[AusNOG] Screw the NBN, says TPG: We'll do our own FTTB

[Paul Wallace]

Sounds like free money!!

Probably not ... the capital will have to be repaid at some point & the interest as well in the meantime

:-(




-----Original Message-----
From: AusNOG [mailto:ausnog-bounces at lists.ausnog.net] On Behalf Of Paul Brooks
Sent: Tuesday, September 17, 2013 9:27 PM
To: ausnog at lists.ausnog.net
Subject: Re: [AusNOG] Screw the NBN, says TPG: We'll do our own FTTB

On 17/09/2013 8:57 PM, Robert Hudson wrote:
>
> Take a look at the inequality of access to decent telecommunications 
> infrastructure provided by an organisation who are legally obligated 
> to provide fair access for all (and still fail miserably to do so).
>

This is probably taking it a bit too far Rob - they are legally obligated to provide a working voice telephone service to almost everywhere. And we are all legally obligated to subsidise them for the costs to service uneconomic areas through the USO - they get paid to do the uneconomic bits, they are not a charity.
Fairness has never been a criteria, or a goal.

> And again - the NBN does *not* cost us (the nation) $37b. Or even $90b 
> if you choose to believe Turnbull's build costs. It costs us the 
> interest on those amounts, but only until the loans are paid 
> back/bonds mature (and the rates are stupidly low)- and then the 
> country owns a modern, high tech infrastructure that will drive the nation forward.
>

This is one argument for "why now", whether or not you believe government or private interests should do something. If you're ever going to do something big and bold (like a national NBN, or a major subsea cable), the right time is when interest rates are stupidly low and debt is cheap to service - and not expected to raise significantly until you can pay it back. You certainly wouldn't take on that much debt when global interest rates were 10-15% like they were in the 1980s. (see http://www.ritholtz.com/blog/2012/01/222-years-of-long-term-interest-rates/).

P.

_______________________________________________
AusNOG mailing list
AusNOG at lists.ausnog.net
http://lists.ausnog.net/mailman/listinfo/ausnog