NBN rollout cost continues to soar

As Communications Minister, Malcolm Turnbull abandoned plans to build a Fibre-to-the-Premises (FTTP) National Broadband Network (NBN) across most of the country.

Instead Turnbull replaced it with a multi-technology mix (MTM) that included previously retired copper cabling.

This change to MTM was marketed by Turnbull as a cost-saving measure. However, the enormous amount of rectification works has seen the price tag for the NBN nearly double from $30 billion to more than $57 billion.

While NBN Co ‘officially’ completed the NBN’s rollout in June, in line with its target date, CEO Stephen Rue told a Senate hearing that NBN Co has identified an additional 300,000 homes and businesses have yet to be connected. Rue also estimates that it will cost some $600,000 to connect the additional 300,000 premises, adding to the NBN’s cost blowout:

The 300,000 premises are now set to be connected to the broadband network from now into 2021 at a cost of $600 million.

Mr Rue is Australia’s best paid civil servant, taking home $3.1 million in the 2019-20 financial year, including a bonus of $1.2 million.

In June, an NBN Co spokesman told The New Daily the NBN was “99 per cent complete”, with approximately 100,000 premises left to work through “that were difficult to reach, heritage sites and culturally significant sites”…

RMIT associate professor in network engineering Mark Gregory told The New Daily that NBN Co has become less and less transparent.

“The information coming out of NBN Co is not something we can rely on,” Dr Gregory said.

“We’ve got problems with the HFC still, the G.Fast hasn’t been turned on…all of these things were promised for 2019.”

Sadly, Australians have been left with an overly expensive dud that costs many customers more than the old ADSL service it replaced, and often is not much faster.

Massive fail.

Unconventional Economist
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Comments

      • So it turns out Labor’s NBN v1 (fibre to the home) would have been much cheaper to rollout, by $10Bn or more, when compared with the current Liberals NBN v2 re-using rotting copper cables owned by Telstra and Murdoch.

        We would also have gained 100x faster internet for the same end user subscription prices we pay now, and NBNco would have been far more valuable.

        Another shining example of how Toadie Abbott (and his ilk) wreck our country piece by piece, by putting misaligned vested interests of their sponsor’s ahead of the common good, scoring short term political gain and inflicting long term financial pain.

        Another shining example of how Turncoat (and his ilk) are spineless, and fail to stand up for their core beliefs, or what they know is logically a better choice, because they are too scared to rock the boat even when they have power to effect positive change, they manage to ignore their internal cognitive dissonance and subjugate their freewill unto the orders of their donors.

        • Don’t make this political. Irrespective of who was in charge and what the spec the costs would have blown out. By what degree and to what spec, who knows. Either way it would have been a catastrophe for the taxpayer.

          • The fact remains Abbott wrecked NBN v1 purely for political reasons.

            In Sweden, because they have fibre to the home, internet speed of 10Gbit (!!!) is available for just AUD $64 per month
            (e.g bahnhof.se
            10000 Mbit/s för 399 kr/mån)

            In Australia, because of Abbott. we have copper to the home, internet speed of 0.1Gbit is available for $94 per month.

            Australia paying more per month for 1% of the speed of Sweden.

            Copper NBN costs more to build than fibre would have and more expensive to maintain a mixed up mashup of multiple technologies.

            NBNco is valued at way less than the original Fibre To the Home NBNco would now be worth, if it weren’t for slimy Toadie Ratbot.

            He screwed us all to “stick it up Kevin” and keep Murdoch pleased, and Turnbullshat all over a sensible national infrastructure fibre-to-the-home build out which had already begun.

            All they had to do was nothing, and we would be soooo much better off right now.

            Instead, Tony’s wrecking ball hands are cursed by every video conferencing attempt that turns into glitching blocks of jagging pixels

            I attended court via NBN recently and the video and audio was horrendously atrocious.

            I pity the people who have to suffer with that unbearable abomination, every day, for their job.

            A pox on Abbott Murdoch and Turnbull

  1. C’mon, it’s a shovel ready 2-3 year project to upgrade to FTTC. If we had done it right first time then we wouldn’t have the opportunity to spend more money to make it better (!!??!!). I’m sure the PM can produce a jazzy name with Job at the front, JobMaker, JobCreator, something while we expensively buy a stairway to higher speed internet to stimulate the economy. Just remember, if a team outperforms and saves you millions of dollars, don’t buy them Cartier watches worth only thousands to reward them, we’re not private industry here. We’re a public service enterprise, Pennywise & Poundfoolish, and we show the punters we’re efficient with our penny savings. Never mind the billions wasted in the next room, nothing to see here.

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