So, first we have a promise of a FTTP network, then we have a change of government and they axe that idea, telling us 640KB ought to be enough for everyone*. Now, we have consternation that private companies are stepping in to roll out their own FTTP networks and thus making the cut-down FTTN offerings of the NBN seem less enticing.
The first thing to point out is that this is the 'free market' at work. This magical mechanism is touted by the coalition as a panacea to any and all ills. If a government service is having problems, privatise it and let the free market sort it out. Right down to basic utilities and infrastructure.
The coalition always claims that privatisation will push prices down so what are they worried about? Or does that only work for power, water, roads, transport, health and student loans,?
The second is that 'cherry picking' is precisely what is happening under the new NBN regime. Only installing high-quality/speed services in areas where it is cheaper to do so is functionally the same as only installing them where it is more lucrative - both are about adding more subscribers for lower outlay.
The last thing would be to ask why the Malcolm & Tony's Broadband extravaganza has anything to fear from these competing offerings. After all, they have asserted that people simply don't need and won't use the bandwidth of a FTTP link so presumably anyone signing up to a third-party service will be grossly over-paying based on what they actually need. Again with the free market, surely those people would gravitate towards the service that best fits their needs, which would of course be the NBN.
* - Doesn't really matter if that was ever said . . ."