NBN Co To Seek Private Sector Funding After Budget Ruling

Well, that's one way to make the National Broadband Network rollout cheaper. Malcolm Turnbull's office has confirmed in the Federal Budget that NBN Co will have to seek private funding to fund part of the NBN roll-out from mid-2018 after the government decided to stem the cash flow from the funding tap.

The Federal Budget confirms that the government will cap its investment in the NBN at $29.5 billion, with the remainder required to complete the network set to be funded by the previous sector.

The Budget will give $20.9 billion in equity funding to NBN Co between 2014 and 2018, which is meant to supplement the $8.6 billion in equity provided in the last six years.

Acknowledging that he faces a "significant task getting the NBN back on track," the Communications Minister said in his Budget statement that the new roll-out plan would save the government $3.6 billion in funding costs.

[Communications]