http://www.jasonclare.com.au/media/portfolio-releases/1941-even-nbn-co-ceo-think...NBN Co Chief Executive Officer Bill Morrow has undermined the credibility of Malcolm's mates' cost benefit analysis questioning the dodgy assumptions that underpin it.
In a crushing blow to the credibility of the report written by former Malcolm Turnbull staff and some of Australia's biggest critics of the NBN, Bill Morrow has questioned the key assumption that Australian households will require only 15 megabits per second in 2023.
On Radio National yesterday Bill Morrow said:
"I suspect...when they talk about 15 megabits per second being sufficient for people today, I think that that likely is taking a snapshot in today's environment. What will tomorrow be, what will next year and the next decade require, I think is really the question."
"I think we need to ask the panel how they came up with the 15mbps."
NBN CO CEO BILL MORROW, RADIO NATIONAL, FRIDAY 29 AUGUST 2014
Bill Morrow also said that 15mbps is already "insufficient" to meet his family's needs:
"For me, Sheryl, as an example, I have a 21 year old and a nineteen year old, so two uni students in my house, I have an 11 year old and a seven year old and two adults that are active on the internet, and I don't think that would be enough for us, and not because it's a speed issue but because we're sharing that, so if we are all active in a video intensive area, then that clearly is going to be insufficient to meet our particular needs."
NBN CO CEO BILL MORROW, RADIO NATIONAL, FRIDAY 29 AUGUST 2014
Malcolm's mates' report is so flawed that even the CEO of NBN Co is questioning it.
No wonder. Already more than half the people on the NBN are ordering 25 Mbps or more.
The report also says that by 2023 only 5 per cent of households will need 43Mbps. However, already 28 per cent of people on the NBN are ordering 50Mbps or more.
The results of a cost benefit analysis depend on the assumptions you put in it. If the assumptions are wrong the conclusions will be wrong.
The fact that even Bill Morrow, the man in charge of building the NBN, is questioning the assumptions in this report completely undermines the credibility of Malcolm's mates' report.
Next week is the 1st Anniversary of the election of the Abbott Government. In that time all we have seen on the NBN is broken promises and delays, and dodgy reports to justify their second rate broadband network.
The real tragedy is because the government has been so focused on these dodgy reports, the NBN is now rolling out slower today than it was this time last year.