Reply to post: Rural subsidy?

Keep monopoly or make network expensive, NBN Co warns

David Roberts

Rural subsidy?

Just to check.

If the issue is that a previous Government decided to mandate broadband for all at a price which does not reflect the cost of provision, and decided that rather than subsidise it directly they will allow the Telco to redistribute revenue from "cheap to provide" areas, this might be a workable model.

Popular with rural areas, not popular with cities, but might avoid the traditional padding of costs where government subsidies are involved.

So on the face of it the current government removing the monopoly on the revenue generating part seems to scupper the whole idea.

Is this the intention, to remove an unpopular agreement made by a previous government?

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