Follow the money - the banks go mobile, while Conroy spends $50BN for fixed NBN
MediaWatch last night

The NBN - a few misconceptions

Karl wrote in overnight with this blog comment and I think Karl's thoughts reflect those of a lot of supporters of the NBN.

Karl said:
I'm not going to bother trying to argue logic or ideology, I would just like to point out the absolute unquestionable lies in this article:
1) Conroy is not spending anything on the NBN, he is investing.
2) He is not investing $50bn, he is investing $30.4bn. Source: http://www.nbnco.com.au/about-us/corporate-plan.html
3) "miles and miles of trenches dug in the ground" Nope. There is very little digging of trenches required, because NBN Co have a contract to use all of Telstra's ducting.

Karl thanks for the note.

1.    Investments by their nature should return to the investor a rate-of-return that takes into account the cost of capital and the risk associated with the specific investment.   Could you point me to the business case and its assumptions which make out the case that the taxpayer funds applied to the NBN are an "investment".

2.  Senator Conroy is a little confused about how much money will leave government coffers to go into the hands of various contractors, including Telstra.  Have a listen to the good Senator himself here, he underestimated the capital and leasehold expenses by $11 billion.

3.    I've interviewed plenty of people, most notably in Nowra, who've had their nature strips ripped up and a trench to their home laid.   This announcement for the NBN in Tamworth, Tony Windsor's seat, states:

Tamworth

Construction Update - 2012-05-09

Civil construction is underway in the Bald Hill area, which means installing new underground infrastructure -- digging trenches, boring for new pipes and installing new pits.

Construction Update - 2012-04-20

Civil construction is underway in the Bald Hill area, which means installing new underground infrastructure -- digging trenches, boring for new pipes and installing new pits.

Karl I am familiar with Telstra's existing infrastructure and the building and operation of data, mobile and satellite network.   This article explains a little of my background.   The NBN, sadly, is a dog.

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