MEDIA RELEASE - TURNBULL’S LATEST NBN STUFF UP - SATURDAY, 3 SEPTEMBER 2016

More evidence has emerged of Malcolm Turnbull’s utter mismanagement of his second-rate National Broadband Network.

The Australian Competition and Consumer Commission (ACCC) has assessed the $1.6 billion service delivery agreements entered into by NBNCo for the delivery of HFC services by Telstra and has raised serious competition concerns including:

 

  • giving Telstra early access to NBN-funded infrastructure and an advantage to fulfil demand for services earlier than competing service providers;
  • the potential for Telstra to give itself preferential treatment in service activation and fault handling; and
  • direct visibility by Telstra of network planning and construction could mean it has better access over its competitors to rollout information.

The release of the ACCC’s assessment reflects its concerns raised in April this year that the deal could give Telstra a head start over its rivals.  Yet since that time, Malcolm Turnbull and his replacement Minister have continued to spruik the benefits of HFC as a game-changer in the delivery of their second-rate NBN.

 

This latest stuff up by Malcolm Turnbull comes hot on the heels of his complete misjudgement of HFC forecasts.  The 2016 NBN Corporate Plan stated that the number of planned HFC connections was 4 million premises.  However according to the latest NBN Corporate Plan released last Friday, the number of planned HFC connections has collapsed to between 2.5 and 3.2 million premises - the difference to be replaced with slower fibre-to-the-node connections that rely on copper.

 

Malcolm Turnbull’s assumptions about HFC costs have also been proven as completely wrong.  According to the latest NBN Corporate Plan, the cost of installing HFC connections has blown out from an average of $1,800 per premise to $2,300:  a 27 per cent increase.  By stuffing up his costings, Malcolm Turnbull has forced up to 1.5 million planned connections off the HFC footprint, replaced by fibre-to-the-node and an increased reliance on an inferior and ageing copper network.

 

Leaked reports last year revealed the Optus HFC network to be in poor condition and not fit for purpose, prompting NBNCo to consider replacing it entirely. 

It’s no wonder that Malcolm Turnbull is so sensitive when it comes to the truth about HFC in his Multi-Technology Mess (MTM).

 

SATURDAY, 3 SEPTEMBER 2016