So instead of having money forcibly expropriated from everyone in order to subsidise what is essentially rich farmers asking for world class internet, we're going to have private growth which is going to create sustainable long term jobs in the broadband sector, lots of tax money from the profits of these companies to fill the government coffers and a cheaper, faster internet connection.
Sounds good to me.
There is so much I disagree with in this post that I don't know where to begin. Let's start by ignoring that every major network in history has been run and run successfully by these principles of subsidisation, a chain being only as strong as its weakest link. I'll go though your post point by point:
- "Money forcibly expropriated": Do you mean from customers or taxpayers? If the former, then unless you have been a first adopter and/or pay for the highest tier of any communications technology you use then that's exactly what you are doing. If you mean the latter, then you need to learn some fundamental economics which I will come to in part later.
- "Essentially rich farmers asking for world class internet": Since you are clearly a management consultant who has never done a day's work in any field of primary production, I'm willing to forgive this crass generalisation (see what I did there?). You seem to be forgetting that under both the original NBN and the Coalition's stunted mockery of it more remote areas are covered by either fixed wireless or satellite. I can tell you right now that neither are world class. As has already been mentioned, the rural areas receiving fibre are regional centres, towns with populations in the thousands, hospitals, schools, tertiary institutes, libraries etc... The people in those towns would have greater utility and arguably generate greater return from broadband infrastructure than metro centres.
- "Private growth which is going to create sustainable long term jobs in the broadband sector": How are these jobs more sustainable or long term than the jobs that would be created under a scheme where significantly more infrastructure is created and therefore maintained/upgraded? Because private companies would be employing the subcontractors?
- "Lots of tax money from the profits of these companies to fill the government coffers": This is not the purpose of taxes. Once again, I'm not sure why you think that private companies produce better economic results by default. The ubiquity of service that only the government could or would provide would involve more resources and therefore higher tax revenue, not to mention the larger increase to GDP the infrastructure would provide once in place. Even if one applied the concept of "coffers" to the federal level, why would taxation be preferred to a revenue producing asset?
- "Cheaper, faster internet connection": It may be cheaper for some, but it wouldn't be that much faster as the backbone would be the same and
potentially the lower prevalence of the technology would bottleneck transfers occurring intra-nationally. A point on price gouging: public assets have less imperative to deliver a profit. The whole point is that the price differential would not be the same as a private company attempting to do the same thing. OTOH, localised monopolies run by private companies can and do lead to worse outcomes for consumers.