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With regard to the AFR article above on the Tasmanian rollout, do you have any insight on whether Silcar's negotiated 20 per cent increase in NBN contracts as reported is reflected in the June 2013 corporate plan costs ?
No idea about Silcar's reported increase being included in the Corp plan or not.
On signing the original, two-year $380 million contract in 2011, NBN Co said a renewal would be worth an extra $740 million for a further two years.
However, in its attempt to rush the signing, NBN Co is believed to have agreed to increased payments to Silcar, which is paid per premises it passes with fibre optic cabling.
The company also agreed to waive millions of dollars in penalties known as “liquidated damages” for which Silcar was liable, in failing to meet internal targets under the existing contract.
A spokesman for Leighton Holdings subsidiary Thiess, which took full control of Silcar last month, said the deal’s value of “up to $300 million” over 12 months depended on the scope of construction, which was yet to be decided.
nice to see open transparent Malcolm is now avoiding the media over the appointment of his Ozemale mate Russelot and ex Telstra employee to boot, along with Milne.
neither seems to have been involved with telco infrastructure, so one has to wonder besides political favouritism and possible Telstrafication of NBNCo, why did they get the jobs so easily?
So we have ex telstra employees with a histroy of backign the Liberal party, and Russelot has also been out spoken on his support of FTTN.
Seems like MT has taken to heart never hold an enquiry unless you know the recommendation.
nice to see open transparent Malcolm is now avoiding the media over the appointment of his Ozemale mate Russelot and ex Telstra employee to boot, along with Milne.
neither seems to have been involved with telco infrastructure, so one has to wonder besides political favouritism and possible Telstrafication of NBNCo, why did they get the jobs so easily?
So we have ex telstra employees with a histroy of backign the Liberal party, and Russelot has also been out spoken on his support of FTTN.
Seems like MT has taken to heart never hold an enquiry unless you know the recommendation.
It gets worse, Milne still owns 305k of shares in Telstra worth about $1.5 million. How can he possibly be considered for such a position given the obvious conflict of interests. This demonstrates sheer incompetence in selecting this board however I don't think that's the case, more the case of MT choosing people that achieve his desired broadband plan. As we find out more it seems clear this is hardly an impartial transparent review that we should expect. Is a Telstra shareholder really going to have tax payers best interests at heart when reviewing the renegotiation of the Telstra deal worth billions? Milne has also publicly been on record supporting FTTN over FTTP, MT sure stacked the deck on this one.
It will take some time to work through the complete enema that the ALP unleashed on Telecommunications when it devised the NBN.
Be patient Syd and Overhang.
Hug your thighs and await for a cleansing of governance, which has been sadly lacking from this constipated brainfart by two of the biggest dills in the ALP, Conroy and Rudd.
This project needs management, not every second **** a hoop IT guy with an opinion.
It may be a nation changing project, but it needs proper governance.
gg
So you're quite comfortable with Malcolm providing jobs to close friends who are ex Telstra employees.
Any idea how people who still have a vested interest in Telstra can act impartially? Is it wise to set up a technologically agnostic review of the NBN and assign someone who is strongly pro FTTN to help run the audit?
I've seen you criticise the ALP for jobs to mates, yet your strangely silent when the Liberals do it.
I can hear your concerns Syd.
My impression is that they are EX Telstra people.
And that Malcolm Turnbull is a much smarter businessman than Conroy ever was.
The ALP is an organisation which has specialised in "jobs for mates ", so I make no comment on your slur on Malcolm Turnbull.
I would be surprised if Muppets were appointed.
gg
I agree MT is a more astute businessman than Conroy but Conroy also seemed to have a greater grasp of the IT sector than MT all though I find them both knowledgeable in this area.
The bottom line is Milne should have never taken this job with the obvious conflict of interests and he shouldn't have been asked to. I'm also concerned that this report won't be impartial considering the majority of the IT sector indorses FTTP over FTTN but yet MT seems to have arranged for the minority of those opposed to FTTP to head this report but I guess balance on the matter would have been too much to ask for.
Construction commenced or completed(1),
Fibre brownfields premises 1,114,964 (2013 cumulative)
(1) Construction commenced or completed: refer to definition of construction commenced in the glossary of terms.
FTTP Brownfields:
Contract Instructions (CI) have been issued together with the initial Network Design Documents
(NDD) so that construction partners can commence work on the detailed design, field inspections and
rodding/roping activities in an FSAM. This is followed by the release of a rollout map for the FSAM on
the NBN Co website showing the coverage area for that FSAM and the estimated number of premises
to be passed.
http://www.theage.com.au/technology...posts-932m-operating-loss-20131029-2wegk.html
NBN Co posts $932m operating loss
And while the company's total yearly telecommunication revenue of $17 million
If I ran my business like that.....
MW
THE company building the National Broadband Network has revealed a $932 million operating loss after recording only $17 million in revenue for the 2013 financial year.
While NBN Co increased revenue by $15 million compared to the 12 months to June 30, 2012, the company fell short of the revenue targets outlined in its Corporate Plan which predicted the company to bring in $18 million this year.
Revenue generated from the NBN Co's 70,100 retail customers provided an average revenue per user (ARPU) figure of $37 a month, which was higher than expected.
NBN Co’s loss before interest and tax was $880 million, far below the projected $1.3 billion loss it forecast in its corporate plan. The loss was not as severe as projected as delays to the rollout schedule meant the NBN Co’s capital and operating expenses were lower than first forecast. NBN Co’s capital expenditure was $1.76 billion against the $3.19 billion forecast in its corporate plan.
The figures, which are contained in the NBN Co's annual report for the 12 months to June 30, 2013, also reveal that the company had $1 billion in cash and investments following government-funded equity injections of $2.4 billion during the year.
Those equity injections, however, were $2.3 billion less than the company's forecast contribution of $4.7 billion for the year.
The NBN Co's operating expenditure came in at $749 million, significantly lower than its forecast $1 billion, because of delays in its rollout schedule.
"The main contributing factors for this were slower than anticipated progress in the rollout of the fibre," the NBN Co said.
Under its deal with the NBN, Telstra will receive $9bn in net present value for providing access to certain infrastructure, including fibre, exchange space and ducts. The dispute is of significant financial value to Telstra as payments to the telco are to increase with CPI for the term of deal's 30-year lease period.
The telco giant believes that because that $11bn deal was signed in June 2011 that CPI adjustments on its payments should have triggered on January 1, 2012. The NBN Co however wanted the adjustments to begin a year later on January 1, 2013.
"We have one take on the contract and NBN Co has another. We have not been able to reach agreement through a long mediation process so, as provided for in the contract and as the next step, Telstra is asking the Court to decide," said a Telstra spokesperson.
Legal spat between Telstra and NBN Co,
I would have thought this was a pretty basic term in the contract to get clear in the first place.
http://www.theaustralian.com.au/bus...-cpi-adjustments/story-e6frgaif-1226749562372
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