Forward to the past with the NBN

Although details are still sketchy, Hen­ry Ergas points out that in one of his last acts, Rudd appar­ent­ly sad­dled us with a return to a gov­ern­ment-sanc­tioned oli­gop­oly at the heart of our telecom­mu­ni­ca­tions mar­ket. Worse still, it will be tax­pay­er-fund­ed.

Cen­tral to those out­comes is the heads of agree­ment, which has two basic com­po­nents. A first, val­ued at some $5bn, is a pay­ment for NBN Co’s use of Tel­stra’s infra­struc­ture. Fair enough. Giv­en the deci­sion, how­ev­er ques­tion­able, to build the NBN, let it not dupli­cate facil­i­ties it could share. The remain­ing $6bn, how­ev­er, is deeply prob­lem­at­ic, for at its heart is an agree­ment to sup­press com­pe­ti­tion.” Extract from We’ll pay dear­ly for this NBN fol­ly | The Australian

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