National Broadband Network

Although the current global financial downturn has witnessed the fall of the Australian dollar, Communication Minister Stephen Conroy has rejected claims by Telstra chief financial officer that it would increase costs for the proposed development of the new national broadband network.

Mr Conroy argues that some of the estimates have actually come down to between 10 and $15 billion, and that it wasn't that long ago when there was speculation that suggested the NBN would cost around $25 billion.

With proponents having until the 26th November to enter bidding submissions, Mr Conroy remarked that there will be a lot more public commentary surrounding the $4.7 billion project that the government will not be buying into.

Many industry analysts are now suggesting that Telstra has tightened up as a favourite to win the broadband network tender rights due to the unsteadiness of the financial market along with the fact that the Terria consortium is now finding it difficult to secure funding. It's also been stated that it would not come as any surprise to see the government relax regulatory guidelines that could of potentially seen Telstra structurally separated.

The current eventuations certainly do make it appear that the government wants the NBN project put to bed and commenced ASAP! I guess it's only a matter of a few months until we see an outcome (finally!).