S&P Claims NBN Writedown “Inevitable”
Global credit rating agency, Standard & Poors, claims an NBN write-down is “inevitable”, with the network at risk of being a “last resort” amid the rise of wireless 5G technology.
Dubbed a ground-breaking report, S&P claims the NBN’s forecast of 73% – 75% uptake by 2021 will be “difficult to achieve” – increasing the likelihood of a massive asset writedown.
As per Sydney Morning Herald, S&P asserts it’s “getting harder” for the government to generate a commercial return on investment. The NBN’s “unusually complex pricing model” is reportedly part of the issue.
As previously reported, several commentators have slammed the NBN’s pricing structure, with consumers’ at risk of abandoning fixed line internet for 5G wireless.
However, S&P does not forecast mobile networks to “completely supplant” the NBN “anytime soon”.
Despite this, many analysts expect 5G to be a notable threat against the NBN, specifically in the value market.
As previously reported, in June Telstra Chief, Andy Penn, claimed 5G could double wireless-only households – a figure currently around 15%, with ~30% tipped in the future.
Whilst advancing wireless/mobile technology is a global transition, the global agency states many of the NBN’s issues are specific to Australia including; political involvement, roll-out calculations, and a complex pricing structure.