"Easily solved by providing incentives and subsidies to business to develop in those areas."
How much and for how long? Sounds like a never ending pit of taxpayer money being thrown at private enterprise to make it profitable for them.
NBN money to be paid back WITH interest.
"f a private enterprise decides that this is warranted how does that affect the end user's cost? As we have seen historcially, it doesn't."
It's only warranted because it's NOT open access now. You have to repay 2 capital costs now instead of 1. Worse for the consumer contrary to your statement.