More of the same. 
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[quote=âDrop_Bear, post:122, topic:15658â]
Classic.
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Whether itâs sold or not, I doubt theyâll ever stop hoovering up public monies.
If it isnât privatised, then at least the assets bought with those public funds will remain under public control.
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The alternative universe they live in is alive and functional. We mushrooms can believe it or not, but that will not change their disdain for coming clean with us.
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I thought the the operational losses were being funded from the NBN Capital budget/ clarification as follows?
(Edit note: Capital Budget, as in the Total Budgeted Funds allocated to the project by the Govt directly and through permitted borrowings. My bad in confusing the usage. In new projects operational losses are often funded from drawdowns from the parent.)
True, there was approval from the Minister responsible, to borrow some extra funds from the private sector. Looks like it is all gone!
It is amazing the NBN Co is on budget if the operational losses are as stated, greater than planned. 
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There is capex and opex.
Capex is on budget, opex is running a deficit.
For large organisations, having a combined one is a recipe for failure.
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Having a flawed product with a flawed business plan is also a recipe for failure. That is unless government redefines success to include failure 
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But the âmulti-technology mixâ was such a good idea!
Does anybody seriously believe that they didnât know all along?
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If we are talking about the same mob, they might not have. They have not shown any inclination for maths, planning, technology, nor much of anything else excepting routing dollars to (and sometimes from) âapproved recipientsâ legally or questionably. They have excelled at secrecy, but. Did I miss something else last decade?
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Maybe they lived a different decade? An alternative reality?
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Itâs almost as if the author had never heard of start-up costs. What quality of politician is it who cannot understand basic business principles?
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Corkage? 
Aka
Staffing,
Corporate and Legals,
Office accommodation,
Design,
Specification and Tendering,
Contract Establishment,
Procurement,
âŚ
I guess that is why they need an office manager for their local members office?
A major NBN upfront expenditure item has been the approx 60,000km Transit Network. Without this there is no value in running fibre or any type of NBN connected service out to a customer (premises).
It seems more than a slight of hand to suggest the first 50,000 connected premises cost $6B to connect.
Note:
The NBN Co reports a current net asset value of $35.5B.
Up to the 2017 Financial Report the NBN Co funded the accumulated Operating Expense losses from the initial Australian Govt $29.5B investment. Taxpayers Capital by any other definition.
Since then the NBN has been funding itâs capital and operating expenditure from a $19.5B loan from the Govt ((taxpayer). A significant portion of this loan has been drawn down to provide for the operational losses. The NBN Co is also paying interest on the loan back to the Govt at a concessional rate of just 3.96%.
(Marginally better than the pension deeming rate 3.25% current at the time the loan was negotiated.)
The NBNCo is loosing money. Effectively repayments of the interest on the loan is also coming from the loan.
The Current Financial Plan (FY20) for the NBN requires debt funding up until 2023.
Concurrently the forecast Capital expenditure falls to $1.4B annually. About the level required to sustain the existing investment short term. Insufficient to fund any upgrades and improvements to services? Any greater level of detail is not provided in the public reporting.
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The NBN Co also reports a loss on income this year in a slim (read with sarcasm here) couple of billion dollars. It is over the Rudd Plan budget in cost of implementation, will cost Billions more to finish it, wonât be finished in June 2020 (unless you take their very sad reasoning/response for saying finished). It will have the Copper repair cost like a Millstone for years to come, wonât be fit for purpose, will be holding back not just innovation but even everyday things, will be the reason we continue to fall in rankingsâŚthe list feels almost endless in a litany of woe.
Thank you @postulative for that pickup, I have corrected it.
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Millstone?
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If it wonât reveal how profitable each component of the business is, then can NBN⢠be trusted to maintain the whole if privatised?
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With the insanity that prevails in this country, China will probably buy it
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No that is ascribing insanity to the Chinese.
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Perhaps a much broader question than the iTnews report canvases?
The issue of trust seems two fold. Firstly it might go to any conditions of sale attached by the Federal Government. Secondly trust that current legislation and any future changes by Government ensure delivery outcomes acceptable to all Australians.
Aside from those concerns, trusting the future owner of the NBN would seem to be no different than the trust we place in any corporation, private or publicly listed, Australian or foreign owned?
Of course to maintain the services any such company has keys to the homes of nearly every Australian connected premise and some knowledge of all those it passes. A highly trustworthy and responsible service provider might be important. Who is more trustworthy in this instance? Given the recent track record of government and corporations, a photo finish. 
As iTnews is saying is seems incredulous that the NBN Co and itâs shareholder do not have knowledge of the different cost components of operating and maintaining the NBN. The annual reports of the NBN Co are already attributing the Average Cost per connected premise, separated from other core costs of establishing the NBN.
Any future private owner would be keen to ensure they had this detail to the last dollar before committing to any purchase. Or as the owner to the last cent to ensure control of all costs and profit. When you have potentially 8 million customers multiplied by even one cent, it soon adds up.
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No its not, its ascribing it to the people who canât see anything wrong with selling out to them
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It could be a sinister plot to hobble the Chinese! Sell it to them; they will quickly discover it is a white elephant and either write it off or sell it back at a discount. If they persevere the proceeds could be (but probably wouldnât be without a significant âintelligence upâ in certain halls of government) used towards doing it right the second time around.
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