Ian McAuley explains why the NBN as a monopoly makes sense, why competition is not always the best solution to infrastructure problems, and why cost-benefit analysis isn’t always an appropriate tool for decision makers.
“Contrary to the OECD suggestion, a monopoly NBN is unlikely to suppress innovation, for it is about the mundane task of providing wires to homes and business premises. In this regard it is little different from other “pipes and wires” industries, such as water and electricity distribution: there is little scope for innovation. In fact, by providing a wide channel for applications, it will encourage service innovation. The two aspects — the wires and the content — should not be confused.”
Read the full article in New Matilda here.