Turnbull sceptical over latest NBN Co figures
NBN Co claims it has started or completed connecting nearly 1.2 million premises as at 30 June, a figure disputed by Mr Turnbull.
"A casual observer might assume this figure just includes premises able to connect to the [network], plus those where physical construction is under way," he said. "In fact, construction commenced also includes premises where high-level design work has been performed but actual physical build work ... has yet to commence."
Mr Turnbull also questioned NBN Co's claim it had "passed" (able to obtain service if wanted) about 200,000 premises since the government-owned telecom monopoly started construction. He said more than a third of premises counted by NBN Co as "services ready" could not be connected.
He said NBN Co needed to be more transparent and he was committed to increasing the frequency and volume of information.
Former NBN Co chairwoman Siobhan McKenna said the company made considerable progress this year and the uptake rate of service was high. She said nearly 35 per cent of people in connected areas took up services.
Ms McKenna resigned after the Coalition election victory and was replaced by Ziggy Switkowski.
NBN Co has suffered repeated delays in rolling out its fibre network but says it has met its revised construction target of "passing" 190,000 to 220,000 premises, a figure that is disputed.
The company lost nearly $1 billion due the high cost of building the network. Wages accounted for nearly 50 per cent of the loss.
NBN Co increased its capital expenditure considerably in the past year, from $1.1 billion last year to $1.8 billion this year.
Nearly a third of last year's capital expenditure was on wireless and satellite, which only accounted for 7 per cent of NBN Co's total covered area.
The government is conducting a strategic review of NBN Co, which includes an analysis of the progress and cost of the roll-out.
Frequently Asked Questions about this Article…
Malcolm Turnbull is skeptical about the NBN Co figures because he believes the annual report does not provide a meaningful indicator of progress. He questions the accuracy of the reported number of premises connected or under construction, as it includes premises where only high-level design work has been done without actual physical construction.
NBN Co claims that it has started or completed connecting nearly 1.2 million premises as of June 30. However, this figure is disputed by Malcolm Turnbull, who argues that it includes premises where only design work has been done, not actual construction.
Malcolm Turnbull is concerned that more than a third of the premises counted by NBN Co as 'services ready' cannot actually be connected. He emphasizes the need for more transparency in reporting these figures.
NBN Co has significantly increased its capital expenditure, rising from $1.1 billion last year to $1.8 billion this year. This increase is part of their efforts to expand the network, despite facing financial losses.
Nearly a third of last year's capital expenditure was spent on wireless and satellite, which only accounts for 7% of NBN Co's total covered area. This highlights the high cost of these technologies relative to the area they cover.
NBN Co has faced repeated delays in rolling out its fibre network but claims to have met its revised construction target of 'passing' 190,000 to 220,000 premises. However, this figure is disputed, and the company continues to work on expanding its network.
NBN Co is facing significant financial challenges, having lost nearly $1 billion due to the high cost of building the network. A substantial portion of this loss, nearly 50%, is attributed to wages.
Following the Coalition election victory, former NBN Co chairwoman Siobhan McKenna resigned and was replaced by Ziggy Switkowski. This change in leadership comes amid ongoing scrutiny and strategic reviews of the company's progress and costs.
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