National Broadband Network: Demystified

This is something I have just whirlpool.net.au:

I figured its best to start off by finding out how much a ‘last generation’ broadband network cost to build:

Neighborhood Cable (now a subsidiary of TransACT) built a HFC network in Geelong, passing 50,000 homes, during 2002-2003.

At most they spent $31 million building the network, according to an ASX statements and annual reports during 2003.
(As of 31 Dec 04 their networks in Mildura, Ballarat and Geelong passing ~90,000 homes was valued at $47 million before they were bought out by their venture capital partners)

$40mil / 50,000 = $600 per ‘home’ passed.

This network is overhead-based. The active parts of the network (i.e node boxes) appear to be surplus Optus gear, which would reduce their costs.

They launched broadband services at $34.95 per month according to media releases at the time.

At most FTTH build costs $1000USD per home passed according to some statistics I aggregated last night. The real world numbers average around $800USD, which is ~$980AU. In particular, Verizon claims $700USD per home passed, and Embarq says FTTH build has reached parity with copper.
So, a monthly cost approaching $100AU does not seem too far off, but PON gear will no doubt fall in price further.. $60-70 is more likely.
This is just the cost to build the network

According to the BoS there are 7.4 million households in Australia, I am going to round this number way up to 10 for futureproofing and to help account some variation (i.e putting in place backhaul and underground works if demanded by NIMBYs)

BUILD COST OF NBN: 10 million * 980 = $9,800,000,000 (9 billion 800 million)

Verizon is said to have costed the FiOS rollout at $23 billion USD(source) to do at least 19 million homes.

In conclusion: The physical aspect of an NBN network is no where near $43billion. We already knew that, but some refuse to believe.

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