NBN suffers a hit of harsh reality with $31b write-off

has landed on the desk of Labor Telecommunications Minister Michelle Rowland.

When NBN went back to the drawing board it knew it had to abandon one of the central planks of its regulatory oversight – the Initial Cost Recovery Account. This would have been completely unacceptable to the minister, the ACCC, and retail service providers. Instead, NBN is proposing a price construct that will make 100Mbps plans about $5 a month more expensive than 50Mbps plans, which will encourage Australians to move to higher speeds.The big downward movement in the ICRA account should not be confused with the fair value of NBN.

The fair value of NBN is $19.5 billion, according to a valuation by the Department of Finance using a discounted cash-flow analysis. NBN’s first $19.5 billion tranche of debt was at a fixed rate of 3.96 per cent, and the commission found that commercial rates of interest were twice that. It estimated the benefit to NBN at more than $2 billion, as of June 30, 2022.

Elon musk could smash the nbn at will

hey ... look at that... I can get nbn speeds on 5g. didn't need a nationwide fibre network... just a bunch of towers here and there

NBN has always been a white elephant

Another ALP white elephant

All lost under the LNP's watch. Now who are these best Economic Managers we have repeatedly heard about for the past 9-10 years

they'll be writing off the whole lot as peeps take up starlink over time.

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