Monday, March 25, 2013

NBN Co’s rate of return forecast ‘dubious’

NBN Co’s rate of return forecast ‘dubious’: "Leading telecommunications economists have questioned NBN Co’s claims that it will deliver a 7.1 per cent return for the government by 2040, as it faces a decision from the competition watchdog on its pricing methods.

The company has maintained it will recover its $37.4 billion capital cost by 2033 and generate a positive return for the government of 7.1 per cent between 2012 and 2040.

A positive financial return is critical because it allows the government, under international accounting standards, to classify equity funding for NBN Co as an investment on the budget, rather than an expense."

'via Blog this'

No comments:

Post a Comment