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Turnbull: Financially sound business plan will not guarantee NBN success

Turnbull: Financially sound business plan will not guarantee NBN success

The Shadow Communications Minister hinted that regardless of whether the full NBN business case can financially justify the $35.7 billion network is irrelevant to its eventual success.

Malcolm Turnbull opens Vocus' new Sydney datacentre.

Malcolm Turnbull opens Vocus' new Sydney datacentre.

Shadow Communications Minister, Malcolm Turnbull, has suggested he will not support the National Broadband Network (NBN) regardless of what the full business case documents entail.

Under mounting pressure from Independent senators in parliament, the Federal Government released a condensed NBN business case last month which entailed select financial details on the network.

The full NBN business case is expected to be released this week.

Speaking at the launch of Vocus’ new datacentre facility, Turnbull said he expects the document to be “short of all relevant financial details”.

Drawing on his experience in the private business sector, Turnbull hinted that regardless of whether the full NBN business case can financially justify the $35.7 billion network is irrelevant to its eventual success.

“Just because [a company] can produce a business plan with good numbers doesn’t guarantee success,” he said. “There is not one bankrupt business – not one – that didn’t start off with a fabulous business plan.

“They couldn’t have received the credit if they didn’t have the business plan to suck in investors and lenders to then go broke.”

Turnbull’s alternative to the NBN is to separate the customer access network from Telstra and to establish it as a standalone regulated utility. It will have a guarantee of pricing to ensure a good return. Regional areas blackspot broadband network build-outs will be subsidised.

He estimates the price tag of his plan will be no more than several billion dollars.


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Tags Malcolm Turnbullnational broadband networkbusiness caseNBN

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