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10 facts you should know about NBN

Local Federal MP Luke Hartsuyker is keen for his constituents to hear the 10 facts about the NBN that he believes the Gillard Government doesn't want you to know about.
Local Federal MP Luke Hartsuyker is keen for his constituents to hear the 10 facts about the NBN that he believes the Gillard Government doesn't want you to know about.

HAVING been challenged on his stance on the National Broadband Network, local Federal member Luke Hartsuyker has released 10 facts about the NBN that he believes independent MP Rob Oakeshott doesn't want you to know about.

Mr Hartsuyker said that the latest update on Federal Labor's National Broadband Network shows Rob Oakeshott is supporting a broadband plan that is falling apart at the seams.

"The recent appearance of NBN Co CEO Michael Quigley at Senate Estimates plus the recent Government Budget confirms how the $50 billion NBN will be Labor's biggest policy debacle," Mr Hartsuyker said.

"The fibre to the home pipedream will waste tens of billions of taxpayer's dollars and duplicate existing services.

 "The Gillard Government has been responsible for billions of dollars in waste and mismanagement, but Rob Oakeshott is ensuring future generations are going to pay a high price for Labor's NBN.

"The cost of the NBN will be like the pink batts and the BER programs on steroids."

Mr Hartsuyker listed 10 facts about the Labor's broadband mess.

Rollout of NBN fibre is way behind schedule 

The NBN corporate plan states 1,269,000 premises will be passed by fibre by June 2013.

Based on Mr Quigley's update at Senate Estimates, only 336,000 homes and businesses will be passed by June 2013.

This does not mean 336,000 premises have signed up to the NBN.

The NBN also has many fewer customers than predicted

After five years of Labor broadband promises, only 0.1% of Australians are using the NBN.

The NBN 2011-2013 Corporate Plan forecast the fibre network would have 137,000 customers by the end of June. 

Mr Quigley told Senate Estimates the NBN had only 11,000 active customers. 

7,300 of these were on NBN interim satellite service. 3700 were connected to NBN fibre, and a handful using its fixed wireless service.

Therefore, after five years only or 0.1 per cent of around 10.9 million residential and commercial addresses in Australia are connected to the NBN.

Mr Oakeshott says this is a game changer, but at the first release sites in Tasmania, NBN Co is on average signing just two premises per week.

NBN spending on fibre advertising is 33 times larger than fibre revenues

In April 2012 the NBN spent $33 on advertising for every $1 it earned from fibre customers

The NBN's total advertising spend in 2011-12 was $8.1 million.

Mr Quigley told the Senate NBN Co's monthly revenue per user was $29.55.  This means NBN Co collected $110,000 from 3700 fibre customers last month - but spent 33 times that advertising its fibre rollout. 

Including all NBN customers, the April advertising spend was a mere 11 times total revenues.

Satellite cost blowouts

NBN Co is spending $2 billion to deliver satellite services, including the purchase of two satellites.

According the satellite industry the same service would be delivered using existing commercials providers for less than 10 per cent of the cost.

Greenfields housing residents are still waiting for a connection

NBN took over responsibility for new developments in January 2011 and has failed to deliver.

But as of mid-May 2012 NBN Co had activated just 300 customers in greenfields areas using its fibre network. 

In calendar 2011 Telstra connected 35,000 premises using copper.

NBN's rollout plan is pork barrelling

The NBN will rollout fibre to almost 2 Labor households per Coalition household by mid 2013.

The NBN three-year rollout plan shows 59 per cent of suburbs where construction will begin in 2012-13 are in Labor electorates, and only 35 per cent in Coalition electorates.   In NSW and Victoria, the lopsidedness is even more stark - Labor suburbs get 82 per cent of the rollout.

The Coalition does not believe broadband spending should favour either Labor or Liberal seats - it should prioritize areas that are most in need.

Excuses for delays don't stack up

Mr Quigley claims that finalising the Telstra deal held up the NBN rollout:

But NBN have had access to Telstra's infrastructure for almost a year.  Telstra has confirmed interim arrangements were put in place to enable NBN Co to obtain immediate access to Telstra infrastructure before the other Definitive Agreements become binding

Revenue per user less than expected

Users are paying less to be on the NBN than was expected.

At Senate Estimates on 24 May Mr Quigley said: "I can tell you that as of the end of March the average revenue per user was $29.55".

In the Corporate Plan, NBN modelled two scenarios where average revenue per user was $33 and $34 respectively by 2012-13. 

By 2021 projected average revenue per user (ARPU) will be about $60, twice as much as today.

A waste of money

Once NBN Co purchases Telstra and Optus' customers the NBN will cost at least $50 billion.

The Coalition believes that $50 billion could used to duplicate the Pacific Highway, provide super fast broadband and still leave change left over.

No transparency

The Labor/Green/Independent alliance has conspired to ensure the NBN is not audited by the Auditor General. The alliance has also legislated that NBN Co be exempt from Freedom of Information laws.

"These are the facts that Rob Oakeshott doesn't want you to know about the NBN. As Chair of the Committee on the National Broadband Network, Mr Oakeshott has refused to ensure that this $50 billion pipedream was subjected to a cost-benefit analysis.

"Mr Oakeshott is ignoring his constituents by supporting a carbon tax and he is complicit in Labor's waste and mismanagement of the NBN. "

Topics:  luke hartsuyker nbn rob oakeshott



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