PRICES TO SOAR UNDER LABOR'S BROADBAND PLAN
The Member for Berowra, Philip Ruddock MP said today that industry predictions that consumers will have to pay more than $200 a month to use Labor's proposed National Broadband Network have now been supported by analysis conducted by a highly-regarded economist and this will affect constituents.
“It is accepted that average retail prices of around $215 a month would need to be charged across the network if the project was to be viable. This is based on an eventual network take-up rate of 80 per cent of all broadband customers and constituents have a right to be concerned,” Mr Ruddock said.
“The reality is, whatever way the Government tries to spin it, based on the available information, broadband users will have to pay considerably more to use Labor's network,” Philip Ruddock said.
“Its conclusions reflect predictions by Paul Broad the CEO of Australia's third largest telco AAPT that customers would need to pay at least $200 a month for the project to be viable. Prices of $200 or more per month are about four times what average broadband users pay today.
“This proposal is starting from a base of heavy debt and deficit and the Government has no idea what level of private investment it will attract or how many broadband users may choose to use the proposed network.
“It would fail any credible cost benefit analysis and is supposedly being subjected to a lengthy Government implementation study, which is probably just a tactic to get Labor through the next election. The onus is squarely on the Government to produce some further detail about this risky, grandiose, yet vague proposal,” Mr Ruddock said.