Do-nothing Malcolm NBN shortcuts come home to roost

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Via The Australian:

Customer anger over poor service has forced the Turnbull government to halt its broadband rollout to more than 250,000 households, fuelling growing concerns over the use of pay-TV cables to deliver high-speed internet.

The temporary delay means the NBN is certain to miss its revenue goals for this year and will struggle to meet its customer connection target by the time of the next election, turning the broadband rollout into a growing political dispute.

At issue is the use of hybrid fibre coaxial cable, or HFC, to offer broadband over the lines built in the 1990s to deliver the Optus Vision and Foxtel pay-TV networks. Malcolm Turnbull was a leading advocate for the use of existing HFC connections, upgraded over time, to deliver the NBN to millions of households more quickly than laying new ­optical fibre to every home.

NBN Co chief executive Bill Morrow yesterday put an immediate stop to new services being sold over the HFC footprint, conceding that the suspension was necessary to ensure homes could receive a reliable, quality service over the cable. The decision will see 250,000 homes that were set to receive their NBN connection via HFC put on hold for the next six to nine months.

Hoocoodanode that changing tech mid-stride would deliver whack outcomes?

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.