With the Federal Govt.’s decision on the NBN now delayed until Mr. Rudd’s return from the G20 meeting, more doubts are emerging about the NBN and the required process for it to become viable.
The ‘Australian Financial Revue’ highlights some of these doubts today on P.48:
Extract below…
“The NBN will require much of Telstra’s lucrative fixed-line local network supplementing the copper wires… with high speed fibre connections. The owner of that infrastructure will control the most valuable part of the line but will also need to access Telstra’s infrastructure. That has led to fears of a lengthy legal battle.
Questions remain over the viability of the Government’s proposals. The Government has pledged up to $4.7 billion, but Morgan Stanley analysts have warned that the project may struggle to attract sufficient debt and equity funding without strong reassurance that Telstra will be a customer of the new infrastructure.”
Mr. Rudd will no doubt support Senator Conroy in a long drawn out battle with Telstra by throwing more of the taxpayers billions into the potential NBN morass.
However the question is - Can Australian Business afford a long drawn out struggle with it’s consequent delays and costs?
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