NBN may never make a profit, the CEO warns

AND MALCOLM TURNBULL ALSO WEIGHS IN.

THE CEO OF NBN CO, Bill Morrows, has claimed that, unless the service is protected from the threat of mobile broadband and the competition this poses, it will never make a profit. In an interview with Sydney Morning Herald, Morrows explained that while they currently earn around $43 a month for an average connection, this number needs to climb to $52 before they can even start recovering costs.

“Forget about 5G”, Morrows began, “even the antenna technology using 4G is a viable alternative to NBN where the towers are already up”.

There is currently a levy in place that charges fixed-line competitors a fixed monthly rate in order to subsidise the NBN rollout to locations that are difficult to connect, but Morrow is concerned that this levy doesn’t apply to wireless solutions.

Prime Minister Malcolm Turnbull has added his two cents to the issue in a public statement, admitting that the NBN will never make the profit that was initially expected, unsurprisingly blaming the Opposition for leaving the Liberal Party with a “calamitous trainwreck of a project when they came into government”.