Why the NBN concerns me.

For some time I've been watching the developments surrounding the NBN and thinking this doesn't make sense to me. A $43 billion project is a lot for Australian tax payers who have to foot the bill.

I personally don't think the government should make the rules and participate in the game. This leads to the government making the rules in their favour and I don't think that helps anyone in the long run.

Remember the Telstra monopoly. NBN looks like tomorrows monopoly in the making today.

But let's look at some figures that have appeared in the press.

In Tasmania they are rolling out the NBN to 200,000 households and businesses at a cost of $700 million. That's a cost of $3,500 per connection just for the initial infrastructure. That is a cost. It isn't the retail price consumers end up paying. Add wholesale margin, retail margin and GST and you can probably quadruple this figure.

If that's the case the average householder will need to pay back something like $14,000 and that's with 100% take-up. What if only half the population take up and use the NBN. This article indicates an expected take-up could be as low as 30%.

I can't help but wonder if the government's NBN monopoly will cripple innovation. I only hope other options continue to be available, although we do have to keep in mind when those that make the rules also play in the game, they can legislate the outcome.

For example I've noticed when tollways open, surrounding roads are adjusted to force users onto the toll roads. I can only imagine the same occurring with the NBN.

Small players will sell out and big players will have to play the game because you can't beat the umpire.

I'm all for progress. I just don't think replacing one monopoly with another is progress and I think history will be the best judge of that. Those who forget the past are doomed to repeat the same mistakes.

I do hope this becomes one of the next election issues. I think it is important we have a chance to at least voice our opinions in a way that matters.

- Kelvin Eldridge