nbn is the dead duck not tls, page-32

Red Ace and aff67611,

You are both absolutely right, but the NBN winner later will be able to collect a return (rental fee) on their $10-15b investment.

If the return rate determined by the ACCC is 8-16% pa, then the total return (rental) is $1-2b pa. This $1-2b I guess is just the difference Sol talked about between TLS winning and not winning the NBN bid.

This $1-2b pa rental fee is about $50-100/head pa in a population of 21m, or $150-300/family pa, or $12.5-25/month/family. If plus other costs, the final NBN broadband rental (including a IP-phone) should be enough at $40-50/month for a family.

At such a rental price, all the value of all existing copper-wire and cable networks (inc TLS's and Optus's) would be devalued dramatically (just think how much we are paying for these services). I am not surprised if TLS sp will drop to $1-2 sooner or later.