NBN broadband comments, made by the world’s richest man Carlos Slim a telecommunication’s mogul, appear to have upset Communications Minister, Stephen Conroy who has moved to defend the proposed $43 Billion dollar network.Conroy is also considering holding onto the NBN a move which Turnbull has described as a breach of the Trades Practices Act.
Slim who has joined a chorus of experts in slamming the cost of the network claimed the National Broadband Network was a waste of money. ”It’s too much money. It’s not necessary to invest so much money because technology is changing all the time,” he said.
The 70-year-old, who could pay for the proposed NBN network out of his personal wealth, is worth an estimated $55 Billion.
A telecommunications expert he owns 90 per cent of Mexico’s landline services that supports 150 million mobile phone customers across Latin America.
In response to Slims comments about the NBN a spokesperson for Conroy claimed that it was clear that Mr Slim had not read the government’s NBN implementation study. Conroy’s office said that the report would be forwarded to him.
Yesterday Slim also said fibre was not enough and the government should invest in mobile, wireless, cable and copper networks as well a sentiment that is being pushed by the Tony Abbott led Opposition.
In a barbed response a spokesperson for Conroy said “Mr Slims’ comments about the NBN are no surprise given he has become the world’s richest man by owning a vertically-integrated monopoly,” Senator Conroy’s spokesman said.
Conroy claims that the $43 billion cost of the network was a conservative estimate and there were opportunities to significantly reduce the cost however several experts including Graeme Wood, the founder of the online travel bookings service Wotif.com and the opening keynote speaker at the recent World Computing Congress who said that the National Broadband Network had the potential of being a “$43 billion hi-tech babysitter”.
Also slamming the NBN costing is Vocus Communications, chief executive James Spenceley, who likened the NBN to “giving everyone a Ferrari” when they might be content with driving a Commodore.
Conroy claims according to Fairfax media that the NBN would generate sufficient earnings by the end of year seven so that the investment required by the government would peak at $26 billion, of which $18.3 billion would be required over the next four years.
“The Implementation Study confirms that the NBN Co can develop a strong and viable business case, generating stable and positive cash flows, and that the Government will get a moderate return on its investment sufficient to cover its cost of funds,” the spokeswoman said.
Opposition communications spokesman Malcolm Turnbull says that Conroy’s comments are not accurate neither are his NBN costings.
Turnbull has also slammed Conroy’s comment that he is considering a Greens proposal to keep the NBN Network as a Federal Government monopoly after it is built, as opposed to the original plan to sell it to the private sector after a number of years.
Turnbull told the Fairfax media “This monopoly is so repugnant to the provisions, the competition laws of the Trade Practices Act it could never get approved by the … ACCC,” he said.
“So Senator Conroy has to pass special legislation to effectively take it out of the competition laws in the Trade Practices Act. This is a remarkable act of government – you know, of direct government intervention.”
