Australia - Govt received Natioanl Broadband Company's business plan

[business spectator] NBN Co has submitted its eagerly awaited business plan for the national broadband network to the federal government, just weeks after saying the multibillion-dollar project would produce a public return above the bond rate on reasonably conservative assumptions.

The company established by the former Rudd government to build and operate behind the NBN, which will receive a $26 billion injection from taxpayers and has been dogged by calls for a cost-benefit analysis, is obliged to present its corporate plan to shareholder ministers.

A spokeswoman for Broadband Minister Stephen Conroy told Business Spectator that details of the plan - which includes information such as costs, pricing and rollout details - would be "released shortly." An NBN Co spokeswoman declined to comment beyond a two-sentence media release.

Last month, NBN Co chief Mike Quigley told Business Spectator that while it wasn't really the company's prerogative to release its business case, he was relaxed at the prospect of much of it being made available.

Questioned whether the project is viable, Mr Quigley said it was as a "nation-building project."

"Is it a project that a private-equity company would invest in at this point in time? Obviously, I don't think so," he said.

"It’s not something that a purely commercial private enterprise would do and, in fact, if it were the case that they would have, then it wouldn’t be something the government would need to be initiating."

He added: "... what we’re saying is we believe there is a business case that will produce a return for the public which is above the bond rate on reasonably conservative assumptions," Mr Quigley said.

"So is this a good use of public funds? I think, I believe it is a good use of public funds in terms of what it will produce for the nation long-term."

NBN Co submits business plan