[LINK] Expert predicts broadband cost blowout

Kim Holburn kim at holburn.net
Fri Jul 30 10:18:20 AEST 2010

So who is the "expert" Malcolm McKenzie?

The comments to this are interesting.

BTW does anyone else get annoyed about the ABC websites comments  
policy?  They only open an article for comment occasionally and only  
for a short time then close it.  What's that about?


> Expert predicts broadband cost blowout
> By Di Martin and Tim Leslie

> There are claims the cost of the $43 billion National Broadband  
> Network (NBN) could double.
> Experienced industry consultant and project manager Malcolm McKenzie  
> has told Radio National's Background Briefing program the costs of  
> big telecommunication rollouts always blow out.
> The claim comes as the Federal Government prepares to announce that  
> more than 300,000 extra premises will be connected to the NBN than  
> originally planned.
> "I would say for any project this size, [a cost blowout of] 50 per  
> cent to 100 per cent would not be unrealistic," Mr McKenzie said.
> He says red tape and rain are just two issues that will cause delays.
> But NBN chief Mike Quigley says the Tasmanian trial, which is about  
> to be launched, came in on time and on budget.
> "I would be surprised if, as we move forward, we didn't get in fact  
> better," Mr Quigley said.
> He says the NBN's business plan shows the network will turn a  
> profit. The business plan is not public.
> Mr Quigley says it uses more pessimistic assumptions than a major  
> consultant's report commissioned by the Federal Government.
> "What I would say, and I'm not going to go into details of those  
> differences in the assumptions other than to say we came to the same  
> general conclusion that an acceptable return could be generated for  
> the government," he said.

Kim Holburn
IT Network & Security Consultant
T: +61 2 61402408  M: +61 404072753
mailto:kim at holburn.net  aim://kimholburn
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