There are two comments in the report that may interest others.
Firstly Ziggy Switkowsksi is talking up the potential sale price of the NBN to the $50B mark. This depends on how and when the sale is conducted. It was also suggested there are various options for splitting up the asset. These have not been determined.
Secondly Mitch Fifield (Fed Minister for Communications) has suggested that discussion of the sale of the NBN is premature.
“The valuation of NBN Co is not a government decision,” Fifield added.
Spoken like a seasoned pollie!
He may have said instead?
What might have an impact on the valuation are:
the timing of the sale,
how the sale is conducted,
any separation or breakout of the assets,
changes to government regulation of services,
and indeed the policy decisions driving the NBN deliverables.
Nothing to do with government! Really?
It’s worth considering the current government if re-elected has always stated the NBN will be sold off. There is no need for a new LNP “mandate” to be negotiated at the next federal election. Equally the opposition ALP has not withdrawn from it’s original position of also selling off the NBN. It is yet to take a position other than in the fence perhaps?
What is not being discussed by either power in Canberra is retention of public ownership of the NBN.
And neither are suggesting there will be a public float of any of the NBN if it is sold off!
.
P.S. there are enough hints though the Satellite and Fixed Wireless services remain candidates for separation.
Such a move would likely:
Enable dropping the commitment to provide a minimum 25Mbps service to all FW customers per the original LNP NBN commitment. Note that this commitment in various forms did not include the word “peak”?
Enable the service operator to increase charges for these services independently of the other 90% of Australians with the NBN.
Increase the value of the other 90% of the NBN through removing the need to cross subsidise the FW and satellite services. Yes, the current government has said this will not happen. It was the government that said this though!
Isolate to the 10% of Australians, the ongoing high costs of continually upgrading the expensive technology used by FW and satellite as needs driven demand increases. The performance of both the satellite and FW internet services have many signs of being at capacity. They are also far from fully subscribed, making future upgrade needs even more pressing?