MOUNT Isa will be one of the first cities to benefit from the new National Broadband Network, but almost 200 towns across the state could be left behind when the superfast service rolls out.
In announcing plans for his $43 billion network last week, Prime Minister Kevin Rudd promised a fibre-optic cable network for "every person and business in Australia, no matter where they are located".
The Federal Government boasted it would deliver internet speeds 100 times faster than currently available.
But it admitted that towns with fewer than 1000 residents would be excluded from that commitment. Instead, they would get access to a mix of wireless and satellite technology, 10 times slower than the premium service.
Federal Communications Minister Senator Stephen Conroy said some smaller towns would benefit from the superfast connection if they were close to major highways.
Queensland has 195 towns with less than 1000 people - 31 of these fall just short of the mark, including Coral Cove, Dayboro, Gin Gin and Woorabinda.
National Party Senate Leader Barnaby Joyce said he feared much of rural Queensland would miss out.
"My worry is that they will spend all the money on urban areas and then run out ... they will spend it where they will get a commercial return," he said yesterday. "Regional and rural areas will be left out - again."
Social demographer Bernard Salt says the network will spark a boom and higher property prices for larger towns in the state's southeast.
Many "tree-changers" drove up to an hour to work in Brisbane and surrounding areas, he said, but the NBN would end the commute for many and make the semi-rural lifestyle more attractive to stressed city-dwellers.
"Areas like Gatton, Esk and Springfield will thrive," he said.
Telecommunications expert Geoff Johnson, vice-president and research director for IT advisory company Gartner in Australia, believes fibre-optic technology is the best option available.
"There is no next technology after fibre ... it will be the best option for 20 to 50 years," he said.
"Satellite is good for really remote areas, but there can be terrible delays and it makes everything slow. It is OK if there is nothing else."
But he baulked at the $43 billion cost, saying the Government had budgeted on $5000 per home although
Gartner analysts estimated that fibre-to-the-home installation could be done for $2000 each.
Premier Anna Bligh wants the network's head office to be in Queensland, and yesterday promised to "do everything in my power to make that happen".
Senator Conroy did not rule out a Brisbane base for the new company established to build and operate the network.
"It is definitely up for consideration over the coming weeks and months," he said.
Senator Conroy said the network rollout would be conducted simultaneously across the country over the next eight years, starting with "backhaul links" to boost connections at blackspots including Mount Isa.
Ms Bligh said she had written to the Prime Minister to stress that Queensland should be a priority, as it was best-placed to lead Australia out of the global economic crisis.
"Bringing the headquarters of the NBN to Brisbane will create thousands of jobs. It will also show that the Federal Government understands the opportunity for decentralisation that this technology offers," Ms Bligh said yesterday.
"Optus is in Sydney, Telstra in Melbourne, why not NBN Corp in Brisbane?"
Ms Bligh said the information and communication technologies (ICT) industry generated $23 billion in Queensland every year.
"Of the 1350 people estimated to be directly working in the industry nationally, 620 are permanently employed in Queensland," she said.
"Queensland has the most ICT graduates per capita of any Australian state, and produces two-thirds of Australia's ICT doctorates.
"That means the expertise is already here."