The Federal Government will have to pay more than $50 billion for the NBN, with the amount depending on whether it sells the network to Telstra, which owns the NBN.
The Federal Opposition has already called for the Government to sell off the network, arguing it is a waste of taxpayer dollars.
The Government is yet to give a cost estimate for its plan.
NBN Co has estimated that it would cost $1.4 billion to build the NBN but has not set a cost for its fibre network.
But it has previously estimated the network would cost up to $4 billion.
NBN is expected to be finished by the end of the year.
Telstra has already said it would pay $1 billion for Telstra’s fibre network if it sells it to NBN.
What is the NBN?
The NBN is a network of wireline cable that connects Australia to overseas land, and is designed to increase the speed of digital communication.
The network is the backbone of the Australian telecommunications system.
The NBN covers a range of technologies, including fixed wireless broadband, mobile phone, internet and mobile TV.
It also includes mobile broadband.
Telco’s share in NBN Co’s business was worth about $1bn in 2020.
But its shares have since fallen as the NBN has struggled to win the market.
What’s in the NBN’s price?
The Government’s NBN plan calls for the cost of the network and services to be $49.9 billion.
It is also estimated the total cost of NBN will be $66.4 trillion.
The cost of owning the NBN would be about $3.6 trillion.
What are the risks of the NBN for the Australian economy?
Telstra owns a stake in the network.
The Australian Competition and Consumer Commission has estimated Telstra is worth about 30 per cent of NBN Co, while the Australian Competition Tribunal has said the company is worth 30 per, and has not been able to provide evidence that Telstra holds any significant influence over NBN Co. Telpac, the company that runs the NBN in the States, owns about 17 per cent.
The Coalition wants to sell its stake in NBN.
Its plan also calls for Telpac to pay a fee of up to 10 per cent to cover the cost, while it would not pay any fees to Telco.
Why is the Federal government investing in the National Broadband Network?
The Federal government has set aside $8 billion to cover its investment in the Network.
The money is a drop in the bucket compared to the $12 billion it has invested in the existing network, which covers almost one-third of Australia.
The plan is also expected to provide an additional $1,200 a month for people who use the NBN to cover their monthly telephone and internet bills.
It would also allow Telstra to increase its investments in its own network.
Who is involved in the plan?
The federal government has invested $18 billion in the national broadband network since the Coalition was elected in September, with more to come.
Labor wants to build a fibre-to-the-node network in the states, and the Coalition wants it in the country.
It has also proposed an internet-of-things network to connect homes to the NBN and boost the country’s digital economy.
What happens to the Government’s $10 billion investment?
Telco will pay $10.4 million to be part of the Network, but the Government will not pay the $9.5 billion it says it needs to make up for the lost revenue.
The funding will be split into two categories, and it is expected Telstra will receive about $5.6 billion in fees and $2.6 million for Telco and its subsidiary Telstra Mobile.