Is the NBN business model fatally flawed?

A business model in which the financial future of NBN Co relies on traditional telecoms income is unsound and the real economic benefits of the NBN are not being taken into account.

NBN Co’s 2012 annual report has once again highlighted the issues that I have been alluding to since the very first NBN plans were announced between 2007 and 2009. The report highlights the peculiar financial situation of NBN Co, especially in relation to the uncertainty of costs and early uptakes of the service. Analysts have continuously warned of significant budget blowouts.

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