The NBN $47 billion Internet White Elephant

Rolling out a cable NBN over 8 years into a mobile computing world? Madness. How will NBN sell its services to the mobile generation, like this:?

 

The National Broadband Network (Official Government NBN Website) intends to connect, over the next decade, a government fibreoptic network carrying very fast internet to almost every home around Australia … for free. It promises the best future-proof communication network in the world, improving productivity, health care from home and entertainment revolution. Internet and communication services will be sold by third parties.

Who could resist?

But this is by far the most wasteful and ill conceived deceptive of all the failed Labor government white elephant projects. The list of incompetence and deceit is staggering:

  • It will cost a staggering $43 billion or $2000 per every person. It compared to $330 per person for New Zealand and $60 for the USA. It is 36 times more expensive than the US scheme for wireless.
  • It has a business plan with hardly any financials and unbelievably for such enormous expenditure, no cost benefit analysis – it is a politically not economically planned project
  • It rolls out fixed internet line, in an almost completely mobile internet age.
  • It dishonestly claims benefits to productivity and medical home care without a scrap of supporting evidence – businesses already have adequate internet and seeing the doctor via internet is a decades old dystopic bureaucratic dream – undesired by patients and usefullonly in remote locations.
  • Everybody knows the NBN’s 100Mbs speed will be used mainly for downloading porn, movies and playing games.
  • It commits to this one technology for 50 years, blindly denying the inevitable technological advances in alternative technologies, especially wireless.
  • It takes Australian telecommunication back 20 years to a government monopoly, stifling competition and reducing choice by customers.
  • It will make telephony less reliable – no internet means no phone. No power means  no phone in emergencies, so every household will require trickle charged standby batteries.
  • Prices of internet on network will certainly be higher – they are already.
  • Labor is an organisation that has bungled and wasted billions on every, repeat, every project they have undertaken. They are the most incompetent government in history. Would you hire them to undertake the biggest project in a generation? You’d be barking mad.

The Australian: Senator Stephen Conroy’s NBN threat to Telstra

THE Rudd government has backflipped on one of its key promises about the operation of the new national broadband network in an attempt to bolster the economic credentials of the massive $43 billion project and to enforce Telstra’s co-operation.

The draft legislation released yesterday reveals Communications Minister Stephen Conroy will have the discretion to allow NBN Co to effectively become a government-owned retailer of telecommunications services — particularly for government departments and agencies — in direct competition to Telstra.

In the past, the government has repeatedly said the new network — which will be owned and run by the government-controlled NBN Co — would be a wholesale-only service, providing open and equal access to all retail telecommunications companies.

The explanatory notes now say the minister could allow NBN Co to “offer services directly to certain end users, for example government agencies”.

———-

Business Spectator: Conroy’s costly NBN mistake

Late last Friday, Senator Stephen Conroy made the following media statement: “NBN Co will operate on a wholesale-only, open and equivalent access basis, delivering long-term benefits for competition and consumers.”

Unfortunately, the current wholesale access pricing model will prohibit direct participation on the NBN by providers with less than 250,000 customers.

Oops.

Whether intentional or not, this has to be fixed if we are to expect the NBN, whose problems obviously run deeper than new controversies surrounding exorbitant construction costs, to achieve the policy aims stated by the government.

8 thoughts on “The NBN $47 billion Internet White Elephant

  1. “It will cost a staggering $43 billion or $2000 per every person. It compared to $330 per person for New Zealand and $60 for the USA. It is 36 times more expensive than the US scheme for wireless”
    I find it amazing that the total cost in New Zealand and America is so low to build and equivalent system. Perhaps what you have here is not the total cost, just the money given away with no expected return (subsidy)

    “It has a business plan with hardly any financials and unbelievably for such enormous expenditure, no cost benefit analysis – it is a politically not economically planned project”
    Millions have been spent showing the NBN is financially viable.

    It rolls out fixed internet line, in an almost completely mobile internet age.
    My family have 3 mobile data (phone) accounts and 1 fixed line. Typically we download 500 times more on the fixed line. While at home, or work and school, my family uses wifi, supplied through a fixed line, to avoid the high cost of mobile data use.

    “It dishonestly claims benefits to productivity and medical home care without a scrap of supporting evidence”
    There have been many studies around the world showing benefits. Google is your friend.

    “businesses already have adequate internet”
    All businesses or some? Most businesses don’t have the opportunity for anything more then ADSL, and its pot luck as to the quality of that connection.

    “and seeing the doctor via internet is a decades old dystopic bureaucratic dream – undesired by patients and usefull only in remote locations”
    Stay at home when sick, or travel to a doctor, and wait with other sick people for an hour or so. Hard choice.

    “Everybody knows the NBN’s 100Mbs speed will be used mainly for downloading porn, movies and playing games.”
    Why is it bad for people to have entertainment? People also use the internet for other things, such as telecommuting, email, social networking, video conferencing, data backup, education, VOIP etc.

    “It commits to this one technology for 50 years, blindly denying the inevitable technological advances in alternative technologies, especially wireless”
    We have used copper for a long time, how much longer should we wait for magic to replace it?

    “It takes Australian telecommunication back 20 years to a government monopoly, stifling competition and reducing choice by customers”
    20 Years ago we had a choice of Telstra. Now we have a choice of Telstra, or someone who piggybacks on Telstra’s lines, paying Telstra’s charges. The NBN promoted retail competition, which is why prices to use the NBN are equivalent or cheaper even when they compete with teltra’s already built network.

    “It will make telephony less reliable – no internet means no phone”
    My Phone is already unreliable. The copper is old…

    “No power means no phone in emergencies, so every household will require trickle charged standby batteries.”
    Or, use a mobile like everyone else does.

    “Prices of internet on network will certainly be higher – they are already.”
    The evidence shows otherwise.

    “Labor is an organisation that has bungled and wasted billions on every, repeat, every project they have undertaken. They are the most incompetent government in history. Would you hire them to undertake the biggest project in a generation? You’d be barking mad.”
    woof Woof

  2. Can’t tell if serious and a complete moron or whether you are joking.

    This is such a poor excuse for an opinion I certainly hope nobody thinks you are an informed or even intelligent person.

  3. Do the people behind this website have any actual knowledge of what you are going on about?

    I DON”T THINK YOU HAVE A CLUE OF WHAT YOU ARE TALKING ABOUT!!!!!

  4. I just hope that when people read this and realise just how utterly dishonest it is, they might read the rest of the web site and begin to realise they’re being taken for a ride.

    All the anti-Labor bullshit. Beat ups taken out of the Murdoch press. Out of date articles (like for instance the one on this page). And the totally unhinged invective spewing forth.

    Come on people, you’re being taken for a ride by the Liberals and the people who run sites like this. Get out there and check the facts. Ask around. Google it for gods sake. Realise when you’re being lied to.

  5. “The NBN $47 billion Internet White Elephant”

    yet

    “It will cost a staggering $43 billion ”

    Do you do the liberals costings as well as run shonky websites?

  6. The lying, ignorant, incompetent cretins who run this website can’t even count. It’s bad enough that they want to keep us all in the pre-industrial age.

  7. 5 Billion cost to 50 so why do people find it so hard to believe it could be closer to 100 billion left to Labor? The cost of the NBN is money paid less (projected) income. This will be way less than NBN budget because while Telstra are banned from advertising against the NBN they get around this by advertising “sign up for NBN” LOL naturally most find out they can’t. Then the bait and switch is easy, how about a 4G dongle (5G soon, then 6G) that’s as fast as the first 2 NBN plans and you can have it now!! So forget the projected income, it’s way off. That’s why the NBN will cost a lot more than 50 Billion imho.

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