NBN targets slashed

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Our Malcolm is on the job at the NBN. From BS:

Communications Minister Malcolm Turnbull has released an “interim statement of expectations” to NBN Co, setting new targets and asking it to keep rolling out fibre to the premises until a review is complete.

“The interim statement instructs NBN Co to continue to roll out the network as rapidly and cost-effectively as possible throughout this process…(This) will see the NBN Co meet its contractual obligations by continuing to roll out fibre to the premises while the company conducts the strategic review of the project.”

Forecasts for the number of premises passed by fibre cable have been revised down.

The figure is expected to be 729,000 by June 30, 2014, 1.74 million by June 20, 2015, and 3.115 million by June 30, 2016.

It was originally expected in the 2010 NBN corporate plan that 5.65 million premises would be passed by mid-2016.

Australia has 8.7 million occupied and unoccupied premisses so a little over one third are going to get fibre to the home. The others will take it for the team!

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About the author
David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.