Monday, 04 February 2019 05:11

Labor again hints at NBN write-down if it is elected Featured

By
Michelle Rowland: "A write-down needs a trigger and it is not a decision for governments to make, but the possibility of that happening looks more likely." Michelle Rowland: "A write-down needs a trigger and it is not a decision for governments to make, but the possibility of that happening looks more likely." Supplied

The Australian Labor Party has again hinted that it would look at a write-down of the value of the national broadband network if elected, a move that would bring down connection prices and help retail service providers.

Labor Shadow Communications Minister Michelle Rowland said in an interview with the Australian Financial Review that Labor would work to repair the economic issues facing the NBN and give users better connectivity.

Rowland had raised the idea of a write-down in October last year too, saying that the NBN Co, the company that is rolling out the NBN, would not be able to meet the average revenue per user forecast for 2012-22.

Were a write-down to occur, then the NBN Co would be able to lower its costs and allow retail service providers to buy more capacity, which would then allow the RSPs to offer higher-speed packages.

Both Rowland and Labor Shadow Finance Minister Jim Chalmers have been recently contesting claims made by NBN Co chairman Ziggy Switkowksi to Senate estimates, that the network would fetch a price of $50 billion once it was fully rolled out.

The two Labor officials said there was no evidence to back up this claim, adding that the NBN Co had confirmed it had "not received advice from any advisory firm, investment bank, market analyst, or suitably qualified professional, to support the chairman's claims".

In Monday's interview, Rowland said that a write-down would have to be initiated by NBN Co, the company rolling out the network.

"There are some really tough choices on the technology and economics of the NBN and it presents a very challenging financial circumstance for the next government, whoever that may be," Rowland said.

"A write-down needs a trigger and it is not a decision for governments to make, but the possibility of that happening looks more likely.

"For a write-down to occur there has to be some change in pricing or the accounting rules need to be undertaken in a particular way. It is typically done by NBN Co."

During the announcement of its annual results for 2017-18, NBN Co said it was predicting a total outlay of $51 billion on the NBN, the biggest project undertaken by the government.

The figure has risen steadily from the $29 billion that the Coalition Government said it would spend on the network when it took office in 2013.


Please join our community here and become a VIP.

Subscribe to ITWIRE UPDATE Newsletter here
JOIN our iTWireTV our YouTube Community here
BACK TO LATEST NEWS here

PROMOTE YOUR WEBINAR ON ITWIRE

It's all about Webinars.

Marketing budgets are now focused on Webinars combined with Lead Generation.

If you wish to promote a Webinar we recommend at least a 3 to 4 week campaign prior to your event.

The iTWire campaign will include extensive adverts on our News Site itwire.com and prominent Newsletter promotion https://itwire.com/itwire-update.html and Promotional News & Editorial. Plus a video interview of the key speaker on iTWire TV https://www.youtube.com/c/iTWireTV/videos which will be used in Promotional Posts on the iTWire Home Page.

Now we are coming out of Lockdown iTWire will be focussed to assisting with your webinatrs and campaigns and assassistance via part payments and extended terms, a Webinar Business Booster Pack and other supportive programs. We can also create your adverts and written content plus coordinate your video interview.

We look forward to discussing your campaign goals with you. Please click the button below.

MORE INFO HERE!

INTRODUCING ITWIRE TV

iTWire TV offers a unique value to the Tech Sector by providing a range of video interviews, news, views and reviews, and also provides the opportunity for vendors to promote your company and your marketing messages.

We work with you to develop the message and conduct the interview or product review in a safe and collaborative way. Unlike other Tech YouTube channels, we create a story around your message and post that on the homepage of ITWire, linking to your message.

In addition, your interview post message can be displayed in up to 7 different post displays on our the iTWire.com site to drive traffic and readers to your video content and downloads. This can be a significant Lead Generation opportunity for your business.

We also provide 3 videos in one recording/sitting if you require so that you have a series of videos to promote to your customers. Your sales team can add your emails to sales collateral and to the footer of their sales and marketing emails.

See the latest in Tech News, Views, Interviews, Reviews, Product Promos and Events. Plus funny videos from our readers and customers.

SEE WHAT'S ON ITWIRE TV NOW!

BACK TO HOME PAGE
Sam Varghese

Sam Varghese has been writing for iTWire since 2006, a year after the site came into existence. For nearly a decade thereafter, he wrote mostly about free and open source software, based on his own use of this genre of software. Since May 2016, he has been writing across many areas of technology. He has been a journalist for nearly 40 years in India (Indian Express and Deccan Herald), the UAE (Khaleej Times) and Australia (Daily Commercial News (now defunct) and The Age). His personal blog is titled Irregular Expression.

Share News tips for the iTWire Journalists? Your tip will be anonymous

VENDOR NEWS