Government says it can go it alone on NBN
May 6, 2010
The Australian government has released the long awaited reported into the National Broadband Network, which the government said showed the delivery of the high-speed internet network is "achievable, and can be built on a financially viable basis with affordable prices for consumers". The report also indicated that it would be commercially logical to build the network in partnership with Telstra, however if the government retained ownership of NBN, it would receive a return on its investment regardless.
Without Telstra, the government could build the network for around $38 billion, the report said.
Minister for Broadband, Communications and the Digital Economy, Stephen Conroy said the national broadband network would transform life and business with Australia, however he declined to commit to whether Telstra would be involved in the development of the network, instead suggesting that the government was able to go it alone if need be.
"The study confirms that the NBN business model establishes that taxpayers are paid back their investment with a modest return by year 15 of the project on the basis that privatisation is completed,” Mr Conroy added.
The modest return would be around $40 billion over 15 years, from the $26 billion investment.
Other key findings in the result was that the peak investment by the government would be $26 billion by the end of year seven, of which $18.3 billion would be required over the next four years.
Meanwhile, the lower price tag than the widely touted $43 billion for the NBN, was predicated on returns coming in by those timeframes.
The report also said that entry level wholesale prices on the fibre should be set at around $30-35 per month for basic broadband 20Mbps plus voice service "to drive affordable retail prices and better value for money for consumers compared to what is available today".
The higher speed broadband service would be available for around $50 per month, the minister said.
"The study confirms that the NBN can provide consumers with faster speeds and better download limits for comparable prices to what they pay in the market today,” Mr Conroy said.
Other findings included that the fibre component of the NBN should be extended from 90% to 93% and cover the 1.3 million new premises expected to be built by 2017-18; while satellite services would be available for where fibre connection was not possible.
Telstra shares were trading up 1c at $3.14 per share by 1441 AEST.
Without Telstra, the government could build the network for around $38 billion, the report said.
Minister for Broadband, Communications and the Digital Economy, Stephen Conroy said the national broadband network would transform life and business with Australia, however he declined to commit to whether Telstra would be involved in the development of the network, instead suggesting that the government was able to go it alone if need be.
"The study confirms that the NBN business model establishes that taxpayers are paid back their investment with a modest return by year 15 of the project on the basis that privatisation is completed,” Mr Conroy added.
The modest return would be around $40 billion over 15 years, from the $26 billion investment.
Other key findings in the result was that the peak investment by the government would be $26 billion by the end of year seven, of which $18.3 billion would be required over the next four years.
Meanwhile, the lower price tag than the widely touted $43 billion for the NBN, was predicated on returns coming in by those timeframes.
The report also said that entry level wholesale prices on the fibre should be set at around $30-35 per month for basic broadband 20Mbps plus voice service "to drive affordable retail prices and better value for money for consumers compared to what is available today".
The higher speed broadband service would be available for around $50 per month, the minister said.
"The study confirms that the NBN can provide consumers with faster speeds and better download limits for comparable prices to what they pay in the market today,” Mr Conroy said.
Other findings included that the fibre component of the NBN should be extended from 90% to 93% and cover the 1.3 million new premises expected to be built by 2017-18; while satellite services would be available for where fibre connection was not possible.
Telstra shares were trading up 1c at $3.14 per share by 1441 AEST.
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