Andy Penn (photo) has called on the government to review the price of the NBN network
Telstra boss Andy Penn has warned that the national broadband network could soon become worthless because customers no longer use it for 5G.
Penn has appealed to the government to reconsider their prices for the broadband network because sellers are unable to make a profit from selling the NBN.
He said retailers cannot sell the network viably and will look at other options, including 5G.
& # 39; In principle, all operators lose money by selling the NBN. And so some – and they have said so much in public – are looking at 5G to bypass the NBN & # 39 ;, Penn said to Sky News on Monday.
& # 39; I don't think that's necessarily good if it doesn't deliver the right technology for the customer. & # 39;
Alternative networks such as 5G offer more cost-effective solutions for companies, and that voice speaks on volume.
Penn warned that the NBN program financed by the taxpayer could be fully traced if the profit margin did not change.
& # 39; If wholesale prices do not change, that is what will happen. & # 39; Penn said.
& # 39; Unless we have the pricing structure right, we are going to create this unnatural dynamic in the market that biases technology for reasons other than what is the best technology for the customer. & # 39;
& # 39; To be honest, my point is that unless the price structure changes and operators can generate a return on capital in which shareholders are willing to invest, the NBN is worthless anyway. & # 39;
The network budget for broadband deployment has reached $ 51 billion, which is 75 percent more than the initial pre-election budget announced in 2016.
In June, Australian Huawei director David Soldani claimed that the NBN had failed to provide high speed internet to its users.
& # 39; The NBN project has failed and Australians must stop expecting NBN Co to deliver super fast broadband to all Australians – it just won't happen & # 39 ;, Soldani told delegates during a 5G Business Summit in Sydney.
& Australia has somehow managed to invest $ 51 billion in a network that cannot even deliver 50 Mbps to around one million of fixed broadband end-user buildings. & # 39;
Mr. Soldani claimed that the actual costs of the project are even higher, according to some reports, NBN Co. suggests. Telstra billions of billions of subscriber migration and lease payments in the near future.
In June the Australian Huawei director David Soldani (photo) claimed that the NBN had failed to provide fast internet to its users
& # 39; We spent about $ 10,000 for each activated building on the NBN Fixed Wireless network and yet hundreds of sites deliver only 6 Mbps or less to end users at peak times – worse speeds than many on old ADSL services. & # 39;
He also said that without both sides of the government indicating that they would allocate additional funding to the project in the May federal election, hundreds of thousands of Australians had no chance of improving their speeds.
Huawei is one of & # 39; the world's largest telecommunications companies and is the second-largest manufacturer of smartphones in the world behind Samsung.
The Chinese technology giant was banned in 2018 for security reasons from participating in the roll-out of 5G infrastructure in Australia by the Turnbull government.
The United States has already raised their concerns and took action in May this year when it banned Huawei from doing business with US companies for alleged violations of trade restrictions against Iran.
Mr. Soldani argued that 5G fixed wireless technology is the best way to offer consumers fast internet where NBN had failed, and Huawei can provide the infrastructure.
& # 39; It makes no sense that Australia & # 39; continues to exclude the world's leading supplier of 5G technology from the market. The technology is already there to solve Australia's challenges – there is no doubt about that, & he said.
The network budget for broadband deployment has reached $ 51 billion, which is 75 percent more than the initial pre-election budget announced in 2016. Photo: employees install a fiber optic cable in Brisbane
An NBN spokesperson disputed the claims and said the network & # 39; the backbone of broadband in Australia & # 39; used to be.
"We are building the NBN to meet Australia's ever-increasing demand for data, and the rollout will be completed in June 2020," the spokesperson said.
& # 39; On the NBN access network, the average monthly data line usage for fixed lines was 203 GB in 2018, compared to around 10 GB per month on mobile broadband networks, and we expect fixed broadband data growth to be more than double over the next four years will amount to. & # 39;
& # 39; Against FY22, NBN Co expects about 75 percent of homes and businesses to be connected to the NBN network. & # 39;
"Furthermore, comments from leading mobile operators have clearly explained that they consider the two technologies to be complementary in the future. & # 39;
. (TagsToTranslate) Dailymail (t) news