Report shows little cost benefit from national broadband network

02 Sep, 2009 03:29 PM
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The Rudd government's national broadband network failed a sophisticated cost benefit analysis, with the available supply of broadband already exceeding demand, economic consultants Henry Ergas and Alex Robson said.

According to The Australian Financial Review, Mr Ergas and Dr Robson, of Sydney-based consultancy Concept Economics, privately subjected the broadband project to a cost benefit analysis and presented the results to a conference of public servants, academics and private sector economists hosted in Canberra by the Productivity Commission last month.

The cost benefit analysis of the proposed broadband network follows the government's refusal to conduct its own study.

However, they argue, the broadband availability appears to greatly exceed demand for households and businesses.

The Australian Financial ReviewSource: http://www.afr.com
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READER COMMENTS

Trugger
2/09/2009 7:00:38 PM

Mr Ergas and Dr Robson, please explain why I can only get a quasi broadband through satellite, when I live less than 30 kilometres from a major provincial city in Queensland. Typically, these city-based experts don't take us into account. We need a fast broadband that is not controlled by Telstra. It is bad enough that we have to use Telstra for our mobiles because we can't get reception from any other network. Don't insult our intelligence with "findings" like this.

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