OPINION: Investment bankers hoping for a multi-billion dollar privatisation of NBN Co will be disappointed with Michelle Rowland’s first major move as communications minister.
There is a lot to be learnt from reading between the lines of the latest missives fromto NBN Co and the Australian Competition and Consumer Commission.
That is a lot to take in when you consider that NBN and the industry have been engaged in almost two years of consultation over aThe privatisation imperative was rarely discussed publicly, but it could be seen in the way NBN ran its business, including pushing into commercial areas outside its original mandate., NBN wanted to boost wholesale broadband prices by inflation plus 3 per cent for some plans.More importantly, it wanted to abandon its 3.
This has led the Minister to conclude that NBN’s SAU “was underpinned by unrealistic revenue expectations, and reflected a view to privatisation”. In her letter to NBN Co, Rowland has raised the possibility of NBN writing down some or all of its historic sunk costs, which amount to about $38 billion.Advertisement
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