NBN could become 'worthless': Telstra CEO
Lucy Dean
Yahoo Finance
29 July 2019The troubled National Broadband Network could “become worthless” if a “biased” pricing structure isn’t addressed, the chief executive of Telstra has said today.
Telstra CEO Andy Penn said all broadband operators are losing money reselling the taxpayer-funded National Broadband Network (NBN) and are looking to use cheaper 5G networks to bypass the service and turn a profit...
As it stands, the budget for the NBN broadband roll out has hit $51 billion – 75 per cent more than announced in the 2015 pre-election budget..."The impact of this on Telstra is profound – it means we lose between one-third and half of our earnings. You cannot take away a material part of a company's business and earnings and expect it to carry on with the same strategy and the same workforce.
In June, Australian Huawei executive David Soldani said the NBN had failed to reach its goal.
“The NBN project has failed and Australians need to stop expecting NBN Co to deliver high-speed broadband to all Australians – it is just not going to happen,” he said.
“Australia has somehow managed to invest $51 billion on a network that can't even deliver 50Mbps to around one million of its fixed-broadband end-user premises.”
He said Huawei had spent $10,000 for each activated premises on the NBN fixed wireless network, but hundreds of sites were delivering 6Mbps or less at peak-time - “worse speeds than many were getting on old ADSL services”.
All of it:
https://au.finance.yahoo.com/news/telstra-ceo-warns-netflix-will-become-worthless-073616169.html
