Rollout delays decimate NBN's forecast earnings NBN Co: Earnt a 10th of what it was expected to be earning by 2013. NBN Co's latest annual report reveals it earnt a 10th of what it was expected to be earning by 2013 due to continuing rollout delays, throwing into question the government's ability to attract private equity to the project by 2015 as originally forecast. However, new Communications Minister Malcolm Turnbull warned the current government did not trust the report's connection numbers and they could be lower than actually reported. In several cases this information is expressed in form, or measures a concept, specific to the previous government's policies. However, in the view of current government, this does not necessarily provide a meaningful indicator of progress," Mr Turnbull and the Finance Minister, Mathias Cormann, said in a joint letter accompanying the annual report. In particular, they were concerned NBN Co did not specify how many premises classified as "passed" could get a connection if the owners wanted one, and whether "construction commenced" meant work had actually started or if premises were just included in high-level design work. NBN Co's report states that by August 27 work on fibre connections had begun at 1.2 million premises, including 85,000 in new housing estates, and that it has passed 207,000 premises with fibre. It had 33,586 active fibre connections and 36,514 active wireless or satellite connections. However, NBN Co starts new weekly reporting this week, which includes revealing the number of "serviceable" premises within the fibre footprint. The latest figures show 70 per cent of 230,000 premises passed by fibre were serviceable, and that NBN Co had 107,230 active connections across fibre, wireless and satellite technologies on October 27. Mr Turnbull has commissioned a fresh review of the project and promised to improve reporting standards, including the new weekly progress report. The first, a strategic review, was due on December 2, but two more reviews - including a six-month cost-benefit analysis - have not started yet. The new government plans to change NBN Co to a fibre-to-the-node rollout, which would affect the current financial assumptions due to changes in cost and revenue forecasts. The existing fibre-to-the-home rollout would continue during the review process, Mr Turnbull said in September. The annual report completed on August 27 reveals NBN Co earned revenues of $17 million for 2012-13. This was up from $2 million in 2011-12 but far less than the previous government was expecting it to be earning by now. It recorded a post-tax loss of $932 million, with operational costs reaching $1 billion, nearly double the previous year. In 2010, NBN Co forecast it would earn revenues of $160 million in 2012-13, with a view to tapping debt markets for funding by 2015 or 2016. The most recent corporate plan still expects to be able to attract funding from investors within two years, but this prediction relies on revenues reaching $377 million and getting 1.2 million active connections by July 2015. Federal funding for NBN Co has been lower than expected due to construction delays. Meanwhile on Wednesday, it was revealed Telstra is suing NBN Co over a dispute concerning when indexation of inflation should be applied to the multi-billion deal signed by the two companies last year. Telstra filed a summons in the Supreme Court of New South Wales' commercial division on Tuesday afternoon, but has not yet made a statement of claim. A direction hearing has been set for November 8.