NBN cost blowout

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According to new peak funding cost estimates, the National Broadband Network (NBN) will need an additional $8 billion in funding over and above the initial projected cost of $41 billion.

Communications Minister Malcolm Turnbull said on Monday that the Government wouldn’t be directly providing any more money for the NBN, but that it was open to giving the project financial support by sharing its AAA credit rating to the NBN, or by directly raising debt for the project.

The original cost of implementing the Coalition’s NBN plan was projected at $41 billion, with a return on investment (ROI) of 5.3 per cent for the project. However, the new corporate plan estimates a cost of between $46 and $56 billion with a ‘base’ rate of $49 billion. The plan also predicts an ROI of just 3.5 per cent, a drop of 34 per cent on the original forecast.

According to new estimates, the NBN plan originally implemented under Labor would have cost between $74 billion and $84 billion and was to be completed between 2026-2028, six to eight years later than current NBN estimates

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Written by Drew

Starting out as a week of work experience in 2005 while studying his Bachelor of Business at Swinburne University, Drew has never left his post and has been with the company ever since, working on the websites digital needs. Drew has a passion for all things technology which is only rivalled for his love of all things sport (watching, not playing).
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66 Comments

Total Comments: 66
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    The Coalition are doing what they have always criticised Labor for. What an incompetent and hypocritical Government we have.

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      You have to wonder why you voted them in.

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      Come off it Jackie. Take your blinkers off the labour started the NBN fiasco

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      These words of your’s are so true Jackie and Polly I never voted them in so I don’t feel at all guilty about the way things have turnes around ! Dotty

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      Polly I never voted them in. I am not rich nor greedy.

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      Annamaria Labor never had a chance to start it because the brilliant Coalition lied they would do a better job. The Coalitition is infamous for being the Goverment of lies and incompetence.

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      What utter rubbish from this group of posters. Under the ALP plan it would have cost twice as much.

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      Its hard to believe that when anything goes badly wrong with LNP bad government and bad policy it always seems to be the fault of Labor. How does that work?????
      The ORIGINAL NBN was costed out and none of us knows if it would have blown out or not. Government projects nearly always do. But given the interference and downgrading of the original proposal I can only think that there may be some very happy middlemen who have cashed in.
      The current government needs to send its ministers back to business school rather than let them be the hand of business and destroy the nation further than it already has been by both sides with their short sighted and hypocritical policies.
      The NBN will be a wonderful project and I can but suggest that the knockers do not sign up and enjoy what the rest of us, including business, will reap.

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      Save the green Tree Snake ! OOW ! Sorry wrong Blog ! 🙂 Thats an Overdue Green Fibre Optic Cable ! 🙂

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      Rudd’s NBN “Pie in the Sky” scheme reflects once again his “back of a beer coaster” approach to planning. His projects to save us from the menace of the GFC (that was illusory because of the money pouring in to Australia from China for coal and iron ore exports is what did it.) quite simply was a lie. The home insulation scheme was cancelled due to the lack o government oversight into the conduct of the insulation installers that resulted in death and fires in roof cavities. The solar scheme was cancelled because too many people took it up and the funds allocated for the scheme ran out.

      The NBN was supposed to be for every resident of Australia when it was announced, as I recall. Then, when it was pointed out the cost of installing NBN connection to remote outback settlements was going to cost too much, the promised project started to be scaled back. So after the 2013 election, the LNP government was saddled with ALP spending promises (and over priced programs) that necessitated in increased overseas borrowing that is the Rudd Gillard legacy for the taxpayers of Australia, now and in the future, to pay off.

      So mick and his cronies applaud the wasteful deeds of “Santa Rudd and Julia Claus” for their largesse in blowing the money left in the treasury by Costello sinking the country into the debt mess Australia finds itself in. Is anyone really surprised that Tony and the LNP point the finger at the ALP?Green Axis for these acts of economic vandalism? It isn’t only mick. A view of the poll results showing Shorten’s lead over Abbott would suggest that mick is not alone in his delusion. :(>

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      Your rant continues to avoid the obvious fact that none of your family were thrown on the unemployment scrap heap after the GFC. Sure the pink batts scheme were not ideal but maybe you had a better suggestion for something which could be rolled out quickly. I thought so! The irony is that YOU try to blame government for problems which were the responsibility of employers.

      You are living in the land of make believe wally….but YOU will gladly use the NBN you are bemoaning once it is available. Hypocritical really.
      How about some scrutiny on the current government which butchered what had been costed and which had been well worked out. Remember the PROMISES from Turnbull about how much money his ‘changes’ were going to save. LIE…or should I say the next lie!
      Your posts are the typical troll post wally: always turning everything into a political attack on one side of politics with never a balanced view. You are what you are I guess. And before you roll into your next propaganda piece I remind you of what you already know: I DO NOT SUPPORT EITHER SIDE OF POLITICS. But I have made this clear before have I not? I am in no way a supporter of Shorten either. I think Shorten is a limp wrist leader and not what the nation needs. But the alternative is a dictatorship from a moron. What you gonna do?

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      Heard Di Natali on the radio yesterday and he sounded OK. As long as he is not another wolf in sheep’s clothing. But then there are a lot of wolves out there pretending to be sheep,

      I am also suspicious of Mr Turnbull, Many people think Turnbull should be in the Labor Party, but the fact is, due to his merchant banking background, the Labor/union heavies would not grant him pre selection in any red ribbon electorate. Just as the “Wolf of Wentworth” has proven to be something of a loose cannon in the Liberal Party, I’d think the Labor bosses are glad Turnbull is on the other side. Perhaps Turnbull has seen what effect Kevin Rudd’s “Loose Cannon Act” , (leaks and all), did to Labor after Shorten and Co got rid of him prior to the 2010 election. Considering Turnbull’s ouster by Abbott as a result of a Liberal party room spill, I think the comparison of Turnbull with Rudd is most apt. I do not think Turnbull likes playing Tonto to Abbott’s Lone Ranger any more than Rudd liked having that role when Gillard was made PM.

      So here you go, mick, defending the bumbling Kevin Rudd and his indecent haste to make himself appear as the saviour of working Australia. FYI, I was an aged pensioner at the time the GFC blew up in everyone’s faces. So I was not adversely affected as so many self funded retirees were, or those who found themselves out of work and were too old to be in the “employable demographic” thus rendered them unemployable.

      So you make excuses for Rudd, Gillard, Swan and the rest of their ilk for reckless overspending and going into obscene levels of debt to maintain the charade that Australia was all right in the safe hands of the Labor. government shows a bias that puts the lie to the impartiality you claim to espouse.

      Even worse is your inane bleating that we should revere them because they “meant well and their hearts were in the right place”, regardless of the amount of damage their half baked policies di to the Australian economy that our grandchildren are going to have to pay off with their taxes.. If any of the parents of the young men who were killed installing insulation during Rudd’s Pink batts scheme have forgiven Rudd and Labor for the loss of their sons, I would like to hear/read about it.

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      Its quite obvious wally. You are a LNP troll. Whilst readers have a leaning one way or the next your posts are so off the planet that it has to be clear.
      FYI I may be supporting Labor but ONLY because I find it offensive that some folk intentionally distort the facts.
      Turnbull is the best man a bad bad government has. A man with a brain. Something that most of the front bench puppets do not have.
      Rave on about pink batts and NBN terror. As I said you have all the qualities of a first class troll. Not winning wally!!

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      Hi mick. t seems you resort to unfounded accusations of “Trollism” and wind up falling into the “Trollism Trap” yourself. while failing to muster any facts to refute my above comments. That being the case, you can only resort to bluster accusations and allegations. That only reveals that you have lost the plot somewhere and have no valid arguments to support the case you are trying (and failing so dismally) to make.
      As far as Malcolm Turnbull is concerned, I do agree that he is more intelligent than the average politician. I think he towers over all of the pygmies that the Opposition has infesting front bench. But I also believe that ambition, hubris and ego are going to combine to bring Turnbull unstuck in the long run, as it did with one K. Rudd.

      Time, of course, will tell. The self defeating antics going on “behind the doors” of the Liberal Party and the opportunistic efforts to “get” Abbott by some of the back benchers who are frightened by the polls may just deliver a self fulfilling prophecy (through the appearance of party disunity) that could discredit their party in the eyes of enough voters and see them return Labor to government.

  2. 0
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    they are still trying to get it to work in caboolture more than 12 months after the cables were laid and our lib pollie boasting twice by letter box phamplet about it coming.About time they come clean and tell us the truth

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      Takes time to lay cables in the whole country. Not a small job. I am only sad that AT THE SAME TIME all cabling (power, etc.) could have been accommodated in the same trench. That way we could do away with poles and the huge cost of maintaining these. But this is Australia so I guess I should not expect common sense to prevail or politician to have the sense to bless themselves with.

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      Well Fredklaus, Sandstone Point, Ningi, Godwin Beach and Beachmere under the original rollout would have been running now. The last two day’s on Bribie, they are STILL working on the cabinets which is a waist of taxpayer money. June has come and gone but the Telstra staff have told me, Feb’ 16 will be Bribie and Cabooltures NEW rollout date which will include the areas mentioned so we SHOULD all be wetting our selves for this date. Just don’t hold your breath, it’s not worth it.

  3. 0
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    Another failed idea from labor that the coalition has to try and remedy it was never going to come in at the cost labor budgeted for, and some people still want a return to labor,go figure!

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      You seemed to have forgotten. The lip trashed the way that they were going to do it. Lip said they were going to do it cheaper. What’s happening now the costs getting higher because they underestimated or gave an cost that was much lower as to get into government. Before long it will probably reach the estimate that labor gave without the fibre to the home.

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      The original estimate for a full system from labor was 33 billion, they reassessed that estimate before they were kicked out of government, the coalition always said it was impossible to bring in the system that the labor government proposed at the cost that they had assessed, if the coalition hadn’t cut the system back to what it is now, who knows how much the cost would have blown out to. I have always believed that business would benefit from the NBN but I could never come to terms that every household needed to have a super fast internet that came at a cost we couldn’t afford or needed for our every day use.

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      All the Libs have managed to do is add about $30B to the cost of the end product, which will be FTTH for 93%. FTTN will be woefully inadequate so you need to add the cost of going from FTTN to FTTH to get the full cost to the taxpayer. By switching to FTTN and HFC, they have also added about two years to the rollout while they are figuring out how to do it. The FTTN rollout has not even started yet.

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      ozimarco, I am trying to work out if you are talking to yourself, or using an inter Galactic language.
      One thing about it is, if your are talking to your self you will always be right.

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      Dim by name and dim by comment. Anybody who has average intelligence would realise that fibre optic cable is needed for the future. If you think that nothing is going to change over the next 50 years then have a think about the last 50. Wow!
      As I keep saying data requirements have been doubling every year for the past 20 years. No end in sight. At that rate we will be putting 1 million times the data through we are currently doing. Copper has reached its end of life and we have a clear choice.
      As I said Dim your comment belongs in the dinosaur coral. Please do not sign up for the NBN. And lets change the topic from ‘everything is Labor’s fault’ to let’s fix the nation.
      So what has this government done???? Same as always. Nix other than try to shovel money into the bank accounts of those who have no real need of it and tax poor people. What else is new!

  4. 0
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    So more lies from the current Government – caught out again !

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      They are the Party that Governs lies. Watch how they line their pockets before they leave us with the biggest deficit in history.

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      A system that was unnecessary from the ALP. A Ferrari when most people would have been happy with a Holden. The first price from the ALP via Conroy and Rudd (on the back of a cigarette packet) was $4 million that went to $44 million, which nobody believed, then reality set in with estimates of $80 million.

      Never mind the facts, just seize on anything to trash the Libs. You people really need to take a lokk at yourselves and get a reality check.

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      What a lot of crap Sceptic. You either have no understanding or else you are being paid for this blatant political advertising.
      You avoid the facts….just like this government also avoids the truth. The Ferarri you mention is cabling into your house which Turnbull killed off with the pretext that there was going to be a huge cost saving. Please explain?
      Now we will all pay for the last piece of cabling to get the fibre optic cable to our computers, but business gets it to their business for free of course. Why does that not surprise me.
      The Libs need to be trashed when they stuff up the nation. Had they left the policy alone rather than butcher it one might think that the cost would not have blown out….but who would know until the fat lady has sung. Not Amanda…..
      Before you sing the songs of the worst government in history and bag the other side for having done something to help the nation going forward at least have a look at the facts.

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      I Googled it Mick ! 🙂 And it said…In The Fullness of Time ! 🙁
      And its.. PPA now ! Paid Political Advertisement !! 🙂 🙂

  5. 0
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    “… much lauded…” – by whom? Turnbull said his scheme was quicker and cheaper than Labor’s, but of course it is a much lesser beast than we were promised under Rudd/Gillard. Is there anyone who thinks that there won’t be more extra costs and long delays before the next election? Labor will have to try and fix Turnbull’s mess …

  6. 0
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    None of this rubbish worries me, why? Because I only have 10 minutes to 10 years left, and the NBN will take 100 years.

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      Given the current progress YOU ARE WRONG. Maybe in hick communities like far west Queensland but not major cities. Enjoy the smoke signals.

  7. 0
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    Trust this Federal Government to balse up another project. No indication of when Mawson Lakes SA 5095 will receive the NBN. Malcolm Turnbull is no better than the rest of those useless NCP MPs!!!!! Pity the poor people trying to educate their kids in rural areas.

  8. 0
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    sceptic , you are 100% correct with your figures . It was a Labor stuff up from the very beginning ,.

  9. 0
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    Looks like labor will have to Fix It next year !! 🙂 🙂 🙂

  10. 0
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    This whole thing has been a political football because the Libs used it to beat the ALP over the head, so Tony Abbott, but now the chickens are coming home to roost.
    We will get a sub-standard system that will have to be re-visited, sooner rather than later, to try to bring it up to International standards. That additional cost is not shown far but it will be there.
    This is what happens when you play politics with big thinking projects.

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