nbn Poll: Will The Government Deliver on Promise of FTTP to 2 Million Homes for $3.5 Billion Dollars?

[Deactivated] on 04/02/2021 - 23:38

Slightly sceptical of NBN's ability to upgrade Australia's home to FTTP to NBN for $3.5 billion
Given my home is $16.4k to upgrade to NBN. The average we have seen on OzB is 10k ranging from 2.2k to 3k: https://www.ozbargain.com.au/node/602365
$10000 per home upgradex6,000,000 home=$60 billion
Either they are making a lot of money from people paying to upgrade or its not possible to connnect 2 million homes for $3.5 billion
$10000 per home upgradex2,000,000 home=$20 billion

Or the 3.5 billion quote from the government is nonsense. They have said they want to fund the rest from 'private debt markets' which I think would want 4% interest for this infrastructure loan that doesn't generate any income evident from the government taxing NBN alternatives with their NBN $10 tax. Why don't they fund this with government bonds, why are they going through private debt markets?

From the article:
https://www.smh.com.au/politics/federal/two-million-homes-to…
Two million Australian households will be able to demand fibre-to-the-home internet by 2023 as part of a $3.5 billion upgrade of the National Broadband Network in residential streets to begin within months.

The Morrison government says the major infrastructure investment will create as many as 25,000 jobs over the next two years as the existing fibre-to-the-node rollout is extended along streets across Australia.

Two million eligible premises will be able to access superfast NBN speeds under a $3.5 billion upgrade.

The upgrade, which NBN Co will finance through borrowing from private debt markets, will give a further six million homes, or 75 per cent of premises along the fixed-line network, access to broadband speeds of up to one gigabit per second by 2023.

This includes two million eligible households that will be able to access high-speed plans by requesting an extension of the fibre network from the street to the home. A further 2.5 million households have access through upgrades to the Hybrid Fibre Coaxial network and another 1.5 million through the newer fibre-to-the-curb network.

Poll Options

  • 6
    Yes, the quote is realistic
  • 53
    No, the quote is unrealistic
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Comments

  • baytrail on 04/02/2021 - 23:44
    +6

    given the prcing people get from the quote, i assume the includes 1 address (obviously) and all the trenching, wiring and whatnot involved. but on a larger scale i can see it being cheaper?

  • iNeed2Pee on 04/02/2021 - 23:45
    +17

    I'll be happy if the current government actually does anything tbh.

    • ThithLord on 05/02/2021 - 09:49
      +1

      They take well-earned holidays, that's for sure. Lowest sitting PM in Australia's history, before COVID, deserves some time off. Again.

  • SD2310 on 04/02/2021 - 23:52
    +13

    Given this governments track record on promises you’d be lucky to see it get to 1 home

    • iNeed2Pee on 04/02/2021 - 23:54
      +12

      And that will be the home of Josh Frydenberg.

  • spackbace on 05/02/2021 - 00:24
    +4

    $3.5bil?

    I mean, if Labour were quoting it they'd probably say it'll only cost $1.5bil 😉

    • ThithLord on 05/02/2021 - 10:14
      +1

      Labor, but yeah :D

  • Domingo on 05/02/2021 - 00:33
    +4

    The quote for your premises is that much because they'd have to run a significant length of fibre just for you. If they're overbuilding an entire FTTN ADA, they're going to run the fibre down the streets in front of every house at the same time which will be cheaper than individual premises upgrades.

    Plus they're not going to connect every home in those areas, they're going to run it down the street almost like a FTTC build. Then when you meet the conditions that haven't been formally announced yet (possibly 100mbps plan, possibly signing up to a long term contract) then they'll do the build of the fibre lead in. As your copy paste states:

    Two million Australian households will be able to demand fibre-to-the-home internet by 2023 as part of a $3.5 billion upgrade of the National Broadband Network in residential streets to begin within months.

    That means the network will pass two million premises, not that they'll all be connected.

    • smashman42 on 05/02/2021 - 01:03

      I forgot that detail, that they're just running the fibre down the streets and leaving off the most expensive part of the job - the lead in and NTD install

      From the bit at the top, the 3.5 is just the govt's share and NBNco is getting the rest as private debt, right? so probs that much again in debt making the total ~7bil so probs about right for that half a job?

  • garetz on 05/02/2021 - 02:38
    +9

    Has the government ever kept any of its promises under budget ever ?

    • Ghost47 on 05/02/2021 - 16:45
      +1

      Personally I don’t care if they go over budget if the end product is good. The NBN has blown out completely and is sub par. That’s the real problem.

      Even if Labor’s original NBN blew out in cost, at least it’d be FTTH from the get-go. Now we have an overpriced stop gap solution. Just what we need in the age of digital economies.

      • miarn on 05/02/2021 - 17:18
        +2

        Yeah, government work is practically always going to go over budget and schedule. Which is why we should have spent the money doing it properly the first time, rather than spending slightly less on an inferior product that we now need to spend billions more converting to what we should have had from the get-go.

        • Ghost47 on 05/02/2021 - 17:46

          Yeah, I never consider their projected costs to be accurate tbh.

  • Loot N Plunder on 05/02/2021 - 08:08
    +8

    Another pie in the sky from the liberal nationals
    Australia is first in line for the vaccine https://ourworldindata.org/covid-vaccinations
    The liberal nationals all promise and no deliveries
    Since 2013 what major construction or policy has Australia actually received from the liberal nationals
    Lie after lie
    rort after rort
    Criminal activity and police investigation after police investigation
    Accountability there isn't any from the liberal nationals

    The liberal nationals are cowards in parliament with their backs turned and "I move that the member no longer be heard."

    And the lies never stopped "We are absolutely confident that 25 megs is going to be enough on essentially a video entertainment system our NBN will be rolled out within three years"

    Reap what you sow Australia as scotty from marketing has you all played as a fools

    $3,500,000,000 ÷ 2,000,000connections = $1,750 per connection

    Wake up Australia and start smelling the bull shit

    • Ghost47 on 05/02/2021 - 16:43

      BuT mUh nEgAtIvE gEaRiNg!

  • pharkurnell on 05/02/2021 - 09:17

    1 in 10 projects comes in on budget for last 30yrs.. they know they can bleed Gov Co dry.

  • GG57 on 05/02/2021 - 09:54
    +3

    I'm not sure of the point of this post. We all know that government budgets are just 'figures out of the air' and will almost never get delivered for the budgeted expense.
    That is what governments do; both major parties would be the same, as they would rely of the federal public service finance departments or whatever. None of our elected politicians would have the knowledge.

    Having said that, I would be more concerned that this is purely just another announcement with no delivery. That seems to be the track record of the current federal government.

  • Baysew on 05/02/2021 - 20:19
    +2

    Wouldn't it be a happy coincidence if those 2 million homes were in marginal electorates?

  • whooah1979 on 05/02/2021 - 20:25

    The number of NBN contractors was cut from 10000s to ~3000 last year around Covid to June. The rest is being squeezed to do work for 1/3 of the pay.

  • deme on 06/02/2021 - 00:51
    +1

    Same time that bushfire fund scomo promised happens to help people affected by bushfires

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