without telstra, broadband network is doomed

http://www.brisbanetimes.com.au/business/broadband-network-doomed-without-telstra-experts-20100428-tsfv.html

EXPERTS in the telecommunications industry say they struggle to see how the government's $43 billion broadband network can be commercially viable without Telstra's involvement, giving further ammunition to Telstra in its negotiations with the government.

The Communications Minister, Stephen Conroy, has been defiant on the financial prospects of the national broadband network (NBN) even without Telstra participating, pointing to an implementation study that shows how it can be built without Telstra.

But an independent telecommunications consultant, Kevin Morgan, has dismissed the commercial prospects of the network without Telstra's involvement, saying it would only be built with hefty government subsidies.

On his sums, if the network costs $40 billion to construct, for it to generate a return of 10 per cent it would need to earn $6 billion to $7 billion a year.

Mr Morgan said the absence of a deal with Telstra would drive up the cost of building the broadband network, deny it the revenue stream that would come from having its customers use the network and leave in place a major competitor that could crimp its pricing.

Comment.
Every day more nails appear in that expensive NBN coffin of Senator Conroys. Even the Telco analysts seem now to be deserting the corridors of Spin Central (aka NBN Co) for a look at the real world.

Wont go down well on that big Health Cruise ship, busy trimming and pruning funds from other Cruisers for full steam ahead.
'Whats that blundering NBN thing doing? Get it outa my way; Sink it!'

And the latest from a Morgan Stanley political analyst -

In the eight most Marginal Seats, only a 1.4 % Swing is required for a change of Govt, and theres a heck of a lot of Telstra shareholders in some of these Seats

Oooh..er Better trim those shorts.