[LINK] NBN to cost 24 times South Korea's faster network, says research body

Marghanita da Cruz marghanita at ramin.com.au
Thu Feb 10 12:03:29 AEDT 2011

Given its 30 year lifespan, I agree with most commentaries 
that a simplistic cost benefit analysis is problematic. 
However, it is worth noting, that the NBN is expected to 
return 7% on the government's investment. After all, it is 
some people's superannuation.

Good Governance of the Rollout both in terms of geography 
and technology is crucial. I think there would be some 
benefit in rolling out wireless, to provide coverage sooner 
rather than later.

Richard, there is something you may be able to answer for 
me, at what point is it proposed to aggregate the fibre traffic?

Richard Chirgwin wrote:
> <plug>
> Me on the EIU report:
> http://www.theregister.co.uk/2011/02/09/eiu_says_nbn_too_expensive/
>> The headlines say all you need to know, surely? As reported 
>> <http://www.smh.com.au/national/36bn-price-for-nbn-slammed-20110209-1an2x.html> [1] 
>> all 
>> <http://www.theaustralian.com.au/national-affairs/taxpayers-lead-the-world-in-funding-labor-broadband-bill/story-fn59niix-1226003302845> [2] 
>> over 
>> <http://www.telecomasia.net/content/korea-has-best-approach-broadband-eiu> [3] 
>> the place 
>> <http://www.businessspectator.com.au/bs.nsf/Article/Australia-lagging-world-in-broadband-plans-index-pd20110209-DW4FF?OpenDocument&src=hp1> [4], 
>> Australia's NBN has been rated as too expensive and relying too much 
>> on government support, according to the Economist Intelligence Unit.
>> *El Reg:* Reports have stated that the EIU calculates the Australian 
>> government NBN commitment at 7.58% of total government revenues. If 
>> these reports are accurate, can you please outline the basis of this 
>> analysis?
>> *Iain Morris:* The 7.58% figure is based on taking the public-sector 
>> commitment of the plan (A$27.1bn in Australia's case) as a percentage 
>> of annual government budget revenues for 2009 -- the last year for 
>> which actual data was available when the report was being produced. 
>> It's simply a benchmark that allows comparison between countries. 
>> There is another benchmark in the report showing total public-sector 
>> spending as a percentage of annual fixed-line retail revenues in 2009, 
>> which also makes Australia stand out for the size of its commitment.

Marghanita da Cruz
Tel: 0414-869202

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