NATIONAL Broadband Network head Mike Quigley appears today before the joint parliamentary committee on the NBN's rollout, so perhaps he can explain what value is being delivered by the $36 billion taxpayer-backed project. Quigley will have to not only justify the headline cost of the project but the limited and costly progress to date.

His first progress report submitted to the committee as executive chairman of NBN Co revealed that after two years and despite spending more than $800 million, only 18,000 homes had been passed with fibre-optic cable and a mere 600 connected. In contrast to the fanfare that accompanies parts of the NBN being turned on, the critical progress report was released two weeks ago, late in the evening, deliberately missing news deadlines. Why? Because it's clear from the report that the NBN is not shaping up as a good news story.

In Tasmania, where the network was first switched on, the take-up rate is less than 15 per cent. Worse, the cost of deploying what little fibre has been rolled out is double the estimate contained in NBN Co's first corporate plan. That November 2010 plan estimated it would cost $2300 to pass each household with fibre but the progress report suggests it is costing $4700 with connection adding a further $1000 per household.

No one, of course, is pointing out that the NBN's costs could explode. Why would they when NBN Co's 900 employees are averaging more than $150,000 a year? And the gravy train doesn't stop there. Consultants, lawyers and IT contractors are doing even better. In the 12 months to June, NBN Co spent $60m on consultants and a whopping $42m on legal costs while $220m has been spent or committed to a billing and operational support system even though NBN Co will be dealing with at most only a couple of hundred customers. And this cost could double.

You forgot to say, they have just obtained permission to access telstra's underground system. Very selective.

All company's have infrastructure. It's cheaper to build 2 houses side by side, rather than 2 blocks apart. This bloke is a war monger. I read that at 2.00pm today.

Surprise, surprise, suprise, not really. The current Labor circus only employs clowns, no jugglers, no acrobats, just clowns

They are jugglers, sonofgloin. Just that they keep dropping their balls :)

...Well SM... I have been a consistent critic of the NBN fantasy since its inception. Just at the point Australia succeeds in installing copper wire service nation wide, Julias three ringed circus began to dismantle the lot! I made the comment in the past, I believe the drug squad need to swoop on parliament house; what other explanation could account for the total catastrophe the reputation of this Government decision making has earned itself!

...Just as an aside, more proof of the dislocated thinking of JG comes from her belief that compensation for pensioners, given to balance the rise in E/L charges destined to occur with the "manic" carbon tax implementation, will assist those pensioners: No it wont, Just as FHOG increased the price of real estate, CT compensation will only succeed in raising rents of pensioners to the same tune as the compensation. Watch this square! It has already become a complaint out here in the big wide world of everyday reality, where the most of us live.