I believe in public debate, but I also believe in facts. In the ongoing row about Australia’s National Broadband Network (NBN), facts are an early casualty. Some of the non-facts bandied about are to do with the NBN’s technology, but instead, I’d like to deal with aspects of the political and business dealing that are widely …
So is this monopoly assurance?
If Telstra kept or sold their copper network, they or a purchaser could sell cheap connectivity to all the customers who don't care about getting FTTH speeds. That'd threaten the viability of fibre, so this is a play to ensure that doesn't happen and users get a choice of fibre or nothing?
NBN is a misnomer
In reality the Network is 121 Regional Broadband Networks (or RBNs) that will be stitched together by a third party provider (Telstra, Optus, NextGen). For example the Northern Territory FSA will not be able to connect to the rest of Australia, (let alone the world), without using some other party that is NOT the NBNco in order to do so.
"income of government-owned enterprises" IS taxpayer's money
The simple fact is that income of government-owned enterprises belongs to the people. If assets are purchased with this money, sold and then purchased again with taxpayers funds there is a good chance a private enterprise has made a killing. If the sale and purchase prices are in favour of the private (non-government) enterprise then taxpayers' money has been squandered.
Who made the killing?
Perhaps it was the Howard government which made the killing by selling its shares for more than they were worth.
More than they were worth?
Well no one forced anyone to buy them - and people who bought them knew fully that they were buying a monopoly, which meant only one direction for market share to go...
'The network wasn’t actually funded by government.'
Don't see how this can be correct.
The majority of funds for construction of the first networks were presumably entirely derived from funds allocated to the Postmaster General's Department in the various Federal Budgets. Income from that network would eventually play a part, but I reckon it's doubtful that it ever covered the capital costs.
As far as I can see, the PMG wasn't really "a government-owned enterprise" (as opposed to assets directly owned by the government) prior to Telecom's creation in the mid-70's.
NBN really stands for...
...National Bittorrent Network.
@NBN really stands for... ...National Bittorrent Network.
Not when it'll probably cost more than what you're getting now.
What? Did you think it was going to get CHEAPER?!