The cost of government stimulus

I noticed that Australia is continuing to press forward with its government-led NBN project, pumping about AU$36B of government funding into a project that hopes to have fibre to the home for 90% of the population.

The NBN plan is said “to promote sustainable retail-level competition, and fair pricing of wholesale services for all Australians.”

What is meant by fair pricing? $36B works out to about $5000 per household in upfront spending. That upfront government cash adds about $50 per month to every Australian households’ tax burden. Korea’s national broadband network is also the result of massive government involvement.

When looking at international broadband pricing, should comparisons include these hidden costs?

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