[LINK] Why the NBN business model is deeply flawed

Kim Holburn kim at holburn.net
Thu Feb 16 08:40:26 AEDT 2012

On 2012/Feb/16, at 8:05 AM, Tom Worthington wrote:

> Paul Fletcher MP, will speak on "Why the NBN business model is deeply 
> flawed ...?" at the Australian Computer Society meeting in Canberra, 12 
> Noon 28 February 2012: 
> https://www.acs.org.au/act/index.cfm?action=event&area=9002&temID=eventdetails&eveID=30224664535724
> ---
> ACS TSA Communication SIG
> Why the NBN business model is deeply flawed ...?
> Why it matters from a public policy perspective
> Paul will present the case that, as a standalone business model, the NBN 
> is fundamentally flawed. It is far too costly – reflecting political 
> decisions.

Or engineering and geographic constraints.

> Its take up assumptions are extremely unrealistic, and are 
> unlikely to be met. This matters because taxpayers are paying; and if it 
> is a commercial failure it will also be a public policy failure,

As opposed to having two separate private companies laying cable through publicly owned space to each house each company with a separate group of tied services to its privately owned cable?  And that only in the city.  

All cables, phone copper, fibre must be laid in public space and therefore use public resources. 

> with 
> the likely result being collapse well before the build is complete. 
> There is no cost benefit analysis to demonstrate that public benefits 
> exceed the costs. Early signs confirm the view that the business case is 
> flawed.

Not really.

> The better approach for Government support of broadband is to 
> focus on areas of broadband need, focus on ubiquitous services rather 
> than the highest speeds, make the private sector the driver with 
> government subsidies appropriately targeted where necessary, and to 
> promote a funding model that is sustainable in the long term.

The US approach?  The US government has spent $350 Billion on broadband:




Hasn't worked well so far.  Seems like we're getting our money's worth.

> Biography: Paul Fletcher MP, Member for Bradfield
> Paul Fletcher was first elected to the Federal Parliament as the Member 
> for Bradfield at a by-election in December 2009 and was subsequently 
> re-elected with an increased majority in August 2010. Prior to entering 
> Parliament, Paul was the principal of a strategic consulting firm 
> serving the communications sector and before that was Director, 
> Corporate and Regulatory Affairs, at Optus for eight years. He is a 
> well-known figure in communications policy in Australia and recently 
> wrote a highly regarded book on broadband and telecommunications, Wired 
> Brown Land. Paul previously worked as Senior Advisor, and then Chief of 
> Staff to the Minister for Communications, Information Technology and the 
> Arts, Senator Richard Alston,

Says it all right there.  Partisan and worked for the biggest luddite in the world.

> during the Howard Government. He has dual 
> first class honours degrees in law and economics from The University of 
> Sydney and an MBA from Columbia University in New York where he was a 
> Fulbright Scholar.
> About this Event
> Date: Tuesday 28th February 2012
> Time: 12:00pm for 12:15pm start finish 1:45pm
> Register On-line: 
> https://ibs.acs.org.au/events/event/EventRegister.aspx?operatedById=9002&eveID=30224664535724&id=
> ---
> -- 
> Tom Worthington FACS CP, TomW Communications Pty Ltd. t: 0419496150
> PO Box 13, Belconnen ACT 2617, Australia  http://www.tomw.net.au
> Liability limited by a scheme approved under Professional Standards
> Legislation
> Adjunct Senior Lecturer, Research School of Computer Science,
> Australian National University http://cs.anu.edu.au/courses/COMP7310/
> _______________________________________________
> Link mailing list
> Link at mailman.anu.edu.au
> http://mailman.anu.edu.au/mailman/listinfo/link

Kim Holburn
IT Network & Security Consultant
T: +61 2 61402408  M: +61 404072753
mailto:kim at holburn.net  aim://kimholburn
skype://kholburn - PGP Public Key on request 

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