blog Come on, we know you’ve been waiting with bated breath since yesterday to find out what Exetel chief executive John Linton thinks of the NBN Co business case released yesterday. No major NBN announcement would be complete without Linton’s point of view. And Linton doesn’t disappoint. This morning, he writes:
“I thought Exetel had sub-standard business plans … but ours are an economic work of art compared to the drivel released yesterday purporting to be the ‘NBN2’ business plan for the next 9 plus years.
I wasted part of my life yesterday reading the newly released NBN Co business plan — or more correctly described — the NBN Co draft outline of some ideas for possibly constructing an unbudgeted infrastructure with no underpinning facts to show why it would be a good thing to invest an unknown (because there was no factual basis for almost all of the assumptions) amount of money in. As a ‘business’ document it lacked any credibility to any sensible investor — but then the investors, you and I and every other taxpayer, were never consulted before this Krudd cover-up was foisted on us.”
And that’s just the start — the rest of the post is in this vein.
However, as Linton’s post rolls on, he actually starts to make some sense, going into some of the real prices that smaller ISPs like Exetel pay and where he expects the NBN pricing to sit within that structure. As with all of the Exetel chief’s ranting monologues, don’t write his opinion off just because he sounds a little off-beam. When it comes down it, Linton often appears have a sound financial argument for his arguments.
The minimum $24 monthly cost for a 12Mbps service, Linton points out, is around 30 percent more than Exetel currently pays for an ADSL2+ service from “the most sensible” of its wholesale suppliers. He also discusses the bundled telephony situation, which NBN Co’s business case doesn’t go into that deeply, and ruminates about activation charges and even whether 70 percent take-up of NBN services is realistic.
As we’ve previously written, Linton’s not crazy, just eccentric and plain-spoken. And Exetel is exactly the size ISP which the Federal Government needs to keep alive if it is to justify its claims of increased competition in the post-NBN telecommunications sector.
Image credit: Delimiter