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‘No-Change’ Appointment Means Problems Lie Ahead: Budde

Telecoms analyst and commentator Paul Budde, pictured, has raised questions about the future of NBN Co, following the appointment of Stephen Rue. He says the internal nature of the appointment suggests neither the Government nor NBN Co are planning any changes – “no talks about writedowns, no upcoming privatisation or any discussion on the splitting of the company along technology lines or anything else.

“The message is ‘steady as you go’, continuing on the path the Government and NBN Co have set out for their broadband business,” Budde says

He adds that, while it makes sense to finish the NBN rollout, those questions remain and any resolution to them will take years of preparation and organisation.

One immediate result of “government inaptnesss” will be that smaller players will be squeezed out of the market, Budde says, adding: “As the margins are favouring companies that can build up very large customer bases, the smaller ones will simply not be able to survive – several of them will simply go bankrupt or close their shops.”

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