Aug 9, 2012

Despite delays and blowouts, NBN remains broadly on track

The NBN is experiencing rollout delays and cost blowouts now, but as the project develops and efficiencies kick in these will be almost immaterial by the end of the 10-year project -- assuming it survives.

Stephen Bartholomeusz

Business Spectator commentator

Given the delays and the changes to its original plan for the national broadband network, yesterday’s revised NBN Co corporate plan was always going to look significantly different to the one it released last year. Perhaps the most surprising aspect of it is that the NBN remains broadly on track.

It is behind schedule because NBN Co lost nine months between signing a definitive deal with Telstra last year and gaining Australian Competition and Consumer Commission approval for it. It also lost time because the federal government changed the scope of the rollout to include greenfields developments and the ACCC insisted on 121 points of interconnect for the network rather than NBN Co’s preferred 14.

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147 thoughts on “Despite delays and blowouts, NBN remains broadly on track

  1. floorer

    Anybody got any ideas / first hand knowledge of why it might be hard for the LNP to derail the NBN? Contract with Telstra etc? Presuming they win of course, better throw that in.

  2. Scott

    That’s a 13.8% increase in operating costs….
    Ignore the return on capital of 7.1%….its a rubbish figure, based on 30 year projections. They couldn’t even get projections right for connections a couple of years in the future so i would say this figure is rubbery at best.
    The only people who will be making money out of this thing are the vendors doing the rollout.

  3. Oscar Jones

    I’ve yet to find a businessman who doesn’t want the NBN yet to get them to go on the record is impossible.

    Critics of the NBN probably would have moaned about the laying of electric and telephone cables. Criticism of the NBN is a prime example of Tony Abbott’s inability to present any positive policies and his crazy habit of opposing every and anything.

  4. WTF

    Given that broadly speaking the aim of all Labor initiatives is to burn wast wads of other people’s money, I have to agree, it is broadly right on track.

  5. Suzanne Blake

    The cost blow out will be tens of billions, if it completes.

    Conroy FAIL, following a plan hatched by Rudd on the back of a coaster

  6. Hamis Hill

    A ten percent extension of services results in a four percent increase in costs and this is a “Blow Out”.
    We seem, in the midst of all this, to have reverted to a Medieval era of illiteracy and innumeracy.
    All learning of the part five centuries seems to be burning at the stake.
    With SB and company warming themselves in the heat. Ain’t that so Suzy?
    Not really Liberal is it. Have the real Liberals gone extinct?
    Leaving us all in Stooge World?

  7. Hugh (Charlie) McColl

    WTF, I love the way you lay vaste to Labor’s economic philosophy but I don’t get the “other people’s money” part of it. “Taxpayers'” money is paying for the NBN. Just like the Natural Heritage Trust (“burning” the Telstra sale money, a Howard era initiative), the NBN is ours and it is for us. We are the beneficiaries (well, 13,500 so far!), not some mysterious alien elite, resident who knows where. Think about the amount of money Australia will spend on Defense in the same nine years leading up to 2021. What will we have to show for it when that day comes?
    The NBN, even costing the unbelievable motza that it is, will be a fantastic renewable resource that will underpin the entire Australian economy and society. That’s nation-building isn’t it?

  8. Hamis Hill

    Don’t the Stooges realise that they lost the last election because of their Scheisegrupenfuhrer’s opposition to the NBN. No they don’t. What a sad lot of losers they are!

  9. Suzanne Blake

    @ Hugh (Charlie) McColl

    we could get a better, cheaper outcome with wireless.

    There is no way the NBN can be rollod out to the home in rural and regional Australia

  10. Hamis Hill

    @SB The NBN lost you the last election. It will lose you the next. Just keep opposing what the people want like the NDIS.

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