asset valuation
The NBN legacy – Rising prices and falling global rankings
Remember when the NBN was going to bring Australia a feast of fast and affordable broadband? Then how is it that Australia is 82rd in the world and falling ever further behind? And how is it that broadband bills keep rising in Australia while falling around the world?
Bob James and I have written many times over more than a decade about the failings the structure and level of NBN pricing. The time seemed right to remind people of why we are in the present situation. See The NBN Legacy_Final
Asset valuation for access pricing
The valuation of assets is probably the most important decision regulators will face for a network business dominated by fixed costs because depreciation and the return to capital derived from this valuation will account for well over half of total costs.
In some recent work for Fiji, there was some debate about whether assets should be based on ‘actual’ or ‘replacement’ costs. As the following report shows, my view is that both theory and practice support the use of replacement costs. Asset valuation-revised-1