NBN-Changes Ahead

Australia’s Financial Review carries an article titled “Coalition mulls NBN Co split to speed construction” The new government is considering creating two separate entities -one in charge of construction and the other, operations. This article stats that, The proposal comes as the NBN rollout struggles to ramp up and meet its targets. Under Labor, the NBN rollout missed several key construction targets. NBN Co’s 2012 corporate plan forecast it would pass 359,000 homes and businesses with fibre by June 30, 2013, but it only reached 207,500 premises. The delays were frequently blamed on labour shortages, planning issues and a range of other problems that resulted in dissatisfaction among unions, contractors and sub-contractors. Leaked internal forecasts showed NBN Co was set to miss its target of connecting fibre-optic cabling to 1.13 million existing homes and businesses by June 30, 2014, by 273,065 premises. Service Stream, one of the key companies building the NBN, reported a 672 per cent fall in net profit as it pulled out of the project. My views on massive  incumbent-centric state sponsored broadband roll outs can be seen under the labels National Broadband Plans, Broadband Networks. I believe lack of competition is a major concern in such initiatives.