on what people overseas want to engage in. People will make their own judgments and have their own views about that.”