The impact of an NBN on an ETS

Is there more to the National Broad Band (NBN ) than than just all the hoopla over high speed movie downloads?? I suspect that maybe there is. Check out Smart Grids Australia “…. Smart Wired Consortium a broad based, home connectivity industry body, with members including FOXTEL and Telstra Smart Community, amongst others, have warned that Australian homes run the risk of missing out on the optic fibre revolution, and calling for agreed technology standards for new and existing homes. The Consortium is launching a new Code of Practice and a number of related Handbooks on home technology. The Code of Practice sets out the basic standards homes will need to ensure they get reliable and guaranteed entertainment, security, energy management , communication and automation services, and has been developed as an open, independent platform. A couple odf the policy statements give a bit a clue. Continue reading →

Costing a National Broadband Network

For a long time now the ALP has pushed their multi-billion dollar broadband network ever since it was announced by their previous leader, Kevin Rudd.

The $43bn investment seems pretty impressive, but if you look past the fortune cookie price tag, things just don’t add up.

After pondering how much value we’d get for it, I found some numbers to crunch:

Last I read, Australia had about 154,000,000km of copper wire.

This was from a Telstra Source in May, 2010.

The ALP has $43,000,000,000 outlined to spend in making 98% of Australia FTTN (Fibre To The Node); so this would mean that the projected cost is about 0.27c a meter to install; about $279 a kilometer.

But let’s look at the prices they are looking at. In 2007, Telstra was paying it contractors the below amounts to undertake the following services:

# Open trench and laying 100mm conduit – $80 per metre
# Boring 100mm conduit – $50 per metre
# Pits for hauling approx every couple of hundred metres & every change of direction – $250 – $700
# Fibre – $3 – $10 per metre
# Rod, rope & haul fibre approx $8 – $15 per metre
# Re-instatement of concrete/bitumen/pavers – $30 – $60 per m2

The cable alone costs $3,000-10,000 a kilometer.

Simple Question:
Does that seem like $279 a km to you?