Joint Media Release

NBN Co Initiates Strategic Review

MC 3/13

Senator the Hon. Mathias Cormann
Minister for Finance

Hon. Malcolm Turnbull MP
Minister for Communications

3 October 2013

The Government has today asked the NBN Co to begin a strategic review into the progress and cost of the project.

This review will set out the true costs, in time and dollars, of the NBN Co project under previous Government’s policy settings.

This work will inform the NBN Co into how it can deliver the network sooner, cheaper for taxpayers and at less cost for consumers.

The terms of reference for the review will see it report on:

  • The progress and cost of the rollout and the NBN Co’s financial and operational status
  • The estimated time and cost to complete the NBN under a fibre to the premises model (ie, Government policy prior to 7 September 2013).
  • The estimated cost and time to complete the NBN if variations are made to the current plan such as increased use of fibre to the node in established (brownfield) areas.
  • The economic viability of the NBN Co under alternative strategies.
  • The implications of capital costs and principles of cost recovery for wholesale and consumer prices under existing and alternative strategies.
  • Recommendations for organization restructuring, any amendments to the construction model and a revised NBN Co strategy to achieve Government policy objectives.
  • Any other matters the Chair deemed relevant to the strategic consideration of NBN Co’s present situation and future prospects.

The review will be conducted under the leadership of NBN Co executive chair, Ziggy Switkowski, and will be submitted to the Government for consideration by 2 December 2013.

ENDS

[ENDS]