NBN wasted $800 million on useless Optus cable network

Money to burn

NBN Co Optus network

So it turns out the $800 million NBN Co spent buying Optus' HFC network might not have been the most sound investment.

According to documents leaked by Fairfax, NBN Co is now considering replacing the network entirely because it's just so, well, crappy.

Such a move would see the National Broadband Network's costs blow out by $375 million, while forcing 600,000 premises to wait until 2019 to access it.

The document describes the HFC network as being "not fully fit for purpose," and outlines a number of problems.

99 problems

These include oversubscribed nodes, which require splitting (an expensive process), some equipment "arriving at the end of life" and needing to be replaced, and cable modem termination systems that "don't have sufficient capacity to support NBN services."

The document states that NBN Co is considering two options. The first would be to overbuild Optus' network with Telstra's HFC network, while the second would replace it entirely.

The entire leaked document can be found here.

It just goes to show that you should always do the necessary research beforehand, so you find out exactly what you're getting for your money.

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