Pipe Networks founder Bevan Slattery today delivered a ringing slap in the face to Communications Minister Stephen Conroy, predicting most of the promises around his flagship National Broadband Network initiative would fall flat, with the project to end up being a liability to Australia’s taxpayers.
Slattery has a great deal of expertise in laying out the fibre infrastructure that will be at the heart of the NBN — with partner Steve Baxter he founded fibre player Pipe Networks in 2001 and built it into a major, predominantly wholesale player, before selling the company to ISP TPG last year.
He told the Communications Day Summit in Sydney today there was one major issue with why the project would fail — what he described as the fact that you couldn’t get a commercial return on investment for a project building a wholesale-only broadband network that would reach 90 percent of the population.
“I firmly believe you can’t get a commercial return on this infrastructure,” he said. “Don’t play cute, don’t spin, don’t bullshit.”
Slattery highlighted recent comments by NBN Co chief Mike Quigley that the NBN wouldn’t make a commercial return for 30 years — comments Quigley himself attempted to clarify in an earlier speech this morning.
“Trying to draw out a 30 year investment — that’s not a commercial return,” said Slattery, challenging the government to prove that it could make a better return from the NBN over the time period than it could by simply putting the $43 billion in the bank and collecting interest. This in turn meant the private sector would not invest in the project.
Slattery predicted many of the Government’s key promises about the NBN would not be met.
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http://www.itwire.com/it-industry-news/strategy/38414-pipe-founder-predicts-nbn-... He says he can smell bullshyte.