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The Forum > General Discussion > Economic Management, the NBN and LNP.

Economic Management, the NBN and LNP.

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The NBN is to be built from the outside in ensuring that electors in the nether regions will see the benefit first. Presumably most of these people (who's lives will be transformed first by fast internet) normally vote LNP. It is for this reason that I sense your concern SM

Your allegation that the NBN is a Labor ponzie scheme is laughable and doesn't even constitute misinformation. Sorry SM but your view is nothing more than a Neo LNP toss.

It's like saying that the building of hospitals is a Labor ponzie scheme. I for one am not fond of the current Telstra monopoly created by the Howard Gov't when they sold our telecommunications network for a song to same people whom have attempted to stall and sabotage the Gov'ts attempts to provide world class telecommunications infrastructure ever since, in the NBN.

"The last thing anyone would want to do is sell an essential services monopoly". John Howard did it.

It would have been a lot cheaper to implement the NBN had we not sold Telstra in the first place, on that you can rely SM.
Posted by thinker 2, Monday, 12 December 2011 5:44:01 PM
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rstuart and thinker 2 have your measure SM.
I struggle along behind shaking my head trying to understand how you come up with this.
And how Australia will handle the coming fall.
The formula appears to be this.
Labor is wrong, always
Abbott's NO alition is right , always
ANY examination, any at all, will see the impending change of government.
[ Labor haveing no intention of getting Gillard out/contending the election]
We are to install a party not even closely related to Truth, honesty, or good governance.
Posted by Belly, Tuesday, 13 December 2011 5:11:58 AM
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The constant whining about so-called “cost-benefit analysis” misses the point.

The NBN is not a Shopping Centre – it’s national infrastructure.
What’s the cost-benefit analysis of a local Hospital or a National Highway?

More to the point, what is the economic cost of NOT having a particular highway? Nobody knows or cares cares until the highway is blocked.

Demanding that the NBN turns a profit is like demanding that every highway, road and track in Australia becomes a profitable tollway.

Most people don't "need" an all-weather asphalt road capable of supporting vehicle speeds of 100 kilometres an hour by a 50-tonne B-double semi-trailer - or, for that matter, by an SUV the size of Venezuela laden with an eight-year-old child, 10kg of shopping and a soccer ball.

Nevertheless we provide such roads at taxpayers' expense for those who do need them, such as freight companies, or those who imagine they do. Any analysis that looks solely at individual home usage is just wrong.

In any case The OECD report Network Developments in Support of Innovation and User Needs from December 2009 shows that a fibre-to-the-home network like the NBN could pay for itself in 10 years, even if fully government-funded.

Nor is the NBN about providing what individuals need today. It's about building for the future.

The piecemeal alternative of some mongrelised network made up of 4G phone, Wireless Hotspots and bits and pieces is as future-proof as was the now-defunct Howard/Fisher CDMA phone network - provided at enormous public expense just to soothe rural voters when the CDMA was switched off.
Posted by wobbles, Tuesday, 13 December 2011 7:41:56 AM
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Rstuart,

You are selectively misquoting me. I said that the existing ASDL speeds meet all the functionality requirements that Juliar used to justify the NBN. People buy Porsches that can do 300kmph, I have yet to find anyone that needs that speed.

Your little graph is of the distribution of the first few technophiles that took up the service and is highly unlikely to represent the general population.

My predictions on wireless take up as we have discussed before are based on other OECD countries take ups, and given the rapid advance in wireless 30% take up by 2020 is simple to predict.

The reason I called the NBN a ponzi scheme is that its finances are starting to resemble a ponzi scheme in that the company is sticking to its predictions of a 7% return based on its business case in spite of warnings from the NBN's own consultants that:
1 - Costs of construction are blowing out
2 - operational costs in the business case are unrealistic
3 - The project is already far behind schedule
4 - There are now no further restrictions on Telstra and others from rolling out parallel wireless 4G networks.

The request by the NBN to increase costs by inflation +5% p.a. for a decade was simply to meet its increased costs. Labor made a political decision to limit its increases to 1/2 inflation, yet still insists it is going to make a profit. Really! how stupid do they think we are? The fact that NBN co's finances are state secrets should indicate that all is not well in NBN never never land.

Labor is using Enron type accounting, NBN co does not appear as an expense on the government's books as the money poured into the company is marked as an asset at book value. The crunch comes when the books are opened and the real value is a fraction of the book value and the pyramid collapses and the difference needs to be marked as a government deficit. Juliar intends to happily hand this can of worms to the next government.
Posted by Shadow Minister, Tuesday, 13 December 2011 9:51:03 AM
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Perhaps you can get some liars, spivs or dodgy accountancy firms to verify that for for you SM
Posted by thinker 2, Tuesday, 13 December 2011 10:52:13 AM
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Sorry,

They are all working for Labor.
Posted by Shadow Minister, Tuesday, 13 December 2011 11:03:31 AM
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