SYDNEY, March 8 (Xinhua) -- The creation of Australia's National Broadband Network (NBN) has inhibited the nation's innovation and productivity gains, a report has found.
The report, released by the Organisation for Economic Co-operation and Development (OECD) on Wednesday found that the creation of the NBN is keeping internet prices in Australia too high.
It said that the requirement that the NBN provides returns on the government's investment has created an expensive and inflexible pricing structure that has dissuaded private companies from providing viable alternatives.
"The cost savings of this (mixed technology) approach have become less clear over time. Optical-fibre installation costs have fallen and repair and renovation costs to pre-existing network facilities have proven greater than expected," the report said.
Of 32 countries canvassed for the report, Australia ranked fourth worst for broadband speeds and penetration.
The report said that the NBN was too focused on maximising revenue rather than giving multiple options to Internet Service Providers (ISPs).
"NBN is not only the owner and maintainer of much of the access network but also practically the only provider of wholesale products to retail providers," the report said.
"(Its offerings) might be attractive in terms of providing a return to fiscal investment, but may be forcing consolidation (and discouraging entry) in the market for internet service providers."
The report comes as the NBN faces criticism for announcing that it would rollout superior fibre technology to 700,000 Australian homes, essentially acknowledging the technology it has rolled dout elsewhere is inferior.
Since first being announced in 2007, the NBN, Australia's largest ever infrastructure project, has been the subject of constant controversy with the cost of the project blowing out by as much as 1.5 billion U.S. dollars a year.
