Originally published: November 16, 2010
Last updated: November 16, 2010 - 7:03pm
The Organization for Economic Co-operation and Development is urging Australia's government to slow down the rollout of its $43 billion high-speed broadband network, warning that the project is installing a public monopoly that could choke off the development of better Internet technologies.
Instead, OECD is suggesting a more gradual approach would allow a better assessment of the costs and potential benefits associated with the National Broadband Network. In a new report, the OECD said the government had adopted a "picking-the-winner strategy" on the NBN that could hinder the development of "as yet unknown, superior technological alternatives". The report also found "substantial financial uncertainties" with the massive project - which is expected to have $26bn worth of equity funding from the government -- and cautioned that it may not be the most cost-effective strategy.
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