Broadband, Communications and the Digital Economy
National Broadband Network — revised investment
|Department of Broadband, Communications and the Digital Economy||‑||‑||‑||‑||‑|
The Government will invest $27.5 billion in NBN Co Limited (NBN Co) to build and operate the National Broadband Network (NBN). This includes the Government's initial investment of $4.7 billion announced in the 2009‑10 Budget.
The Government has established NBN Co to build and operate the NBN to deliver high speed broadband services to all Australian premises, including homes, schools and businesses. The Government's investment towards the total capital expenditure on the NBN, estimated to be $35.9 billion, is in accordance with NBN Co's publicly released Corporate Plan. The Government has endorsed the Corporate Plan as being compliant with NBN Co's Statement of Expectations which comprises the Government's final response to the Implementation Study.
NBN Co will be funded with Government equity until NBN Co has sufficient cash flows to support private sector debt without explicit Government support. The Government expects that during the rollout period private sector debt raised by NBN Co will complement Government equity to fund rollout activities. During the rollout, the Government will retain full ownership of NBN Co in order to achieve its policy objectives.
The Government's investment over the forward estimates is expected to be $3,088.0 million in 2011‑12, $4,400.0 million in 2012‑13, $6,600.0 million in 2013‑14 and $4,100.0 million in 2014‑15. This is in addition to $1,712.0 million in equity provided to NBN Co in 2008‑09, 2009‑10 and 2010‑11.
The investment does not have a direct impact on the underlying cash or fiscal balances. Any additional public debt interest cost incurred by the Government would impact on the underlying cash and fiscal balance, and is accounted for separately in the budget estimates.
Further information can be found in the joint press releases of 20 December 2010 issued by the Prime Minister, the Deputy Prime Minister and Treasurer, the Minister for Finance and Deregulation and the Minister for Broadband, Communications and the Digital Economy.
See also the related expense measures titled National Broadband Network — implementation and National Broadband Network — regulatory framework in the Broadband, Communications and the Digital Economy portfolio.
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