Broadband: NBN

Mr Fletcher asked:

In respect of the Government's television commercial on National Broadband Network (NBN), (a) is it a fact that the Government will invest up to $43 billion on this network, and (b) is the Government still committed to private sector investment in the NBN?

The Australian Government has established NBN Co Limited (NBN Co) to build and operate the National Broadband Network (NBN). The government originally estimated that NBN Co would invest up to $43 billion over eight years to fund the rollout and ongoing operations of the network.

On 20 December 2010 the government released NBN Co's Corporate Plan to the public which indicated that the total capital expenditure for the project is estimated to be $35.9 billion, less than the government's original $43 billion dollar estimate, in large part due to the agreement between NBN Co and Telstra. The government expects to contribute $27.5 billion in equity for the rollout.

The government is still committed to private sector investment in the NBN following completion of the network and subject to examination of the Productivity Commission Inquiry report by a joint committee of Parliament.