But NBN Co has not ruled out revisiting the speeds in the future, and will instead focus on building capacity of the fixed wireless network.

Large numbers of residents in Junortoun, Strathfieldsaye, Huntly, Epsom and other areas close to Bendigo’s urban boundary are required to connect to fixed wireless NBN, transmitted using mobile towers.

NBN initially planned to introduce speeds up to 100 mbps for fixed wireless customers in December, but that has been cancelled.

Related: NBN rollout to be finalised in Bendigo in 2018

Member for Bendigo Lisa Chesters said the cancellation was not unexpected, but was still disappointing for those on fixed wireless.

“You have residents in areas like Strathfieldsaye and Huntly that connect to fixed wireless, so these are not solely rural users that are affected,” she said.

“What this does do is exacerbates the divide between metro and regional areas in regards to internet speeds.

“In Bendigo, the problem is compounded by the fact that we have one tower connected with fibre, that is required to transmit signal to nine other towers.”

During Senate Estimates on Thursday night, Mr Morrow said the “billions and billions of dollars” required to achieve 100 mbps fixed wireless was “outrageous” for taxpayers.

Instead, NBN Co will focus on boosting capacity of the fixed wireless network after more customers than expected accessed the network.

Related: Bendigo MP receives 3250 responses to NBN survey

An NBN spokesperson said 100 mbps would be revisited in the future, but the capacity of the network was the main priority at the moment.

“As with any wireless broadband solution, capacity is not infinite and needs to be carefully monitored and managed in order to deliver a network that can provide the best customer experience,” she said.

“The intention is to provide end-users with the best utility from the available fixed wireless network capacity, to help provide a better service to all and NBN Co can better utilise the limited capacity within the fixed wireless network.

“This does not mean different products will not be offered in the future as technology and consumer needs change. We will be consulting with phone and internet providers on how to optimise the delivery of products on the fixed wireless network in a way that best reflects the usage patterns we are seeing.”

At the moment, 42 per cent of connected Australian premises are on NBN plans for 50 mbps or higher, according to NBN Co.

About 58 per cent are on plans for 25 mbps or lower.