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The Forum > Article Comments > Who will use, or be able to afford, the NBN > Comments

Who will use, or be able to afford, the NBN : Comments

By Malcolm Colless, published 9/11/2010

Neutralise the spin, and there's not a lot to recommend the NBN.

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Let them eat cake.
Posted by Kenny, Tuesday, 9 November 2010 9:55:54 AM
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Funny how the author glosses over *why* utilities are becoming so much more expensive. They were built, like all public utilities, using public moneys on a not for profit basis. Only since privatisation have the costs blown out and service reduced. This is not surprising when one realises that privatisation requires competition, which in turn requires duplication and Return On Investment (ROI).
Public monopolies must include some redundancy for maintenance, staff turnover, etc and this, when compared to a *single* company in a privatised system seems "inefficient". When compared to the whole competitive market however, public utilities are an absolute bargain!
Here's the rub: Public monies use cheap government borrowing (there goes a few million in financial profits), minimal marketing (another million or so in marketing profits), competitive tendering (more gouging opportunities lost) and redundancy along the lines of maintenance staff (worker wages? where's the profits?). Privately run power companies are notorious for minimising maintenance then blaming "externalities" for the inevitable disaster.
Government also has transparency requirements (no more "commercial in confidence" escape clauses) and has tighter spending controls.
Anyone with any inside knowledge of Telstra since privatisation will be very familiar with the fallacy that public infrastructure is more efficient when privatised. Power retailers and public transport are also good examples, not to mention the rising % of medical costs that have *nothing* to do with medicine!
Now all this anti-NBN ranting is put in context we can see what the real issue is: If the government builds it then private companies cannot gouge the public and maximise their profits...they have to compete with value or not play at all.
Posted by Ozandy, Tuesday, 9 November 2010 11:00:18 AM
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How many residents would be prepared to pay way above $100 per month ($100 being the concessionary introductory retail charge to attract customers in Tasmania) for the NBN 100 Mbps service, particularly after having to pay a substantial sum for connecting to the NBN, or, already being serviced by alternative mobile/wireless internet services? That is the burning question.

It is in this context that the author raises his very pertinent question, namely, how far is the Government prepared to subsidise use of the NBN. Sadly, the Govt avoids any consideration of this, by bluffing about the nebulous incremental benefits of the NBN.

That the Govt will need to heavily subsidise NBN customer usage, appears beyond doubt. In face of the mammoth $43 billion capital expenditure and the massive ongoing subsidisation of NBN usage, surely there would be many projects more deserving of public capital expenditure, particularly as private capital can be relied on for development of faster broadband internet as the demand evolves. It is high time that the Govt addresses this issue by doing a rigorous cost-benefit analysis of the NBN, so that cost-effective allocation of scarce public capital can take place, and so avoid the outrageously expensive white elephant that the NBN promises to be. Failing a cost-benefit analysis, the NBN should be referred to the Productivity Commission for economic analysis and report.
Posted by Raycom, Tuesday, 9 November 2010 11:19:35 AM
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Public infastructure will always be a cost.
City does not need it so do the country and forget the city.
Posted by 579, Tuesday, 9 November 2010 12:29:35 PM
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we should have stuck..with fibre to the node
i know..i will never use a freeway..built right to my front door
thus resent..it..being built...[for me]

by the same measure..im sick of bying at 10 bucks a meg..[gig..or whatever]...the idea of paying..per gigabyte..[at arround..a few bucks]..does seem,..fair..as i use less than one a month

those who use more..should pay
the idiots that want high definition...deserve to pay..for it
the more you use..the more it should cost

[that..[hd]..was a huge con..to chew up..free to air bandwidth]
my needs could easy be met with a landline...[that ONLY connects to the web]...

i NEVER use a phone..[dont even own a phone..of anytype]
thus bundeling..is an absurdity

i got a perfectly functioning copper line..right into my home
it could deliver more than i could ever use

instead im using one of them plug-in..modum/stick..thingy
and even that is on trickle..[and even that is plenty fast for me]

that being said..its my only line to the outside world
this moring it was playing funny buggers...didnt recognise me[anmd refused to work]...

meaning i need to spend 80 to 100 dollars to get a new stick..then 12 months..15 gig limet download...[near 150].costing over 200 bucks...

[and im over it]..its not worth doing that scam again
enron pricing...then the nbn...

no im over it all
when this stick dies..so does oug

and i will then use snail mail...
[i got hundreds of..unsused mint postage-stamps]
Posted by one under god, Tuesday, 9 November 2010 12:44:37 PM
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The NBN, a $43bn internet gaming and gambling platform.

We should call Conroy Gameboy.
Posted by Shadow Minister, Tuesday, 9 November 2010 1:09:05 PM
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