Upgraded NBN could compete with Elon Musk's Starlink

The Starlink satellite service has become increasingly popular in parts of regional Australia, where internet is provided through the slower copper network instead of fibre.

But a regional telecommunications review released in December found the foreign ownership of systems such as Starlink raises questions about data security and sovereign risks.

Elon Musk's Starlink service poses a security risk in areas of unreliable internet, a report found. (AP PHOTO)

It is part of the reason it is so important for the government to expand its Australian-owned NBN, Communications Minister Michelle Rowland said.

"(Starlink) is a risk in areas where there is no credible substitute," she told ABC Radio on Tuesday.

"We want to make sure that Australians continue to have access to reliable, affordable broadband."

A $3 billion boost to complete work on the National Broadband Network will upgrade the service to about 620,000 homes and businesses, with more than half located in regional areas.

NBN Co, the commonwealth company responsible for the network, will also spend $800 million on the works expected to be completed at the end of 2030.

While Starlink will likely remain a competitor to the NBN, these expansions will make the Australian system more attractive to consumers, University of Sydney telecommunications engineering expert Wibowo Hardjawana said.

According to Dr Hardjawana, Starlink is more expensive and can be less reliable and slower than fibre network internet.

"Assuming NBN fibres reach regional areas, NBN can provide better services and compete with Starlink," he told AAP.

The coalition has criticised the Labor government for taking so long to invest in the NBN, but when asked if Australia should fund Starlink, Opposition Leader Peter Dutton said the market would decide.

"Consumers have made decisions to move to Starlink already, or to other third party providers, and many of them have moved away from NBN and in good part because this government has been asleep at the wheel when it has come to internet services," he told reporters in Brisbane.

Starlink is popular in areas with internet using the slower copper network instead of fibre. (David Crosling/AAP PHOTOS)

Analyst Paul Budde said regional areas would be damaged enormously without high-quality broadband.

"The key reason for having an NBN is the national importance," he told AAP.

"It supports our society, healthcare, education, communication ... it's critical for the economy.

"We now have a digital economy so without proper digital infrastructure, you can't run a digital economy."

An upgrade would also unlock education and health services, helping people stay in regional and rural communities, he added.

The federal government is aiming to pass laws to keep the NBN in public hands, as parliament resumes in February.

Mr Budde said privatisation of the network should not be considered as the telecommunications market was under pressure.

"All telcos are suffering," he said.

"It's the big digital companies that are making the big profits. They're all using the infrastructure, but they're not paying for it. 

"The telcos are suffering from a lack of actual funds, extra investments. That makes it even more critical for the government to consider what they are doing now."

NBN Co chief executive Ellie Sweeney said the upgrades were the "final piece of the puzzle" and would help meet the online needs of the future.