Communications Minister Malcolm Turnbull has defended the government's backdown on a promise to contribute federal funding for a high speed internet cable connection to Birdsville and nearby outback towns.
Prime Minister Tony Abbott shook hands on the deal with Diamantina Shire mayor Geoff Morton during a visit in May.
But Mr Morton has since been advised the deal is off because his area is set to receive an improved internet service next year from the first of two new satellites.
Mr Turnbull said that service would be much better, especially for video conferences.
He said a fibre optic connection would also provide an improved service to Birdsville and other nearby outback towns, but at a great cost.
"But it would do nothing for somebody on a cattle station," he told ABC radio. "It'd do nothing for people on one of the smaller towns like Yaraka or any of the other smaller communities."
Mr Turnbull said 93 per cent of Australia would be covered by fixed-line technology under the National Broadband Network and that would be achieved by 2020.
Four per cent will receive their internet by wireless and the remaining areas, mostly remote regions, by satellite.
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