The NBN HFC Rollout Delay Could Cost $790 Million, According To NBN's Own Figures

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Yesterday it was announced that NBN was putting an immediate halt to any new HFC connections while it makes "crucial upgrades" for existing customers. An analysis of the 2016 NBN Corporate Plan, approved by the NBN board and signed off by Shareholder Ministers, shows the cost of this action could cost taxpayers between $420 to $790 million.

NBN HFC Rollout Halted To 'Improve Customer Experience'

NBN just announced a whole bunch of new initiatives it hopes will "raise the standard of service quality" to the Hybrid Coaxial-Fibre part of the network. To do so, new connections have been halted, effective immediately.

If you are in an area set to get HFC, and haven't already - this means you're going to be waiting at least six months longer for your NBN.

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The plan is available for anyone to read here.

Here's the bit you want to see, though:

As pointed out by Shadow Minister for Communications Michelle Rowland and Shadow Minister for Finance Jim Chambers, a seven month delay in HFC activations profile would have a $1 billion impact on rollout funding.

"On 24 May 2017, the Senate had NBN confirm the $1 billion figure was based on a seven month delay, for three million services, with an average revenue of $47 per month," the pair said in a join statement released today.

"It has now been revealed that problems with Turnbull's second-rate NBN could further delay the HFC rollout by 6 to 9 months for up to 2.5 million premises."

So based on the figures signed off by the NBN Board - these delays could impact funding by between $420 and $790 million.

We have reached out to NBN for a statement.

Turnbull Slammed Over NBN HFC Delay: 'What Have You Been Hiding?'

The Shadow Minister for Communications has asked Malcolm Turnbull the question many have been thinking. "What are you hiding from the Australian people about the HFC network? What have you been hiding?"

The question comes following the announcement from NBN HFC rollout has been "paused" - effective immediately - while work is carried out on existing connections.

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Australian Greens: 'Hey NBN - Upgrade To FTTP Already'

The Greens have spoken out about the NBN's "effective immediately" halt of HFC connections while "crucial work" is completed for existing customers - saying this sends a "clear signal" just a straight up Fibre to the Premises upgrade needs to be the priority.

Read more

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Comments

    Every time I read an article on our beloved NBN my heart sinks a little lower. I think I may even have NBN acquired depression and the only cure is an extremely expensive and no horizon seen finish to this shit!

    So the HFC rollout has surely, by now, exceeded the cost of FTTP?

    There was the initial network purchase, the subsequent additional bill to repair the network (the best deal-makers!), and now a massive-scale reevaluation.

    This is all going so badly, for so much money, that I'd be suspicious that it was a vehicle for money laundering if it could actually attract external investment. I guess we're just settling for tax dollars helping out the rich.

      NBNCo under the Liberal Government has ended up as a vehicle to enrich Telstra and Optus (owners of the pre-existing networks) and the contractors who are managing the rollout, at the expense of the taxpayer.

      History will judge Abbott, Turnbull and Fifield very harshly for their incompetence.

    I wonder how many people are gonna lose their jobs!!!!!

      no one gets sacked for incompetence... you only get made redundant to make budget numbers look better, just look at how Telstra does it...

    Sorry if I missed this but what exactly are they upgrading?

      Well, the spin is that they're upgrading the "customer experience".
      The meat seems to be that various elements of the network need replacing, but they're not entirely sure what.
      Remember this is the network that they paid Telstra way over the odds for. And when they found they'd squandered tax-payer's money on a lemon, they awarded a contract to Telstra to fix it up. And now the truth seems to be dawning that it wasn't the right solution then and isn't the right solution now either.

    I suspect that because Telstra was court ordered to compensate customers with speeds that where not attainable at the price point advertised, the NBN is staring down the barrel of a similar precedent if their network itself fails to provide the advertised speeds.

    Rather than roll it out on time and risk being sued for false pretences they are delaying the roll out all together, trying to fix the network to make sure they can obtain their min. advertised speeds and then start again.

    Ass covering at its greatest.

    I am so glad i moved off HFC on to FTTP.

      your cynicism levels are at a level I could only dream of having :)

    I am soooo effing angry right now. They dug up 1/3 of our driveway 2 weeks ago to supply HFC to people further down our street, but now they can't give me a timeframe of when it will be fixed. Originally was 2 days. We were about to put the house on the market as our dream home just came up for sale. If I miss out because our drive is effed, and there's a half-arsed fenced off pit area the size of 8 pits right next to it, I'll be seeing NBN in court.

    I was informed from our provider that NBN was coming on the 8/12/17. If I was only 1 week away from NBN and then find out there will be a 6mth delay, I'll be quite angry!

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