Fraudband

[kevin457]

Tell me Monk, how will we manage to fund a $36 bil NBN project with a slowing economy?

I was wondering how myself, then I googled NBN during recession.... to see if anyone else had wondered the same.

Then I found this.

http://news.yahoo.com/australia-pm-rudd ... 41307.html

It seems, Rudd has accused Murdoch of kicking a dog when it's down (meaning his government) because Murdoch had temerity to ask him the same question.

So how will we fund a NBN with a slowing economy and as Rudd said, in the face of what he described as being the inevitable recession we need to have, this and still might.

[Rorschach]

or a $70 billion one.

[Aussie]

or a $70 billion one.

I dunno, but it is already factored in to the forward estimates and is included in the $36B.

[IQS.RLOW]

or a $70 billion one.

I dunno, but it is already factored in to the forward estimates and is included in the $36B.

Would those forward estimates be put together by the same band of numpties that predicted the surplus this year, revised it in May to $18Bn and two months later get us $30bn in deficit?

Sounds a reliable way to turn a $36Bn project estimate into a $70-90Bn blowout

[Rorschach]

NBN costs got a link?
Are there actual budget figures or is it still ex budget?

Every single dollar spent on Labor’s National Broadband Network is borrowed money, as today’s front page article in the Australian Financial Review points out.

So when the Gillard Government claims the NBN will cost ‘only’ $37 billion to build (or that NBN Co needs funding of ‘only’ $41 billion before it becomes financially self-sufficient in 2021) it is not telling taxpayers the whole truth.

Neither figure includes the cost of interest payments on all of the funds borrowed for the NBN.

Accounting for interest payments adds $10 billion to the price tag for Labor’s NBN (assuming a borrowing cost of 5 per cent, the average Commonwealth Government ten-year bond yield).

This is before taking account of the construction delays and higher costs that have plagued the project so far.

Comparing the true overall costs of Labor’s NBN against its projected returns suggests it is simply not credible to claim it is viable in commercial terms. Yet for the past three years this is how Senator Conroy has excused keeping most of its expense off the Budget.

The updated NBN Corporate Plan due this week must set out all expenses associated with the financing of the NBN, including the cost of interest payments on Government ‘equity’. Unless it does, Senator Conroy has no right to claim this project will deliver an economic return.

After almost five years in power, the Government’s broadband policy is a catastrophe. Barely 15,000 households have connected to the NBN (with fewer than half on its much vaunted fibre) and many Australians will not receive it for a decade or more.

Meanwhile NBN Co’s own Corporate Plan states that monthly charges per customer will double over the next decade.

The Coalition’s alternative broadband policy will be financially responsible, and deliver fast broadband to all Australians more affordably and sooner.

http://www.malcolmturnbull.com.au/media ... -nbn-costs" onclick="window.open(this.href);return false;

[Rorschach]

So when will Albanese debate Turnbull?

[Jovial_Monk]

The (real) NBN will:

Summary

The full Fibre NBN:

Addresses the inaction of the Howard Government in not starting a National Broadband Network when it first became apparent in 2002 and was demand by Sol Trujillo in 2005.

Corrects the deliberate market foul-up by Howard in not Structurally Separating Telstra.

This policy resulted in the market failure where no commercial entity was prepared to invest in a new Broadband network. They'd already seen multiple infrastructure disasters: 1993 HFC Cable ($4 billion wiped out), 4 Mobile phone networks overbuilding one another and the ADSL debacle: every operator must install it's own DSLAMs in every exchange.

Has already added over $30 billion to Telstra's valuation, probably well over $60 billion when done.

Introduced "tiered pricing" that reduces Consumer Surplus, increases both wholesale and retail revenues and gives customers a great deal.
Removing the "single-price" model of ADSL line charging allows retailers to identify the Premium Users, the top 30% who contribute most of the profit, and better market to them.

The $110 ARPU will be a gold-mine for ISP's/Retailers: with no effort, they get to triple their Revenues and increase Profits considerably more.
Leverage Price Elasticity by dropping both Access and Volume Charges ~20%/year, stimulating demand and increasing profits.

The high-end consumers generate the profits and pay for the rest of us.
Providing Traffic Priorities so ISP's/Retailers can decrease their costs further and still guarantee service levels where it matters.

Provides multicast, that will allow new, higher definition or higher feature Video streaming or gaming, while allowing low-cost content providers to enter the field or sports associations (eg AFL) to live broadcast multi-view, high-quality game feeds for many games.

The full Fibre NBN is a bonanza to almost every Business in the country. It will drive sales, the same way we've seen eTailers, News & Content, it will lower their costs and drive Profits.

The NBN Co Plan is conservative, actual results are years ahead of forecasts.
If even historical growth rates are sustained, the NBN will be a new standard in "Rivers of Gold".

A National Broadband Network is solely about business and necessary for sustained Productivity Growth underpinning our National competitiveness. We can choose to be a mine and quarry with no value-add or use our world-beating skills in innovation to become and stay competitive in the Information Age.

http://stevej-on-nbn.blogspot.com.au/" onclick="window.open(this.href);return false;

Fairfax TV could become a reality too.

Stevej on NBN
NBN Issues, Commentary & Opinion. 30 yrs in I.T. and Telecomms @SteveJ_CBR or stevej.cbr@gmail.com

[Jovial_Monk]

A bit on telehealth:

http://stevej-on-healthcare.blogspot.com.au/" onclick="window.open(this.href);return false;

[Jovial_Monk]

Comment on a blog:

Great post BB. A small anecdote, a coupleof weeks ago I had business to do in NW NSW and at the last moment realized I had to overnight in a medium sized town. I went to a Motel and enquired if they had a couple of rooms to let. The manager replied that they did, business was slow these days. When I asked why he replied that now Armidale (about a 100 or so Kms to the east) was on the NBN, business travelers always tried to overnight there if at all possible so they could use it. [My emphasis] He bemoaned the fact that his town was unlikely to get NBN for at least a couple of years, and he was losing money until it arrived.

31% have signed on to the 100:40 band, way more than the conservative 18% in the NBN Plan. Fuck Fraudband!

[Rorschach]

The Coalition's policy is a sensible NBN alternative | Delimiter
delimiter.com.au/.../the-coalitions-policy-is-a-sensible-nbn-alternative/ - Cached
16 Apr 2013 ... Australia's technology sector can bluster all it likes about fibre to the ..... can even
compare the current flawed but awesome NBN rollout with ...