nbn is a disaster, page-75

  1. 12,133 Posts.
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    Yeldub,
    But it must be in addition to the ISP costs?

    Lets do a quick sanity check

    Revenue; Say $35/month and every household takes it up. Thats $420/year, 10m houses at $420= $4,200m of revenue per year.

    Costs; Say the Weighted Average Cost of Capital (WACC) is 7%, Thats over debt abd equity. 0.07 x $43b = $3,000 of Interest and equity return.
    However all investments have to pay back the capital as well as service the debt. $43,000m/20 years = 2,150m.

    No amount of spin gets over the basics. Ignoring maintenance, operations, admin and billing. Assuming every house in Australia is connected. Assuming a low WACC the revenue won't cover the interest plus amortisation.
    Bacci
 
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