In its first full year of operation, the NBN Co has spent less than 1 per cent of the government's total expected investment of $26 billion into the National Broadband Network (NBN).
In NBN Co's annual report, released on Friday, the company revealed that it had spent approximately $83.7 million for the year to 30 June 2010. Of the total amount, $38 million went to employee wages and $39.9 million went to external systems, legal costs and IT.
The company did not record any revenues from the network: the first Tasmanian towns had not yet gone live at June 2010. In any case, initial revenues might not be high in next year's annual report, as the government has been giving providers special rates to entice them to become involved with the network. Last week it was also revealed that since the roll-out began in Tasmania, just 436 premises have signed up for services on the NBN.
Since the end of the last financial year, the company had received a $350 million equity injection from the Federal Government in July and another $350 million injection will be put into the company next month. $100 million of this funding went to NBN Co subsidiary NBN Tasmania Limited. NBN Co said the timing and amount of further funding from the Federal Government will be determined once the government has formally responded to the McKinsey KPMG implementation study and when the company's heads of agreement with Telstra has been finalised.
The NBN Co had released an annual report prior to this one for the period from 9 April 2009 to 30 June 2009. At that point, the company had spent $139,000, all on external providers.