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Nick Minchin

Leader of the Opposition in the Senate
Shadow Minister for Broadband, Communications and the Digital Economy
Liberal Senator for South Australia
Nick Minchin

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Senator the Hon Nick Minchin

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WHAT THE ANALYSTS ARE SAYING ABOUT THE BUSINESS CASE FOR LABOR'S LATEST BROADBAND PLANEmail this pageBack

Thursday, April 09, 2009 Printer Friendly Version

WHAT THE ANALYSTS ARE SAYING ABOUT THE BUSINESS CASE FOR LABOR'S LATEST BROADBAND PLAN

AAPT CEO Paul Broad:
"Like everybody else I was staggered by [the announcement], I've never seen anyone prove, in any form that fibre to the home stacks up economically."

John Durie, April 9, The Australian:
"Frankly, the NBN Co proposal smacks of something Communications Minister Stephen Conroy dreamt up in the last few weeks."

Melbourne Business School's Paul Kerin:
"It represents an incredible waste of taxpayers' money...

"While our Government announced that the new network would be 'built and operated on a commercial basis', investors—including taxpayers—stand no chance of earning commercial returns.

"And within the FTTH network’s five-year build program, it may well become redundant or lose any competitive advantage, given advances in alternative broadband technologies (ADSL, wireless, enhanced HFC). No commercial investor would invest in FTTH in Australia. No wonder it will be majority government-owned."

Ovum research director David Kennedy expects a realistic roll-out of a fibre-to-the-home network to take up to 20 years:

"What doesn't make sense is to press ahead with a Government investment that doesn't get return on investment, or to try to do that too early. We need to be realistic about what's achievable, and what that means is that we have to accept that it won't be everywhere for quite a while, and the timeline is in the order of 15 to 20 years."

Terry McCrann, Herald Sun

"It's not crazy, it’s insane...

"A $10 billion fibre-to-the-node network doesn't make sense, so what’s Emperor Kevin’s solution? Build a $43 billion - going on $60 billion - fibre-right-into-every-home network instead… Way over the top and unaffordable..."

Former Optus executive Paul Fletcher:

"Australia has seen a previous episode of rolling out two broadband networks, the Optus and Telstra Hybrid Fibre Coaxial networks that together pass about 2.5 million homes in the main cities. The unsatisfactory financial returns generated on that occasion may make private sector financiers wary about participating in the new network.

"They may wonder where the traffic will come from to fill up the new network and generate the revenue streams necessary to earn a return on the $43 billion.

"After all, the incumbent Telstra, which dominates voice telephony and broadband, will be allowed to continue to operate its own network. So when the new network operator starts looking for traffic to carry on the network, it may well not have Telstra as its 'anchor customer'."

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