4 years ago
NBN DEBT RISES ON THE SAME DAY GOVERNMENT BRINGS ON BROADBAND TAX
MICHELLE ROWLAND MP
According to reports in The Australian, NBNCo will take on up to a further $4 billion in debt to fund the network.
This carefully timed announcement comes on the same day the Morrison Government is progressing a $7 per month broadband tax in the Senate – a Bill it has delayed for three years.
These twin events are symptoms of a $51 billion multi-technology mix that has reduced the cash flows available to NBN by a staggering $500 million per year.
The reduction in long term cash flows arises from a reliance on older technologies that cost much more to operate, generate less revenue and incur billions in upgrade costs that would not have been incurred under the original NBN plan.
The fact NBN is already having to take on more debt is a reminder that doing it once with fibre, and doing it right, was economically superior all along.
This carefully timed announcement comes on the same day the Morrison Government is progressing a $7 per month broadband tax in the Senate – a Bill it has delayed for three years.
These twin events are symptoms of a $51 billion multi-technology mix that has reduced the cash flows available to NBN by a staggering $500 million per year.
The reduction in long term cash flows arises from a reliance on older technologies that cost much more to operate, generate less revenue and incur billions in upgrade costs that would not have been incurred under the original NBN plan.
The fact NBN is already having to take on more debt is a reminder that doing it once with fibre, and doing it right, was economically superior all along.