NBN losses to reach $25bn by 2040, report finds

In a report released on Wednesday, the Productivity Commission said losses incurred by NBN Co during its construction phase were unlikely to be offset through future revenue, and the government-owned company is unlikely to make a commercial rate of return. The commission noted that as of the end of 2021, NBN Co had accumulated losses of $36bn, but even by 2040 this figure would still be $25bn.

When selling the policy, the Coalition government claimed it would result in a cheaper version of the NBN than Labor had originally planned in 2009, but the Productivity Commission found the switch added to the costs for the network.

A spokesperson for the communications minister, Michelle Rowland, said the government had no plan to write down the value of the NBN.

The number of faults with FttN was 27,000 in the 2022 financial year, which is nearly four times higher than FttP at 7,200, NBN Co said. The cost to repair was also higher because faults took longer to find in FttN.

NBN Co also warned that FttN and cable network repairs in the increasing frequency of extreme weather events were more costly than fibre-to-the premises.