What the hell happened to this thread?
My 2 cents:
NBN is vital infrastructure for Australia's future akin to roads, sewage systems and the electricity grid. It will (eventually) be a public good that people will rely on and everyone will benefit from economically because it will enable new, data-driven businesses to become possible as new markets are opened up.
The same concept can be applied to road and rail infrastructure in the 19th century. Towns boomed when rail lines and highways came to them. Expanding infrastructure makes living and doing business in far-off markets viable, which increases the wealth and standard of life for everyone, not just those who were formerly at the periphery.
Unfortunately, there are big downsides to building infrastructure from a private enterprise point of view.
First is the gigantic capital cost required to get even the smallest projects off the ground. The amount of credit required to build a power plant, for instance, bars all but the biggest players from even contemplating such a thing. It's hard enough trying to run a profitable business using existing plant, let alone trying to manage acquiring it in the first place.
Second is the fact that the economic dividends of building infrastructure aren't necessarily immediate upon completion. The growth of a small town into a bustling regional centre is a process that can take a generation and even after the infrastructure is built, it may generate negative revenue for you for decades.
Then there is the issue of gathering that revenue in the first place. A business can only generate revenue from a plant by asking its end users to pay fees, subscriptions or tolls. That's fine when you're talking about non-vital services, like a phone sex line, but what about stuff that everybody benefits from? Farmer Giles and Hipster Sven both benefit from Trucker Jimmy having use of the road between the Giles farm and the organic food market in Sven's filthy hipster enclave, but only Jimmy ever uses the road or pays the toll. This means that Sven is bearing the brunt of the cost (as it's passed on directly by Jimmy), drives down the prices Giles is able to charge for his goods and limits his customer base only to people like Sven who are prepared to pay Jimmy's outrageous prices. However, if you could levy a fee on everyone who will benefit or potentially benefit from the road being there, you're able to spread the cost around and no individual ever needs to be charged $5 for a mango. This way, Office Worker Wilma can head down to the same food market and buy Giles' goods without feeling ripped off and everyone in our little story benefits. There! Everyone just benefited from being taxed.
Taxation to pay for infrastructure is a well-trod concept and I'd hate to beat a dead horse here, but it's really important. Consider street lights. Street lights can do a lot to improve safety in an area, either by moving potential criminal activity elsewhere, enabling business to continue beyond sunset or by simply allowing night traffic to see all hazards. Everyone in a neighbourhoods benefits, even if they never drive at night. Trouble is, if you make that a user pays system, nobody will ever put one in. They're individually expensive, tricky to maintain and the benefits you get are diminished by the fact that your neighbours down your street opted to not pay for one. One light does not make a lit street. If you owned a restaurant and lived in a world where street lights are user-pays, you'd be forgiven for concludibg that it's not worth the investment.
This is why the Australian Federal government's decision to install Fibre to the Node broadband Internet over FIbre to the Premesis is a bad idea. By making it so that that last connection is user-pays, you limit the benefits of everybody having access. This means that if, in five or ten years time, virtual offices relying on (say) VR headsets and streaming, high definition 3D video and stereo sound were to become viable on entry-level computer hardware, businesses couldn't take advantage of the savings a distributed office network offer (no renting office space, no facilities management, employees are able to work flexible hours without impacting the bottom line etc.) because they couldn't rely on their employees having Internet connections fast enough to handle the data requirements.
Same goes for potential realtime medical monitoring, future distributed computing applications, cloud-based anything, IP telephony or on-demand HD or 3D television services.
The FTTN plan will probably be okay for now. Perhaps it'll still be okay in five years. In ten though, in twenty? We'll be getting spanked by Swedish firms that don't even bother to rent office space anymore. FTTP could last us another fifty years or so, once the fibre is in the ground. What's valuable about it is the reliable channel that will only get faster as switching technology is improved and upgraded at the exchange.
Right now we're routinely doing things that are so data intensive they would have been unimaginable in 2003, let alone 1998. The government is being penny wise and pound foolish and crippling the Australian economy for years to come.