[AusNOG] News: Minister Conroy contemplating Government-Fundedundersea cable?

[Grahame Lynch]

Not sure I understand all these comments regarding the NBN as an investment
and not a debt.

The NBN is a government investment funded by debt. The government borrows
the money that is invested in the NBN. The interest on that debt will have
to be paid from consolidated revenue. The government gets its money back
only when it sells the NBN in the future and if it gets a price that
exceeds both the investment and the cost of servicing the interest on the
debt that funded that investment. The NBN privatisation is not a fait
accompli - the legislation provides for some parliamentary hurdles that, to
my mind, will be hard to achieve.

Now just to clarify the government hasn't invested very much in the NBN
yet. The peak spending years begin from next financial year. Much less than
10% of the entire amount required would have been expended to date.
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