NBN (National Broadband Network) concerns me. Are we creating Telstra 2?

I can't help but be concerned with the National Broadband Network. On the one hand I'd like the option that a fast optical fibre network will bring, but on the other hand because it is being built by the government and the government can legislate against all other players, it destroys competition.

The government sold off Telstra to mum and dad investors and then progressively eroded the value of the investment knowing it wanted to build its own fibre network. Of course it wasn't just the government but the worldwide trends towards reduced telecommunications costs working against Telstra, but I can't help feeling Telstra shares would be worth more if the government wasn't building its own network (Disclosure: I am one of the mum and dad Telstra shareholders but that isn't what concerns me.)

What concerns me is because the government is making the rules and playing the game, it is very hard for others to play the game. If you've ever played Monopoly as a kid you'll recall the person who was the banker somehow ended up doing pretty well.

Based on the experience in Tasmania the cost per connection (not retail) is $3,500. ($700 million over 200,000 connections)

So every Australian household is now to contribute $3,500 in some way.

I've read one ACT broadband supplier sold out early on. As I read other articles I get the feeling if broadband infrastructure suppliers aren't made an offer, they could go the way of the dinosaur.

Optus may close network for NBN: Conroy

Buy or beware - competitors gear up to do battle with NBN

Now I read since the copper network will be closed down if people want a fixed line and aren't connected to the NBN they'll have to pay $300.

Connect to NBN now or pay up to $300 for phone line

I keep reading articles about costs which people won't expect. When you get the NBN to you home what then? What wiring will you need done to take full advantage of the fast service?

The real concern is what happens in 30 years when the government wants to privatise the NBN. This feels to me like Telstra 2 in the making.

What about the billions of dollars invested in Optus and Telstra cable networks? What a potential waste if those networks are closed down before their time. Perhaps it is more efficient to close them down. I don't really know.

But my concern is it appears we won't have any choice and when that happens there is no competition and thus we can be charged whatever the government wants to charge. This reminds me of what is happening to electricity prices and once the government sells off NBN as it will in the future, I can't help feeling we'll all be having a feeling of deja vu.

What is wrong with the government making the rules by which multiple commercial players then operate? What is wrong with the government getting involved for areas where it is not economical for commercial players such as rural areas to make it commercially viable so all Australians get a fair go?

NBN isn't just about the internet and telephones. From what I see it is about the future of all forms of electronic media consumption households consume and soon I feel that could include the future equivalent of today's TV. Going one step further I suspect the NBN could become the backbone of all forms communication including mobiles and other forms of wireless communication giving the government and potentially a future privatised NBN owner single point control over a vital part of our countries infrastructure.

Right now bringing in an internet filter requires all ISPs to participate. With control at this level the government in theory could introduce whatever controls it wants without the involvement of any other party.

To me the government should be making the rules, not playing the game. Do we really want to end up with another government run monopoly? If government run monopolies were run at zero profit to world's best practices, I'd be in favour of them, but government run monopolies are run for profit at our expense.

The NBN concerns me. We can have a national broadband network without the government owning it. No one can compete against a government because it also makes the rules.

Kelvin Eldridge