NBN CO told to pretty itself up for bankers by 2017 Australia's NBN Co, the company building the once-FTTP now-“multi-technology model” National Broadband Network (NBN), has been given a deadline: look sexy to private investors by 2018. That's when the government has decided it will cease funding the network in any way, with last night's federal budget setting down the …
Which is exactly the point. It's another Labor disaster. They couldn't build it, they knew they couldn't build it, so with this hamstringing they are leaving it to the next government to fund. By cutting off funds they are "balancing the budget" and bugger the future.
The economic credentials of this lot of morons are pathetic. Sell everything, buy nothing and watch the country go to hell. But they will have "balanced the budget". After that there will HAVE to be substantial government expenditure (or substantial household expenditure) to have the country functioning again.
Relax everyone - everything is going to plan. The Labor Party needed to spend money on big projects to ensure that Australia was barely touched by the GFC, the NBN was one of these projects. The danger of the GFC has passed, spending lots of money on non-urgent infrastructure will gain little for the nation but add to the debt in a time when Australia can afford to be tightening the belt and getting rid of the debt. Slowing (and also cheapening) the progress of the NBN with technology that will be required to be replaced at sometime in the not-too-distant future, gives this Government (and future govts) a project that can be taken off the shelf and continued (hopefully with technology current for the day) at some future time - most likely this will be when there is a need to prop up the economy with govt spending. The parts of the NBN that were done properly will still be good, the parts that were done on the cheap will need to be redone (but maybe after the parts that have not yet been touched). In the meantime the govt lowers the amount it owes, maybe even builds up a surplus, and the general population continues to either hate or love the government for what it has done/is doing depending on where they get their news reports from.
... In that they will most certainly be dropped off the todo list as they will be moved to the not economically viable then..... Don't worry black spots ... you are not alone... there will be many of you.... Great for the economy this new NotaBroadbandNetwork but a NetWreck....After all having high upload speeds would be a loss for the economy of oligarchs. This guvernment is economically incredulous and irresponsible.... Australia the sink ship of political whim.
I was at 4 shops yesterday that used to have large areas dedicated to selling smart phones. One now has its entire collection of mobile phones in the glass cases that were originally put in to market cigarettes and the other had a few $50 prepay phones. To me that means the mobile phone market is saturated and if that is the case, the premium people were paying for faster/better phones is close to drying up which means the only way telcos will compete in the near future is in their networks. Since even Telstra is already pushing the TV ads in that direction, and the other two will have to push for more bandwidth for less money which will push data prices down substantially. I would say the writing is on the wall for fixed line connectivity and that breaks the old NBN business plan. If we project US fixed connection rates to the current population, NBNco will not have more than about 5 million residential customers when they go looking for banking handouts. If we use iiNet numbers, that will be worth less than about $4 billion in revenue a year and compared with most companies would put their market cap in the $1B -> $4B range with an asset base that looks just like Telstra but without the high value customers. While I wouldn't touch it as an investment, I'm sure the morons who throw my retirement money away will sign up for as much as they can buy.
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