The company responsible for deploying the National Broadband Network (NBN) across Australia has maintained that there are no impairment issues that would see the company needing to write down the value of the company, and that those calling for such action are just after a wholesale price cut. “When people say there should be a write-down, I don’t think that is what they are really calling for. Essentially, they are calling for the wholesale price to fall dramatically,” NBN CEO Stephen Rue told the Joint Standing Committee looking into the business case for the NBN on Monday. “Calls for a large wholesale price cut puts at risk the long-term viability of the company … without that, I truly believe you put at the digital future of the country, and all the benefits that flow.” Rue said the company wants retailers to be successful, but that the NBN needs to have enough cash to complete the build, and maintain and upgrade the network. The NBN CEO also restated that the network build would be complete in 2020. In October, NBN chair Ziggy Switkowski ruled out a write-down, saying the ability to properly value the network would not happen until the 2020s. Read: NBN chair rules out network write-down “I think considerations and evaluations of NBN will await the business moving into a normal conventional mode, which will happen when we finish the building in 2020, we complete the conversion of all households and businesses in 2021, we turn cashflow positive, we… [Read full story]
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