The National Broadband Network is expected to not make a profit for up to 30 years according to NBN Co chief executive Mike Quigley responding to questions in a Senate Committee inquiry yesterday.
The National Broadband Network is in the spotlight with senior officials reporting to a Senate Inquiry into its proposed operations.
NBN Co chief executive Mr Quigley was adamant that this type of project, while it will ultimately end up in private hands, was a critical piece of nation-building infrastructure that would not have an immediate payoff.
”This is a long-term project, so you’d think for this type of nation-building infrastructure I imagine that you’d be looking at between a 20 to 30-year timeframe.” he said.
Opposition senator Mary Jo Fisher said Mr Quigley’s projection would be concerning to taxpayers The Age reports.
”I’d expect taxpayers to be incredulous that the boss of NBN Co reckons it could take 30 years for NBN Co to deliver on Kevin Rudd’s promise that NBN Co will become a commercial proposition.” She said.
Potential investors are likely being cautious about partnering with NBN Co early on in the process. Chief executive Mr Quigley has indicated that NBN Co isn’t courting investors at this point in the project’s lifetime.
“We are nowhere near that point yet,” he said. “It’s simply not practical for a company such as NBN Co any time soon to go to private equity or private debt markets, so we’re not even thinking about that at this point.”
