Cable chief Mike Fries questions NBN rate

There are unmarked reservations about the government's capability to draw private deal to its $43 billion nationwide broadband network behind the top of the world's second-largest cable-TV operator held the project's expenses were "baffling".

Mike Fries, chief executive of Liberty Global and chairman of Australian regional pay-TV operative Austar, said the rate of connecting 90 per cent of Australian sites to a fibre-to-the-home network did not add up when on hand communications could be raised to transport the 100Mbps speeds guaranteed by the NBN.

"By just looking at it as a business administrative, I find it a bit inexplicable. Except most probably the political course will work itself out," Mr Fries said to the ABC's Lateline Business.

Liberty Global, established by John Malone, is the second-biggest pay-TV and broadband contractor in the US, with global takings of $US11bn ($11.9bn). Its international range consists of a controlling interest in Austar and contributes to Australia's Showtime and xyz networks.

The government yesterday argued with Mr Fries' evaluation, saying his assessment was not like-for-like because the NBN was a nationwide road and rail network scheme and not an incremental promotion to accessible services.

A spokeswoman for Communications Minister Stephen Conroy "not like the HFC (used by Foxtel), which has an inadequate track in Australia, the NBN will carry services to 100 per cent of the state 90 per cent fibre-to-the-premise and 10 per cent next generation outpost and wireless."

Mr Fries's fears as regards to the expenditure of the NBN must ring alarm bells for an administration hoping to subsidize half of the scheme with private sector savings. Mr Fries questioned as well whether there was sufficient claim for the NBN's guaranteed 100Mbps internet access rates.

"Do regulars call for 100Mbps? No, what they call for is admittance," he said. "It will progress, it will get more rapidly, but we trade 100 megabytes in 50 per cent of our trail and very few people purchase it. Nearly everyone purchase 20, 30 -- that's kind of the engaging spot."

Mr Fries questioned as well the effectiveness and feat of communications colossal Telstra as a half-owner of Foxtel subsequently to News Corporation (publisher of The Australian) and James Packer's Consolidated Media.