NSW gov's $300m regional mobile program delivered less than two percent of target

A $300 million program to improve mobile connectivity in NSW delivered less than two percent of its target coverage, an audit has found.

The state’s Regional Digital Connectivity program (RDCP) was projected to build 36,000 square kilometres of improved mobile coverage by June 2023, but only delivered 700 square kilometres of coverage by the intended date.

The RDCP, which includes the $100-million Gig State program to improve regional internet connectivity, was criticised for poor management and miscalculated cost estimates.

In addition, an NSW audit found the RDCP’s “overall objectives” remain undefined, while different project business cases showed “no consistency”.

Deficiencies and delays

The RDCP began in 2019 to provide grant funding to commercial telecommunications providers for eligible mobile and internet projects.

However, according to the state’s audit office, not one of the RDCP’s projects was delivered on time, and there's no evidence for how the department monitored project progress.

All projects were delayed beyond their planned completion date while some projects were over a year beyond their target, the report found.

“Deficiencies in project and risk management have contributed to delays in the ... implementation of the program,” the report said.

Although some delays were beyond the government’s control, others could have been anticipated and managed by “more proactive risk management”, the report added.

In a revised projection, the government has said it will deliver 12,279 square kilometres of new mobile coverage by December 2024 and 60,000 square kilometres by December 2028. 

Significantly higher costs

One project highlighted by auditors was the construction of a fibre network in the Wamboin, Bywong and Sutton regions.

Despite estimating higher costs, the Department of Regional NSW went to tender with its budget of $5 million committed by the NSW government.

“This budget proved insufficient, as project costs have since increased to over $12 million, and the department had to request additional funds to complete the project," the auditor said.

“This means that the process which followed was more complex and protracted than it may have been if the department had provided this advice at an earlier stage.”