Diver, Thoughtful posts, even if I don't like the logical result.
What you are describing is a government monopoly with the old PMG installed copper replaced by fibre. I can understand this may be what is intended but it is not what the government has described.
It has described increased competition with people having the option to connect to the NBN. 1) Many users have already paid to be connected to privately owned fibre. Do you see them paying twice? 2) Will other fibre network owners be able to connect the cheap to service users, or will NBN have a monopoly in order to cross subsidise?
