NBN ‘unlikely’ to deliver promised reach or speed: IBRS

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NBN ‘unlikely’ to deliver promised reach or speed: IBRS

Analyst firm IBRS has criticised the Federal government over the National Broadband Network process, claiming it could ‘have been better managed’ and is unlikely to deliver what it promised.

One of its analysts, Guy Cranswick, said in a statement: “It is unlikely that the actual network will actually deliver what was promised, in reach or speed.

“That is a problem that could have been dealt with by stronger policy planning at the outset.

“Similarly the bidding process could have been managed better,” he said.

Cranswick said there was a ‘reasonably competitive field’ in line for the project but that ‘some bids are more competitive than others in terms of the bidders’ experience and financial capability’.

“The projects’ total cost and potential financial return will be a key aspect to watch over the next four months as economic conditions continue to deteriorate,” continued Cranswick.

The issue of Telstra’s non-compliant bid will also be an ‘intriguing’ aspect of the process to follow; that is, whether it will affect the final choice, Cranswick added.

On that topic, David Forman, executive director of the Competitive Carriers Coalition has weighed into the debate.

“Telstra wants to pretend it is engaging in the process, while continuing to hide the details of its bid. It has been trying to hide this information for three years, and will use any excuse to continue to do so,” he said.

“The truth is that for three years Telstra has tried to force successive Governments to do a secret deal, but its terms have been so unacceptable that no one could responsibly agree.

“The responsibility of the Government and the entire Parliament now is to defend the interests of other bidders who have acted in good faith and within the rules by putting forward serious bids,” Forman said.
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