The cost of the NBN on the balance sheet has nothing to do with the ability to repay the cost of the NBN, its just an accounting function.

what will determine the ability of the NBN to repay its debt will be its ability to generate enough revenue to cover the interest / capital payback and running costs of the company.

This IMO will not happen for a long time yet (post 2035) as the NBN is not been implemented on a commercial basis, it is been rolled out on a for social good basis which means that profit and cash generation are a long way last to social benefits to society.

the cost on the balance sheet only comes to play when you want to refinance / raise funds etc.

cost and cash generation are two completely different things.

The NBN is not a money making concern, it's infrastructure to allow the country to function at a better level.

Was the sewerage system built in order to make a profit?

Ex Dame Pansi wrote on Jan 8^th, 2012 at 2:47pm:


It's not about a profit, it's about the ability for the infrastructure to be paid for.

Sewage systems and the like, are paid for by council rates and infrastructure charges placed on developers. so they become a neutral cost to the council.

IMO the NBN will not be in a position for a long time (post 2035) to be cash neutral, this is due to the way in which it is been rolled out.

Every one whinges about the reduction in services Health / education and the like (services that will never be cash neutral) so why are we misusing available funds for longer then needed to fund a project that if rolled out in a different manner would free up cash to go towards Health / education, instead of draining cash from them.