Australia's NBN to cost 24 times South Korea's faster network, says research body
Posted in: Government & Policy at 09/02/2011 18:15
The National Broadband Network will cost taxpayers 24 times as much as South Korea's but deliver just one tenth the speed, according to one of the world's most respected economic research organisations.
A paper released by the Economist Intelligence Unit today criticises Labor's broadband network on a range of fronts, including its cost per household covered.
To read this report in The Australian in full, see:
NBN costs taxpayers 24 times South Korea at one tenth the speed: report
Australia's national broadband network will cost taxpayers 24 times as much as South Korea's but deliver services at just one-tenth the speed, new research claims.
The opposition claimed the research vindicated its position that the NBN was a waste of public funds, while the government countered that comparing Australia to South Korea was "like comparing apples to oranges".
Full speed ahead: The government broadband index Q1 2011
With ambitious targets for both the speed and coverage of next-generation broadband networks, the developed countries of South-east Asia score highest in the gBBi, the first-ever index to assess countries on the basis of government planning, as opposed to current broadband capability.
Greece is the worst-performing country measured by the index, owing to its relatively low coverage target and drawn-out deployment schedule. Greece also suffers due to the size of its public-funding commitment as a percentage of overall government budget revenues, and because its plan does little to foment competition in the high-speed broadband market.
Australia, the country with the highest-profile and most controversial public-sector scheme, also falls in the bottom half of the index, mainly because it is spending a colossal 7.58% of annual government budget revenues on its National Broadband Network. In South Korea, by comparison, the government is spending less than 1% of annual budget revenues to realise its broadband goals, achieving targets by encouraging the private sector to invest in the country's broadband future.