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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