[LINK] The Cost of the NBN (1870 -v- 2010)

[Tom Koltai]

> -----Original Message-----
> From: Tom Worthington [mailto:tom.worthington at tomw.net.au] 
> Sent: Tuesday, 25 January 2011 8:50 AM
> To: Tom Koltai
> Cc: 'Link list'
> Subject: Re: [LINK] The Cost of the NBN (1870 -v- 2010)
> 
> 
> Tom Koltai wrote:
> > ... I decided to compare the cost of the
> > Overland Telegraph line in 1871 to the National roll-out of 
> the NBN. 
> > ...
<snip>

>And that is what I have sought to do today - place on the record the
facts which are driving NBN Co to the positions we are taking. >I’m sure
Charles Todd would approve."
<http://blog.tomw.net.au/2010/08/mike-quigley-ceo-nbn-co-address-today.h
tml>.

>The newspapers from the time discuss the value of the telegraph and the

>advantages of having it built and run by the one organisation, not 
>unlike today's NBN discussions. Digital copies of the newspapers are in

>the National Library's Trove archive:
<http://trove.nla.gov.au/ndp/del/article/27260867?searchTerm=%20telegrap
h%20Adelaide%20%20Darwin%20%20AND%20%22Charles%20Todd%22%20NOT%20%28METE
OROLOGICAL%20OR%20Advertising%20OR%20METROLOGICAL%29&searchLimits=l-text
SearchScope=*ignore*|*ignore*|||exactPhrase=Charles+Todd|||l-word=*ignor
e*|*ignore*|||fromyyyy|||notWords=METEOROLOGICAL+Advertising+METROLOGICA
L|||anyWords|||tomm|||toyyyy|||todd|||frommm|||fromdd|||sortby=dateAsc>.


Thankyou for that Tom, a brilliant bit of archival recovery. I can never
figure out how to use that stupid search... And for linkers that don't
wish to struggle with ye olde typesetting... Here is the relevent cost
portion of Toms research.

From: 1870 'Scientific and Useful.', The Queenslander (Brisbane, Qld. :
1866-1939), 14 May, p. 8, viewed 25 January, 2011,
http://nla.gov.au/nla.news-article27260867

Quote/ [My brief comments follow]
" With regard to cost, it will much depend on timber being found along
the route. Much of the country is, I believe, destitute of serviceable
trees, and transport will, therefore, form a serious item. I propose,
however, to use only 15 or 20 poles to the mile, and in some places
stone cairns, and by this means keep the expenditure down. It would not
be safe to estimate the cost at less than £80 per mile, or say £120,000,
which is the sum I would recommend should be provided by loan. " We
might recoup ourselves for a portion— say one-fourth or one-third—by the
sale of land in the Northern Territory, which the telegraph would do so
much to open up. " Next, as regards maintenance. Having two lines to
depend upon, it would not be necessary to have stations so close
together. Stations at the Blinman and Yudanamutana Mines, on the
projected Line of railway of 200 miles, would be supported by local
traffic. As far as pastoral stations extend, we should not require an
exten sive staff, as we could easily arrange with the settlers to assist
in keeping the line in order— i.e., to repair casualties. Three or four
stations, with four men at each, would be sufficient to bridge over the
interior to the Nieholson or Roper. 
-
-
-
The annual maintenance would probably not exceed £8000. " Revenue.—The
company reckon 65 messages each way per diem, for 830 working days. My
estimate, in previous reports, was only 25 each way, or 50 per diem ;
and this moderate calculation, at 10s. a message, would yield £8250, or
a Little more than the cost of maintenance, leaving the interest on
first outlay unprovided for. That is all oar existing lines do—they
barely pay their working expenses, but no one doubts that they
indirectly more than repay the colony by the facilities they afford to
the com- merce of the country. It should be borne in mind that the
business will yearly increase with the growth of the colonies; and
further, that the line will promote, more than anything else, the
development of the north. Then can be no doubt of its being remunerative
in a few years. "We might effect an actual saving on the completion of
the line by discontinuing the branch mail service to King George's
Sound— which, with direct telegraphic communication with England, would
no longer be so necessary. If the second plan is adopted, and we connect
with the company's line at the Nicholson, £100,000 will be sufficient;
but we should, in that case, have to divide receipts with Queens land.
In the one case we have the control of a main line through, with a
branch to Queens land ; in the other we have simply a branch line,
connecting with the main, to Queensland. " Should the Government concur
in the views I have expressed, I would suggest that immediate steps
should be taken for obtaining from the Surveyor-General a report as to
the best route, which his extensive knowledge of the country will enable
him to furnish. He has, I think, a party of surveyors well advanced on
the eastern boundary, who might perhaps be made useful as a flying
expedition, with a view to dis cover the route offering the greatest
facilities. As the cable will be laid at the end of 1871, we have no
time to lose; whatever is done must be done quickly. " In conclusion, I
would observe that it is next to impossible for more favorable terms to
be offered to us; and if we fail to accept then we must be prepared to
leave to Queensland the exclusive honor of having, through her own
unaided enterprise and energy, afforded to the Australian colonies the
immense advantages of telegraphic communication with the whole civilised
world. Our geographical position and our intelligence alike prohibit
this.—l have the honor, &c.,
/Quote

It would appear from the projected figures that:

- The overland Telegraph line was not going to be profitable [yet we now
know that was not the case]
- Would result in the cancellation of the King Georges sound Steamer
mail service 
- Would allow additional Greenfield development to the north (real
estate boom) (This in fact led to several 1 sq mile allotments in the NT
in the 1880's.]
- Would provide some employment but not a lot [as the local residents
would be able to carry out much of the maintenance.]

And politicians fond of nay saying on this issue need to consider Todd's
final words...

"Our geographical position and our intelligence alike prohibit this"  he
was of course referring to the commercial disadvantage to South
Australia and W.A. if the overland was a QLD infrastructure play.

Today we could say almost the same.

Anybody with a modicum of intelligence and awareness of the
technological advantages of always on, instant connectivity, without the
Telstra charging rorts of the nineties (or in fact the wireless charging
rorts of the 00's by the cellular carriers)  would be logically
prevented from voting Liberals until either, (A) the NBN is completed or
(B) the Libs agree that the NBN should proceed as planned.


TomK