NBN three to examine broadband cost-benefit

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From the AFR:

Speculation is mounting Communications Minister Malcolm Turnbull has settled on three experts to undertake a six-month cost-benefit analysis of the Coalition’s $20.4 billion national broadband network.

It is understood former competition commissioner Alan Fels, outspoken national broadband network critic Henry Ergas and former eBay Australia chief executive Alison Deans will form the panel, which will shortly be announced by the federal government.

The panel will be tasked with finishing a report within six months on the economic benefits of directly wiring homes with fibre optic cabling, or connecting nodes on streets with fibre and using Telstra’s copper network to deliver high-speed broadband.

A reasonable mix. Fels is solid. Ergas isn’t evidence-based enough for my tastes but a bit of Devil’s Advocacy won’t go astray in this role and some commercial nous from Deans is a good addition.

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This could be a useful exercise so long as they examine the full cost-benefit analysis for the entire economy not just the NBN itself. Is three enough to do that?

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.
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