NBN roll out likely to cost AUD15 billion

14 Oct 2008

Australian IT is reporting that industry players appear to have reached a consensus on the estimated costs for the construction of Australia’s next-generation broadband network (NBN). Telstra chief executive Sol Trujillo is reported to have approximated costs for the infrastructure at approximately AUD15 billion (USD10.1 billion), stating, ‘We’re talking about a build that’s probably going to exceed AUD10 billion and could be as high as AUD15 billion in total, if all objectives were to be met.’ This contradicted previous estimates made by Telstra chairman Donald McGauchie in June 2008 that the roll out could cost as much as AUD25 billion. The new price is more in line with costs imagined by Telstra’s rival bidder for the NBN contract, the Terria Consortium, which has also approximated costs around the AUD15 billion mark. Despite the general agreement on the cost of the scheme, few details are likely to be revealed on the actual structure of the network, after Communication Minister Stephen Conroy issued a gag order on the bidding process; bids for the contract are due by 26 November.

Australia, Telstra (incl. Belong)