Why is Australia paying so much for the NBN?
AUSTRALIA is now paying almost $300 billion for the national broadband network, according to a new study.
The figure is an increase of about $100 billion on last year’s report.
The research, by the Commonwealth Bank, also showed the price of a home in the metropolitan region of Sydney is up $20,000 from last year.
The median price of home ownership in the Sydney region was $1.25 million.
The average house price in the regional capital of Melbourne is $1,838,000.
In a commentary on the report, the bank said the NBN was a cost-effective and cost-efficient national investment.
“The NBN delivers the most cost-effectively and cost efficiently for the Commonwealth as a whole,” it said.
“This is the first time the Commonwealth has published the results of a cost and benefit analysis of the national infrastructure investment.”
The bank’s analysis also found that the NBN delivered “a very substantial benefit” to the regional economy and that there was “very strong evidence that it can be a catalyst for economic growth”.
“It provides a critical lifeline to the country’s regional economies,” the bank’s research chief, Robert McNeill, said in a statement.
“It will also deliver significant benefits to Australians living in remote and remote-off-reserve communities.”
We believe that NBN delivers a significant and lasting benefit to Australia’s economy.
“The report found the NBN would be cost-neutral for the average household, given the cost of the project, its network and its associated benefits, compared with the existing copper network.”
By 2050, the Commonwealth will be able to cover the cost for the project at about 30 per cent,” it wrote.”
That’s the equivalent of $5,000 per person per year for each household, equivalent to $15 billion a year.
“But it is the network, which will deliver the most benefits to all Australians.”NBN Co says the national network will deliver a “compelling national advantage”The report said the costs of the NBN were “relatively low”, compared with other types of infrastructure, like roads and public transport.
“There is strong evidence the NBN is cost-competitive with other alternatives for the most of its expected life, and that the costs will remain low over time,” the report said.
“The NBN’s benefits are not just to Australians but to other stakeholders in the economy.”NICTS’ chief executive, Andrew Colvin, said it was important to note the cost-benefit analysis was done for the general public.
“Cost-benefit analyses should be used to evaluate a large, complex and rapidly growing investment,” he said.
But he said the findings were not yet conclusive.
“At this stage we don’t have definitive evidence on the benefits and costs of NBN to the national economy, and there is no evidence of the benefits of the rollout outweighing the costs,” he wrote.
Topics:federal-government,nsw,internet-technology,internetworking,internet,business-economics-and-finance,technology,australia,nations-elections,technology-and_arts-and/or-futures,federal—state-issues,internet_communication,technology_policy,nbr,sydney-2000,melbourne-3000,vicSource: The Australian Financial Report (Originally published on July 8, 2018)