NBN Co. in trouble already!

Comments on Joe Kelly “High prices force NBN to suspend cabling tender process and look elsewhere”, 1/04/2011, http://www.theaustralian.com.au/business/in-depth/high-prices-force-nbn-to-suspend-cabling-tender-process-and-look-elsewhere/story-e6frgaif-1226031831542

Here is the problem with the NBN Co. business plan that uses unrealistic assumptions and projections.

Employment is tight and construction activities do not allow for the price that the NBN Co. has assumed in its plan.

What do you do if there is more demand for labour than supply, or more construction activities than the current capacities can meet? Of course that means firms have to offer higher wages for labour and higher prices for materials to attract more resources or even to keep their existing ones.

Now the NBN Co. is saying tender prices are too high and have to suspend the cabling tender process.

This is just an example of what will emerge in building the NBN in Australia in the future, costs overrun and blowout.

Didn’t the NBN Co. consider this when making its business plan? What a joke it is!