The National Broadband Network will cost $35.7 billion and not the $43b previously quoted, according to the Prime Minister, Julia Gillard, and NBN Co’s business case.
“The total capital expenditure is $35.7 billion, that is obviously less than the capital expenditure previously publicly released,” she said. “That difference is overwhelmingly explained by the agreement with Telstra and the ability therefore to get access to Telstra infrastructure for the rollout so this is very significant information.”
The announcement was made in Canberra during a press event in which the Prime Minister announced a 36-page summary of NBN Co’s business case would be released prior to a vote on Telstra’s structural separation.
“The document goes to the timeline of the sorts of products that people will be able to get through the National Broadband Network,” she added. “The document confirms that under all sensitivity assumptions and all assumptions about the points of interconnect decision that the rate of return is in excess of the Government bond rate.
“The project is financially viable.”