New analysis of the costs associated with the national roll out of the NBN reveal that the project could blow out to be a $90 Billion disaster for Australia.The pet project of Communications Minister Stephen Conroy was initially scheduled to cost $56 Billion dollars. Currently the project is behind time with observers now claiming that it could take an additional 4 years to roll out.
The administrators of the NBN Co who have surrounded themselves with the same trappings as big profitable businesses, are struggling to manage contractors who have been accused of poor workmanship and are months behind schedule.
According to the Daily Telegraph the Coalition policy claims retail prices charged to consumers would rise annually over the next nine years at double the rate of household electricity bills.
Using modelling from key Telco’s and finance industry analysis of the NBN Co’s 2012 corporate plan, the Coalition has estimated it will take four years longer to finish and potentially cost an extra $45 billion to complete.
The findings are expected to be released this week by Opposition Communications Spokesman Malcolm Turnbull reveal that the real capital costs laid out by NBN management will more likely reach $71 billion, not the $37.4 billion claimed by NBN management who, in September, could find themselves reporting to a new Federal Government.
NBN executives have already admitted to a $1.5 billion cost blowout in the capital cost – to $37.4 billion – with a total cost to taxpayers of $44.1 billion.
Despite the delays and the blowout in costs NBN management has surrounded themselves with layers of PR and communications specialists in an effort to dress up their failings.
Macquarie Bank estimates that from January this year of the real cost per household of the rollout is going to end up being 40 per cent higher than what was being forecast, they also claim that is the project that is currently 50% behind schedule will not be completed until 2025, four years behind the scheduled completion date.
The overall cost to the taxpayer will most likely reach $94 billion, the 12-page costing document claims, also identified is the fact that very few people are signing on to get the fibre based broadband service.
“Australia ranks as one of the most expensive countries in the OECD when it comes to the cost of telecommunications,” Mr Turnbull told The Daily Telegraph.
“Labor’s NBN will hinder Australia competing effectively in the digital economy. The NBN doesn’t have a budget – Labor have handed the NBN a blank cheque and asked them to keep the country updated as to how much it is costing.”
Communications Minister Stephen Conroy has accused the Coalition of having “half-baked broadband thought bubbles” rather than a policy.