Corporate Plan 2017 - NBN Co
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
Corporate Plan
2017
Contents
PART A: PLAN OUTLINE 5
PART B: CORPORATE PLAN 25
1 Corporate Plan summary statement 26
2 Background, performance and objectives 30
2.1 Background 30
2.2 Strategic imperatives 30
2.3 Performance to date 32
2.4 Objectives ahead 33
3 Market overview 34
3.1 Market trends 34
3.2 Australian market overview 35
4 Operating plan 36
4.1 Product and customer strategy 36
4.2 Network technology planning 40
4.3 Network deployment 41
4.4 Key enabler organisational functions 43
5 Operational and financial multi-year forecasts 46
5.1 Premises Ready for Service (RFS) 47
5.2 Underserved areas 49
5.3 Premises Activated 50
5.4 ARPU and speed tier mix 51
5.5 Subscriber payments and operating costs 51
5.6 Capital expenditure 52
5.7 Long-term financial outlook 54
5.8 Sources of funding 55
5.9 Subsidiaries 56
6 Risk management 58
6.1 Risk management framework 58
6.2 Overview of risks 59
6.3 Risk details and mitigation 60
glossary 64
© 2016 nbn co limited | Corporate Plan 2017 1
Legal notice
Introduction achievements to be materially different
from any future results, performance or
This 2017 Corporate Plan has been achievements expressed or implied by
prepared by nbn co limited (nbn or the the Estimates.
Company) for its shareholder ministers,
Senator the Hon Mitch Fifield and While the Estimates are based on the
Senator the Hon Mathias Cormann best considered professional
(Shareholder Ministers) as required by assessment, the management team and
the Public Governance, Performance officers (as defined in the Corporations
and Accountability Act 2013 (Cth) Act) of nbn do not give any guarantee
(PGPA Act) (in particular section 35(1) or assurance to any third party that the
(b) and 95(1)(b) of the PGPA Act), the results, performance or achievements
Public Governance, Performance and expressed or implied by the Estimates
Accountability Rule 2014 (Cth) (PGPA will actually occur, and such Estimates
Rule), the Commonwealth Government should not be relied on or considered to
Business Enterprise Governance and be a representation of what will happen
Oversight Guidelines (August 2015) (GBE by any third party.
Guidelines) and Australian Government
policy as communicated to nbn by the Other than as required according to
Commonwealth from time to time Reporting Obligations, nbn and its
(together, Reporting Obligations). officers have no obligation to update
the Estimates based on circumstances,
The reporting periods covered by this developments or events occurring after
plan are FY17 to FY20 inclusive. The first the publication date of this document.
reporting period covered by this plan is
FY17. The fourth, and last, reporting This plan also contains Estimates in
period covered by this plan is FY20. respect of periods after 30 June 2020,
including in section 5.7 (Long-term
Disclaimer financial outlook). Management and the
Board do not give any guarantee or
This plan contains various long-range assurance that the results, performance
plans, projections, high level estimates or achievements expressed or implied
and other forward looking information by such Estimates will actually occur.
(Estimates). Those Estimates are based
on the best considered professional © 2016 nbn co limited
assessment of present economic and ABN 86 136 533 741
operating conditions, present Australian All rights reserved.
Government policy, and a number of
assumptions regarding future events
and actions which, at the date of this ‘nbn’, ‘Sky Muster’, ‘bring it on’, and the Aurora
device are trademarks of nbn co limited.
document, are expected to take place.
The Estimates involve known and
unknown risks, uncertainties and other
factors beyond control that may cause
nbn’s actual results, performance or
2 © 2016 nbn co limited | Corporate Plan 2017
© 2016 nbn co limited | Corporate Plan 2017 3
4 © 2016 nbn co limited | Corporate Plan 2017
Part A
Plan Outline
© 2016 nbn co limited | Corporate Plan 2017 5
6 © 2016 nbn co limited | Corporate Plan 2017
About
nbn
nbn was established in 2009
to design, build and operate
Australia’s new high-speed
broadband network. Underpinned
by a purpose to connect Australia
and bridge the digital divide,
nbn’s key objective is to ensure
all Australians have access
to fast broadband as soon as nbn is wholly-owned
possible, at affordable prices, by the Commonwealth
and at least cost. of Australia
To achieve this objective, nbn has been
structured as a wholesale-only, open-
access broadband network available on
equivalent terms to all access seekers.
This is intended to level the playing
field in Australian telecommunications,
creating real and vibrant competition
within the industry.
nbn is a Government Business
Our goal
Enterprise (GBE) incorporated under is to activate
the Corporations Act 2001 and pursuant
to the PGPA Act.
8 million
homes and
businesses
by 2020
© 2016 nbn co limited | Corporate Plan 2017 7
Connecting Australia
and bridging the
digital divide
nbn exists to construct and It will be the nation’s first national
operate Australia’s high-speed wholesale-only, open-access broadband
network with a commitment to deliver
broadband network. It is the access to at least 25 megabits per
most comprehensive and largest second (Mbps) downstream to all
infrastructure development in premises and at least 50 Mbps
Australia’s history, using world- downstream to 90 per cent of fixed line
class technologies to provide premises.1 This ambition for universal
connectivity is unique to Australia
access to fast broadband to every considering its expansive geography
home and business in Australia. and population.
nbn’s goal is to activate eight
million homes and businesses
by 2020.
8 © 2016 nbn co limited | Corporate Plan 2017Enabling an exciting future for Building momentum to deliver high-
all Australians speed broadband to all Australians
The nbnTM network will allow Australia In FY16 the number of premises Ready
to unleash its full digital potential. It will for Service (RFS) more than doubled
transform the nation and fundamentally to 2.9 million – 138 per cent growth
enable Australia to become a more on the previous year. Activations also
connected, more competitive, and more than doubled with 1.1 million
more innovative nation. premises now activated – 126 per cent
growth on the previous year.
It will help bridge the digital divide
between city and country; young and This reflects strong growth in the
old; and Australia and the rest of the company’s capacity to scale and deliver.
world. Of the rollout completed at the Challenges, however, remain with the
end of FY16, 70 per cent is in non-metro continued scaling of RFS and activation
and regional Australia aligned with nbn’s capacity over the next two years.
purpose to connect Australia and bridge
the digital divide. This is underpinned by
the continued progression of the fixed
line and Fixed Wireless programs and the
launch of Sky MusterTM satellite services.
This vital infrastructure will help
change the way businesses operate
and how people live their lives,
connecting people, promoting social
inclusion and equal opportunity.
It enables the use of new technologies
and applications, stimulating
At peak, a new home
improvement and innovation across or business is forecast
a wide range of industries such as to be activated
every 3
education, health, entertainment, media,
commerce and community services.
seconds
World-class network technology 2
The nbnTM network comprises world-
class technologies that are designed to
significantly lift broadband capability
across Australia.
By 2020, the use of these technologies
are projected to deliver beyond nbn’s
minimum commitments. It is intended
that nearly half of the fixed line footprint
will have the potential to access Gigabit
wholesale services and the majority able
to access 50 Mbps or better.
The nbnTM network is being built to meet
today’s needs, while including capacity
and upgrade paths to allow for future
evolution in demand.
1 The nbnTM network is being designed to provide these peak speeds to nbn’s Retail Service Providers
at nbn’s network boundary.
2 Based on an eight hour working day and five day working week.
© 2016 nbn co limited | Corporate Plan 2017 9Momentum has been
established in FY16
Sky MusterTM Major HFC
satellite delivery
product agreement
launch in executed
April 2016 with Telstra
More than
HFC product
one in four
launch in
can order an
June 2016
nbnTM service
One new
activated Established
60
household or three key
business every operating
12 seconds agreements
in FY162
Today, nearly
two thirds
Fibre to
of the nation
the Node
are in design,
launched in
construction
September
or already
2015
eligible for an
nbnTM service
2 Based on an eight hour working day and five day working week.
10 © 2016 nbn co limited | Corporate Plan 2017Pursuing
unprecedented scale
Construction rate to more than
double from FY16 to reach
peak in FY18
Incremental premises made RFS
4.0 3.7m
1.7million
3.5
3.0 2.5m
2.5 2.1m
2.0 1.7m
1.5
premises made Ready 1.0 0.6m 0.7m
for Service in FY16. 3.0x 0.5
0.0
as many as in FY15 FY15 FY16 FY17 FY18 FY19 FY20
Premises activated to grow more
than three times from FY16 to FY18
nearly doubling year-on-year
Incremental premises activated
2.5m
2.5
2.1m
More than 2.0
600,000
1.5 1.2m 1.2m
1.0
0.6m
0.5 0.3m
premises activated in FY16.
0.0
2.2x as many as in FY15 FY15 FY16 FY17 FY18 FY19 FY20
By FY20, revenue will have
grown by 12 times on FY16
Annual Revenue $5.0b
5
FY16 revenue 4 $3.7b
up 157% to 3
$421m
$1.9b
2
$0.9b
1 $0.4b
$0.2b
0
compared to FY15 FY15 FY16 FY17 FY18 FY19 FY20
© 2016 nbn co limited | Corporate Plan 2017 11Deploying world-class
network technology
FTTP – Fibre-to-the-Premises FTTN – Fibre-to-the-Node
FTTP deploys fibre optic cable to the FTTN deploys fibre into neighbourhoods
household or business. As at 30 June and then leverages existing copper
2016, 1.4 million FTTP premises are RFS. infrastructure to the premises. This
FTTP will continue to be deployed to reduces the time and cost associated with
new developments through the local network and lead-in construction.
Greenfields program.
Since the launch in September 2015,
End users with a strong interest in fibre 663,000 premises are RFS on the
are offered the Technology Choice FTTN network.
program which provides end users
the option to switch access technology Current service offerings are up to 100/40
at their expense. Mbps, although observed speeds reflect
purchased speed tiers.
Current wholesale service offerings
are up to 1 Gbps/400 Mbps. HFC – Hybrid Fibre Coaxial
FTTB – Fibre-to-the-Basement3 HFC technology leverages existing
fibre and cable networks to deliver
FTTB deploys fibre optic cable to the fast broadband.
basement of a building, utilising existing
wiring in the building for connections to In June 2016, HFC commercial services
apartments or offices eliminating the were launched in Redcliffe, Queensland.
need for in-building design and End users experienced trial speeds of
construction works. up to 100/40 Mbps.4
FTTB allows multi-dwelling units, DOCSIS 3.1 will provide capability to
such as apartment complexes and office increase wholesale download speeds
blocks, to receive fast broadband with of up to 1 Gbps.
current wholesale services offering up
to 100/40 Mbps. As at 30 June 2016,
FTTB has been deployed to more than
900 buildings.
3 FTTB is included in FTTN statistics throughout the Corporate Plan.
4 Experience and Trial Speed Disclaimer: end-user experience, including speeds actually achieved,
depends on the nbnTM technology used and factors outside nbn’s control like your broadband plan,
provider, equipment and software. Trial speeds were achieved by end users in the context of a trial
and may not reflect nbn’s wholesale speed tiers or the speeds that will be experienced by end users.
12 © 2016 nbn co limited | Corporate Plan 2017Bringing
world-class fast
broadband to
rural, regional
and remote
Australians.
5,6
Fixed Wireless Satellite
nbn’s Fixed Wireless service enables nbn’s satellites will be among the
high-speed broadband to be extended world’s largest and most advanced
to Australians outside the reach of the communication satellites. Their
fixed line network. This world-class combined capacity will be 135 Gbps,
technology provides access to more than 30 times the capacity of the
wholesale speeds of up to 50/20 Mbps. interim satellite service. Sky MusterTM,
the first of the two dedicated satellites,
The Fixed Wireless network is was ranked “world leader” in a report
recognised as a leader in terms of comparing 18 international broadband
speed, data allowances and affordability service providers based on its
when compared to similar networks performance and affordability.6
in other countries.5
In April 2016, nbn launched Sky MusterTM
Network deployment is mature. Users commercial services through RSPs. The
of the technology are among the most satellite service is a game changer for
satisfied nbnTM network users with 75 per rural and remote Australians, providing
cent Advocacy at June 2016, a measure access to wholesale speeds of up to 25/5
of users who have already recommended Mbps for Sky MusterTM satellite end users.
the nbnTM network to family, friends or
colleagues. This measure is reflective
of end-user experience across both
the Retail Service Provider (RSP) and
nbnTM networks.
5 Ovum: “Fixed Wireless Broadband: A global comparison”, 10 July 2015.
6 Ovum: “Satellite Broadband: A global comparison”, 28 April 2016.
© 2016 nbn co limited | Corporate Plan 2017 1314 © 2016 nbn co limited | Corporate Plan 2017
Adopting innovative
technologies
A dynamic and rapidly changing Technological innovations to serve
environment future demand
Technological progress, changing FTTP
end-user behaviour and increasing • ‘Next Generation Passive Optical
demand are transforming Australia’s Network’ (NG-PON) standard provides
society and connectivity needs. the opportunity to increase maximum
Uncertainty in future demand stems speeds from 1 Gbps to 10 Gbps.
from the changing ways in which FTTN
consumers use data and the extent to
• G.fast standard, an evolution from
which usage trends become mainstream.
VDSL2, provides potential speeds
Possible drivers of future demand are
of up to 1 Gbps7
increased proliferation of connected
devices, growth in video streaming and • Fibre to the Distribution Point (FTTdp)
new applications. The future is limitless, is a variant of FTTN, which deepens
with virtual reality applications, self- fibre into the network and leverages
driving vehicles, and internet-connected existing copper for the lead-in. FTTdp is
devices potentially growing in demand. currently being trialled, with download
speeds observed around 100 Mbps,
Many of these trends are emerging and
which could be up to 1 Gbps when
currently in early stages of development,
combined with G.fast.*
with the full extent and timing of impact
remaining uncertain. HFC
In order to balance continuous • Full Duplex DOCSIS 3.1 (FDD) is the next
technological progress and changing evolution of DOCSIS 3.1, and will enable
end-user demand, the nbnTM network the full symmetric use of the HFC plant
is being built to provide flexibility spectrum for both upstream and
around upgrade pathways to cater downstream transmission. This will allow
for this evolution. the HFC network to match fibre services
with multi-gigabit speed tiers (1 Gbps+
A pipeline of innovation is continuously downstream, and 400 Mbps upstream).
being tested. New technology creates
opportunity to deliver future network Fixed Wireless
requirements when they become • Fixed Wireless network throughput can
commercially viable. be increased to offer up to 250 Mbps
by aggregating multiple radio carriers.
Throughput can be increased beyond
250 Mbps in a number of ways, such as
using more radio spectrum or increased
efficiencies in spectrum management.
Satellite
• New Satellite technology with 10x
capacity increases becoming available.
7 Dependent on distance from the premises to the node.
* Refer to disclaimer on page 12.
© 2016 nbn co limited | Corporate Plan 2017 15Enabling a vibrant
retail market
Success is underpinned by successful Focused on improving service to RSPs
retailers
nbn has been working on improving
nbn’s products are constructed to allow the service and engagement with
RSPs flexibility to tailor residential and RSPs through continuous industry
business solutions that best meet consultation to refine processes.
individual end-user needs.
New products and additional features
A single broadband product construct will continue to be launched over time,
has been developed across fixed line, developed in close consultation with RSPs.
fixed wireless and satellite technologies
to make the product set technology- The Customer Experience Metric is
agnostic. The product construct offers tracking favourably, meeting a metric
peak wholesale downstream speeds of 7.2 out of 10 (FY16), up from 6.6
ranging from 12 Mbps up to 1 Gbps and (FY15). Implementation of continuous
upload speeds ranging from 1 Mbps to improvement programs aim to reach
400 Mbps. 8 out of 10 by 2020.
Currently more than 50 RSPs are able to
provide broadband to their customers
on the nbnTM network, with more RSPs
engaged indirectly.
16 © 2016 nbn co limited | Corporate Plan 2017Satisfying end users
Meeting the needs of Australian Overall Satisfaction from users across
broadband users all products is now 7.1 out of 10.
The nbnTM network is unlocking previous nbn’s Advocacy, a measure of users who
capacity constraints and changing have already recommended the nbnTM
consumer behaviours. nbnTM network network to family, friends or colleagues
end users download 34 per cent more is at 65 per cent, the same as 12 months
than the Australian Bureau of Statistics ago. This measure is reflective of end-
(ABS) national average, as at 31 user experience across both the RSP
December 2015. 8 and nbnTM networks.
Customers have reliable access to the
network with uptime at 99.9 per cent
across the entire network.
8 ABS 2015.
© 2016 nbn co limited | Corporate Plan 2017 17Dedicated people making
nbn a reality
nbn aspires to be one of the This is translating into an engaged
best places to work in Australia. workforce with the most recent employee
Engagement Score at 68 per cent, up
Behind nbn stands a talented, multi- 17 percentage points from 51 per cent last
disciplinary team from a wide range year. This puts nbn in the top quartile of
of backgrounds and experiences. businesses in Australia and New Zealand
Diverse teams are working in the field, for employee engagement scores.
in operations centres and in state and
head offices. Voluntary turnover is favourable at 7.7
per cent compared to the global industry
The Management team aims to provide average of 11.0 per cent as at June 2016.9
an environment that encourages people
to perform at their best. Inspirational At nbn we want to continue to create
leadership, a collaborative culture a diverse and inclusive workplace
and growth in talent is at the heart that accepts, respects and leverages
of nbn’s progress. differences. nbn is committed to
embracing diversity to help improve
business results, create a high-
performing culture and attract
and retain talented people.
9 Aon Hewitt 2016 Telecommunications and General Industry Survey.
18 © 2016 nbn co limited | Corporate Plan 2017Board and Management’s
message
Over the past year, nbn has gained • the successful launch of HFC
solid momentum in building a commercial services in June 2016.
world-class broadband network By the end of FY20, our goal is for all
for all Australians by 2020. Australians to have access to the nbnTM
network, with a forecast 11.9 million
This comprehensive plan details how we premises Ready for Service and 8 million
will deliver on nbn’s 2020 commitment, homes and businesses actively using
and follows on last year’s plan. As we the network.
expand into more areas of Australia,
our knowledge increases along with the To achieve this, significant work is
quality of planning. We are proud to say required to build upon the progress that
that we exceeded our FY16 targets, with has been made over the last two years.
the company recording nine consecutive The unprecedented scale and
quarters of meeting our goals. complexity facing the business means
that the next two years will be critical
nbn’s purpose remains to connect in delivering our plan.
Australia and bridge the digital divide.
Exponential growth is required to
Key achievements during FY16 include: achieve the targets, and FY17 is forecast
• more than doubling the Ready to see the biggest growth yet:
for Service footprint, enabling • by June 2017, nearly half of Australia
2.9 million homes and businesses will be able to order a service
to access the network
• the construction and activation rates
• more than doubling the number of need to almost double
active premises; 1.1 million premises
are now using the network • the HFC program will scale
exponentially
• doubling revenue to $0.4 billion
in FY16 from $0.2 billion in FY15 • the second satellite Sky MusterTM II is
scheduled for launch in October 2016.
• the successful launch of commercial
FTTN products in September 2015 We look forward to growing the
conversation in the community about how
• the successful launch of the Sky the nbnTM network can be leveraged to
MusterTM satellite in October 2015 unlock Australia’s digital potential.
• the successful launch of Sky MusterTM
commercial services in April 2016
Dr Ziggy Switkowski AO Bill Morrow
Chairman Chief Executive Officer
© 2016 nbn co limited | Corporate Plan 2017 19nbn’s Management team
Experienced leadership team behind nbn.
Bill Morrow Stephen Rue John Simon
Chief Executive Officer Chief Financial Officer Chief Customer Officer
Appointed in December Appointed in July 2014 Appointed in
2013, effective April 2014 January 2013
Mr Morrow is well known Prior to joining nbn, Mr Simon is an
for his global experience Mr Rue spent 17 years established executive
in leading complex in various leadership roles in the converged ICT
turnarounds and as at News Corp Australia market, with over 30
one of the global including a decade as years’ experience.
telecommunications Chief Financial Officer.
industry’s most Prior to nbn, Mr Simon
experienced executives. He also served as a spent the previous 11 years
Director on a number working for Singtel Optus
Prior to nbn, he served of associated boards in various roles across
as CEO of Vodafone including Foxtel, Fox strategy, product and
Hutchison Australia Sports, REA Group sales management and
in Sydney and CEO of and Australian customer experience.
Clearwire Corporation Associated Press.
in Seattle.
20 © 2016 nbn co limited | Corporate Plan 2017Brad Whitcomb Peter Ryan Maree Taylor
Chief Strategy and Chief Network Chief People
Transformation Officer Engineering Officer and Culture Officer
Appointed in May 2014 Appointed in December 2015 Appointed in May 2014
Mr Whitcomb has Mr Ryan has solid Ms Taylor is an
successfully architected experience in engineering experienced Human
a number of high-profile and deployment of Resources professional
business transformations networks nationally and with more than 25 years
in the telecommunications overseas, in addition to of corporate and
and energy sectors. operational management consulting/coaching
experience and proven experience.
Prior to nbn, Mr project discipline.
Whitcomb was the Chief Prior to nbn, Ms Taylor
Strategy and Business Prior to joining nbn, Mr held senior executive
Transformation Officer Ryan worked at Vodafone roles including Head
at Vodafone Hutchinson for 15 years in Australia, of Human Resources
Australia. Kenya and the UK, and at Origin, CSC Australia,
at Maunsell Australia Pty and Apple Asia Pacific.
Ltd. His career has
spanned across network
engineering, technology
deployment and service
operations.
© 2016 nbn co limited | Corporate Plan 2017 21nbn’s Management team (cont.)
JB Rousselot Justin Forsell John McInerney
Chief Network Chief Legal Counsel Chief Information Officer
Operations Officer Appointed in Appointed in
Appointed in October 2013 March 2010 December 2012
Mr Rousselot brings to Mr Forsell is an Mr McInerney is an
the business over 15 years’ experienced legal experienced technology
experience in the practitioner with over practitioner with over
telecommunications sector. 18 years in-house 20 years’ experience.
experience.
He has previously held Prior to nbn,
senior roles at Telstra Prior to nbn, Mr Forsell Mr McInerney was Vice
including the Executive was General Counsel, President at HP across
Director of Voice, Company Secretary and Asia Pacific and Japan
BigPond and Media. Head of Governance at and Group CIO at Telstra
Vodafone Australia. where he led one of the
largest technology
transformation projects
in Australia.
22 © 2016 nbn co limited | Corporate Plan 2017© 2016 nbn co limited | Corporate Plan 2017 23
24 © 2016 nbn co limited | Corporate Plan 2017
Part B
Corporate Plan
© 2016 nbn co limited | Corporate Plan 2017 251. Corporate Plan
summary statement
Last year, Management prepared The Corporate Plan 2017 builds on the
nbn’s first cross-functional foundations established last year and
is based on new operational experience
Corporate Plan using an gained throughout FY16 as well as
integrated planning process. further strategic decisions, updated
This plan was the basis of how financial and market analysis and
nbn would achieve its goals. operational planning.
It was based on detailed strategic Since Corporate Plan 2016, nbn has
and financial analysis and more than doubled the number of
integrated operational planning. premises Ready for Service (RFS)
to 2.9 million – 138 per cent growth
from the previous year, and increased
premises activated to 1.1 million –
126 per cent growth. At the same time,
nbn hit a number of milestones and
gained significant experience, reducing
key uncertainties.
26 © 2016 nbn co limited | Corporate Plan 2017The performance of the company –– second tranche of construction
is underpinned by a number of key contracts have been awarded to
milestones achieved in FY16: deliver flexibility, incentives and
competition for the rollout of the
• successful launch of FTTN in nbnTM network.
September 2015 and scaling of FTTN
deployment, with 663,000 premises While FY16 represents strong growth
now RFS in the company’s capacity to scale
and deliver, challenges remain ahead.
• the first of two dedicated satellites, Premises RFS need to almost double
Sky Muster,TM has been launched with in FY17 and again in FY18. Activated
the first Sky MusterTM services premises need to nearly double year-on-
activated in April 2016 year for the next two years. This is
• commercial launch of HFC following particularly challenging considering
successful end-user and construction the extraordinary scope and complexity
trials in Redcliffe, QLD of the nbnTM network rollout.
• nbn has strengthened its relationships Progress in FY16 has provided more
with the industry by improving the data with which to forecast, but
way it collaborates and structures considering the scale and complexity
its agreements: of the network build, much uncertainty
remains. The plan continues to support
–– delivery agreement signed with a peak funding base case forecast of
Telstra to leverage their experience $49 billion, and a range of $46 billion
in HFC design and construction to to $54 billion. This is a narrower range
scale the program than last year, reflecting a reduction in
uncertainty as the nbnTM network is
–– Operations and Maintenance Master rolled out. As in the Corporate Plan
Agreements have been signed with 2016, forecast completion of the nbnTM
three regional partners to activate network rollout is by 2020.
premises and assure the network,
ensuring a fast and reliable Key operational and financial metrics
broadband network are summarised in the following table.
Table 1: Key operational and financial metrics
FY16(A) FY17 FY18 FY19 FY20
$ billions (unless otherwise stated)
Premises RFS (millions) 2.9 5.4 9.1 11.2 11.9
Premises activated (millions) 1.1 2.3 4.4 6.9 8.1
Revenue 0.4 0.9 1.9 3.7 5.0
EBITDA before
subscriber payments (1.3) (1.2) (0.4) 1.1 2.2
EBITDA (1.9) (2.6) (3.2) (2.0) 0.7
Capital Expenditure (4.7) (6.1) (5.9) (3.3) (1.9)
Cash flow (7.1) (9.2) (10.0) (6.6) (2.5)
Note: The numbers presented in this table correspond to the base case consistent with the ranges
represented in Table 2 but may vary significantly over time.
Operating expenses and EBITDA are non-GAAP measures. For corporate planning and internal reporting
purposes, management treat certain payments for leasing assets as operating expenses. For statutory
reporting purposes in quarterly and annual reporting, these payments are treated as finance leases and
accordingly are capitalised and amortised over a 35 year period.
© 2016 nbn co limited | Corporate Plan 2017 271. Corporate Plan summary statement (continued)
The plan is based on operational and • management of partners:
financial forecasts representing best operationalising contractual
estimates and information to date. agreements and realising intended
While certain aspects of the plan have benefits while managing the risk
been de-risked through reducing key associated with significant
uncertainties, significant risks and dependence on third parties
challenges remain. Critical assumptions
on scope, cost and timing are continuously • competition, revenue and regulatory:
refined with further in-field experience. the achievement of forecast revenue
and activation rates while adapting to
In preparing this plan, Management the evolving regulatory environment,
has analysed and assessed the most competing against infrastructure
significant challenges and the potential providers and encouraging
impact they might have on the rollout competitive dynamics among RSPs.
schedule and peak funding requirements.
These risks can be categorised in the Where feasible, these risks have been
following main themes: assessed and reflected in the delivery
timing and peak funding range.
• meeting the scale challenge: nbn’s
ability to achieve the next level of
organisational maturity required to
manage the process complexity,
resource contention and delivery of
automation to achieve the overall plan
raises a number of key challenges. This
includes the ability to activate, operate
and maintain the nbn footprint at scale
across Australia in a safe and
environmentally responsible manner, in
line with publicly-communicated targets
28 © 2016 nbn co limited | Corporate Plan 2017© 2016 nbn co limited | Corporate Plan 2017 29
2. Background,
performance
and objectives
2.1 Background 2.2 Strategic imperatives
In 2009, nbn was established to build
and operate Australia’s first ever national,
wholesale-only, open-access broadband
network. nbn’s objective is to ensure all
Australians have access to fast broadband
as soon as possible, at affordable prices, nbn’s ultimate objective is to connect
and at least cost to taxpayers. Australia to broadband, bridging the
current digital divide between
To give greater clarity to the program, Australians, and between Australia
the Government has set out a Statement and other economies worldwide. Its goal
of Expectations dated 8 April 2014 (SoE), is to activate eight million homes and
which provides, among other things, that: businesses by 2020. In order to fulfill this
goal, nbn has five strategic imperatives:
• to minimise cost and increase speed of
deployment, the rollout should allow • build a united partnership with vendors,
for a combination of technologies Delivery Partners (DPs) and RSPs
• the nbnTM network is intended to be a • build affordable products and services
wholesale-only access network, available
on equivalent terms to all access seekers • build a high-performing, reliable network
• the design of the nbnTM network will • build effective and efficient processes
be guided by the Government’s policy and systems
objectives of providing access to • make nbn a great place to work.
download data rates of at least 25 Mbps
to all premises and at least 50 Mbps
to 90 per cent of fixed line premises
as soon as possible10
• nbn has flexibility and discretion in
operational, technology and network
design decisions, within the constraints
of a public equity capital limit of
$29.5 billion.
10 The nbnTM network is being designed to provide these peak speeds to nbn’s Retail Service Providers
at nbn’s network boundary.
30 © 2016 nbn co limited | Corporate Plan 2017© 2016 nbn co limited | Corporate Plan 2017 31
2. Background, performance and objectives (continued)
2.3 Performance to date
nbn has continued to build momentum through FY16. The achievement of key
financial and operational objectives has been complemented with improved
relationships with industry partners and RSPs, an increase in staff engagement
and positive end-user experience.
Exhibit 1: Deploying the network Exhibit 2: Connecting premises
Cumulative RFS (’000) Cumulative activations (’000)
2,893
3,000
Actual 2,632
1,200
Actual 1,099
955
2,500 Corporate Plan 2016 1,000 Corporate Plan 2016
2,000 800
1,500 1,213 600 486
1,000 400
652
211
500 200
0 0
FY14 FY15 FY16 FY14 FY15 FY16
• 2.9 million premises now RFS, • 1.1 million premises now activated,
more than double the amount in more than double the amount in
June 2015 representing 25 per cent June 2015.
of the target footprint
• nearly two thirds of the footprint is
either in the design and construction
pipeline or RFS.
Exhibit 3: Generating revenue
Annual Revenue ($m)
500
Actual
421
400 Corporate Plan 2016
300
300
200 164
100 61
0
FY14 FY15 FY16
• $0.4 billion in total revenue generated
in FY16, with a monthly ARPU of $43
as at 30 June 2016
• actively engaging over 50 RSPs
• double the number of end users.
32 © 2016 nbn co limited | Corporate Plan 20172.4 Objectives ahead
While nbn is gaining momentum, the • increase industry workforce capacity,
organisation faces several challenges nbn IT capabilities, and end-to-end
across multiple dimensions, including the operations ability to deliver on
scale and scope of build, activation and these targets
delivery, and public scrutiny. To put these
challenges into perspective, in the years • lead and grow the organisation to
ahead the organisation will need to: manage the critical construction
period, while transitioning the
• grow the RFS footprint four times company to a primarily network
from 2.9 million to 11.9 million by FY20; operations business.
nearly doubling the footprint in FY17
to achieve 5.4 million premises RFS, There are many critical interdependencies
and growing significantly again in FY18 between these and other activities that
to achieve 9.1 million premises RFS will need to be managed and delivered
in parallel, particularly during the course
• increase the number of premises of the next four years of this plan.
activated nearly eight-fold from 1.1
million to 8.1 million by FY20; doubling The mandate continues to present a unique
activations to reach 2.3 million in FY17, challenge – an unprecedented project
and then nearly double again to of scale, scope, speed and complexity.
4.4 million in FY18
• coordinate with multiple RSPs to
deliver on revenue forecasts including
increases in ARPU, usage and speed
tier mixes, and a competitive business
segment proposition
© 2016 nbn co limited | Corporate Plan 2017 333. Market overview
3.1 Market trends
Significant technological progress never seen before. The below key
and ever-changing end-user demands demand and supply factors are expected
continue to shape the broader to influence the market over the short-
telecommunications sector at a pace to-medium term:
Exhibit 4: Key technological demand and supply factors
Demand Factors Supply Factors
Bandwidth heavy Technology
services innovation
UHD (4K and 8K) New telecommuni-
and 360-degree cation standards
video, virtual and (e.g. G.fast,
augmented reality NG-PON2)
Service quality / Ultra fast, efficient
guarantee devices
Willingness to pay Low-power devices
for guaranteed data (e.g. Bluetooth,
speeds and usage Low-Energy), faster
quality interconnects
Cloud networking Network Advanced data
capacity compression
Always on, always
planning
connected, always Compression-driven
synced network capacity
enhancements
Ubiquitous coverage Optimised
Ubiquitous network design
connectivity Software-defined
requirements networks, distribut-
regardless of ed caching, intelli-
delivery medium gent edge switching
Connected world Alternative
Proliferation of technologies
devices, machine Fixed wireless
-to-machine, (e.g. 5G lead-ins)
Internet-of-things
(IoT)
34 © 2016 nbn co limited | Corporate Plan 2017Based on the above trends, data demand The retail market is largely shared among
is forecast to continue to grow at 30 per four RSPs, with further consolidation
cent or more year-on-year to 202011 and through TPG’s acquisition of iiNet, the
throughput requirements are forecast merger of Vocus and M2, and the
to increase (both download and upload), acquisition of Nextgen by Vocus.
particularly in the home, as some end
users look to use multiple sets of devices RSPs have introduced a wide variety of
and applications simultaneously, and in nbnTM product offers to the market, with
some cases, continuously. the trend of increasing data allowances
across their broadband plans and
The Internet of Things is still in its bundled product offerings as the key
infancy, but the diverse and expanding strategy for customer acquisition.
set of applications is expected to be A number of RSPs have introduced
the backbone of the fourth industrial ‘unlimited’ data plans to the market.
revolution and lead to a further step-
change in connectivity. The longer-term Subscription Video on Demand services
introduction of 5G mobile technology, have already had a significant impact
which is expected to offer significant on data consumption in Australia, most
improvement in performance over noticeably following the introduction of
today’s 4G mobility products, will bring Netflix in March 2015. From March 2015
additional connectivity competition to June 2016, the average data
to the market along with opportunities consumption per household on the nbnTM
for nbn. network grew by ~59 per cent to 137 GB
(download and upload) per month.
3.2 Australian market New challengers could leverage their
core customer service strengths to offer
overview viable alternatives, and tailor innovative
The Australian fixed connectivity sector offerings to grow their market share as
is transforming as customers migrate the nbnTM network reaches scale. Direct
to the nbnTM network and revenue shifts fixed line infrastructure competition in
from fixed line voice services. Across the Brownfields residential sector
Australia, total penetration of broadband continues, as incumbent
has grown to 73 per cent12 of households telecommunications providers extend
with an average speed of 8 Mbps,13 and leverage their existing fibre network
of which the nbnTM network currently assets to provide wholesale FTTB
accounts for approximately 15 per cent products. In the Greenfields residential
of active connections. sector, multiple infrastructure providers
continue to operate alongside nbn.
11 nbn analysis based on research from industry organisations.
12 ABS 2015.
13 Akamai’s state of the internet Q4 2015 report.
© 2016 nbn co limited | Corporate Plan 2017 354. Operating plan
Management has prepared its 4.1 Product and customer
second cross-functional plan, strategy
with awareness of known
The purpose of the product and customer
challenges, execution fronts strategy is to provide high-speed
and interdependencies facing ubiquitous products at affordable prices
the implementation of the nbnTM to all Australians. This is achieved through
network. This version of the plan providing a wholesale network available
has been refined based on an on equal terms to all access seekers.
additional year of experience and Wholesale product construct
will continue to evolve over time.
nbn has built its core product offering
around the nbnTM Ethernet product,
a technology-agnostic solution. It
separates the choice of network
deployment technology from the RSP
and end user. Regardless of the access
technology, an RSP can offer products
and services to its end users in a
consistent manner, reducing the need
to develop customised products and
processes. This enables RSPs to build
a diverse range of products for the
residential and business segments across
36 © 2016 nbn co limited | Corporate Plan 2017a range of access technologies and each premises based on a range of
product components, ordered under wholesale speeds from 12 Mbps to
nbn’s Wholesale Broadband Agreement. 1 Gbps downstream and 1 Mbps to
400 Mbps upstream.
The end-to-end nbnTM product construct
is made up of two key components: 2. Connectivity Virtual Circuit (CVC):
in the second part, the AVCs are
1. Access Virtual Circuit (AVC): in the routed through the nbnTM network
first part of the product construct, to the Point of Interconnect (POI)
the end user connects to the nbnTM where the RSP connects to
network via a suitable User Network the network. CVC is provisioned
Interface element. This connection on an aggregate basis across all
constitutes an AVC – a virtual premises per RSP for a specific
network element that represents the POI and dimensioned by the RSP
access connection to the end-user based on the RSP’s network
premises. An AVC is provisioned for contention strategy.
Exhibit 5: Product construct
User Network Interface
SATELLITE
Network Access
Termination Virtual
Device Circuit
End-User Premises
User Network Interface
WIRELESS
Access
FIXED
Network
Termination Virtual NETWORK-
Device Circuit CONNECTIVITY TO-NETWORK
End-User Premises VIRTUAL CIRCUIT INTERFACE
User Network Interface
Network Access
HFC
HFC
Termination Virtual
Device Circuit
End-User Premises
User Network Interface
FTTN/B/dp
First Socket (SDU) Access
COPPER Virtual
MDF (MDU) Circuit
End-User Premises
Point-of-Interconnect
User Network Interface
Network Access
FTTP
Termination FIBRE Virtual
Device Circuit data ports voice ports
End-User Premises
Product roadmap nbn also operates a Product Development
Forum as a consultation mechanism with
nbn maintains an Integrated Product RSPs and relevant Consumer Advocacy
Roadmap which sets out the expected Groups, providing a pathway to influence
product development pipeline over the nbn’s product development pipeline.
next three years, available on the nbnTM
website. The aim is to provide RSPs and nbn supports RSPs in the provision
industry with a clear view of the expected of services to business end users by
upcoming releases in nbn’s product providing optional product features
portfolio. This allows them to prepare which can be combined to build
their own product developments, business offerings, including:
marketing and workforce.
© 2016 nbn co limited | Corporate Plan 2017 374. Operating Plan (continued)
• higher speed TC-1 & TC-2 for multi-line • Cell Site Access Service: providing
voice and symmetric data applications: support for mobile telephony
a range of symmetric Committed operators to use nbnTM network
Information Rate (CIR) products to capacity to route mobile voice and
support business applications such data back to a telecommunications
as video conferencing, virtual private operator’s own network.
networks and similar business
connectivity solutions Where permissible within the constraints
of the regulatory environment and
• enhanced service levels: a range of Statement of Expectations, nbn
enhanced service level options for continues to evaluate and prototype
service assurance in the event of a fault. additional product and service offerings
to explore opportunities to leverage its
nbn seeks to maximise the value of its network and technology assets.
network infrastructure by developing
complementary product offerings such as: Customer and end-user strategy
• Technology Choice: a program which The product and pricing strategy aims to
allows individuals and groups to co-fund balance the financial requirements of nbn
the construction of an alternate access with the overall health of the broadband
technology. The Technology Choice Area ecosystem. To achieve that ambition,
Switch program was launched in April nbn has identified two key segments:
2015 and the Individual Premises Switch
capability was released in September • Residential Services
2015, with RSPs now able to apply for
technology amendments for end users • Business Services.
Exhibit 6: Product, Pricing, Network Deployment and Marketing Strategy
Goal Sustainably optimise revenue
Market segments Residential Segment Business Segment Incremental Revenue
Optimise residential revenue Optimise business revenue Leverage existing network
by supporting early service by providing product and and technology assets to
migration and adoption of operational capability to create new products and
higher speed tiers support business needs service offerings
Strategy Elements Product Pricing Network Marketing
• Consistent • Consistent Product Deployment • nbn marketing
Product Pricing: pricing • Delivery of RFS to drive
Construct: to independent footprint awareness,
simplify RSP of each access • Footprint interest and
processes and technology14 provided in large, intention to
operations • Two-part Pricing: contiguous and migrate
• Configurable provides RSP marketable areas • Cooperative
Product flexibility to • Deployment marketing
Components: manage content across both programs
speeds, capacities, and end-user residential with RSPs and
traffic classes experience and business channel partners
• Configurable • Dimension-based premises, and in to support
Service Levels: CVC Pricing: complex premises migration
optional enhanced stimulate network • Marketing
service levels to usage growth analytics and
support business while improving feedback to
• Consistency end-user ensure marketing
across access experience and effectiveness and
technologies as supporting RSP cost efficiency
far as possible economics
14 There are some small variations in satellite pricing in order to implement fair usage policies unique to the
satellite platform.
38 © 2016 nbn co limited | Corporate Plan 2017All of the services nbn supplies are The forecast is based on a set of
regulated and provided on a wholesale- key assumptions:
only, open-access, non-discriminatory
basis. nbn publishes standard terms and • average ARPU for residential and
conditions (developed in consultation business is expected to grow from
with customers) and then enters into $43 in FY16 to $52 by FY20 with a
bilateral supply agreements with its strong contribution from business
customers on the basis of these terms revenue and consistent with the retail
and conditions. nbn has also given the market opportunity
Australian Competition and Consumer • take-up rate across residential and
Commission (ACCC) a Special Access business areas by FY20 to be at
Undertaking (SAU) in relation to key approximately 70 per cent.
price and non-price obligations that
works in conjunction with nbn’s supply ARPU
agreements. The SAU covers FTTP, fixed
wireless and satellite services and nbn is The main drivers for the estimated
currently developing a variation to cover growth in ARPU are:
the balance of the MTM technologies.
• increase in end-user wholesale speed
Product pricing tiers: demand for higher speed
bandwidths is expected to increase,
nbn is conscious that pricing of its AVC pushing up AVC ARPU
and CVC product construct elements are
a very important part of an RSP’s overall • increase in end-user download volume:
economics and is seeking to ensure that end users are enjoying a proliferation of
its pricing mechanisms are fair and video-streaming services and are using
continue to facilitate uptake and migration more devices per household with new
of services to the nbnTM network, while data-intensive applications. This forecast
also providing an incentive to RSPs to is supported further through the
dimension their network to maximise introduction of DBD from 1 June 2016
end-user experience. that discounts the CVC price as greater
bandwidth is provisioned per end user
To achieve this goal, nbn has introduced
a Dimension Based Discounting (DBD) • business products: driven in part
scheme. This has resulted in a reduction of by micro and small business
CVC pricing from $17.50/month per Mbps segments, currently underserved
to $15.75/month per Mbps for the first by existing retailers.
applicable discount period, with further
moves in the discount available as the Take-up rate
industry average CVC capacity per end
Beyond FY20, overall Australian market
user changes. The calculation is currently
penetration of fast broadband speeds
based on an industry average and nbn is
is forecast to grow to 73-75 per cent of
working closely with the industry to enable
nbn’s covered network depending on
an RSP-specific DBD structure.
the geographical location. This is
Further evaluation and evolution of constrained by:
CVC pricing and the overall nbn pricing
• take-up of mobile-only products
mechanism is expected to continue to
(estimated ~15-16 per cent of premises,
ensure that nbn’s pricing methodology
mainly for groups with low traffic
supports network uptake and utilisation.
needs and high mobility needs)
Revenue drivers • vacant premises (estimated ~8.5-9.5
per cent of premises, assuming that
Annual revenue is expected to grow ~40 per cent of holiday homes will
from $0.4 billion in FY16 to $5.0 billion have an nbnTM network connection)
in FY20, a 12-fold increase.
© 2016 nbn co limited | Corporate Plan 2017 394. Operating Plan (continued)
• fibre alternatives (estimated ~1.5 per during the design and construction
cent of premises, based on existing fixed phase, and also as new technologies
line alternative fibre RFS footprints). or processes emerge. Some areas may
be serviced by multiple technologies.
4.2 Network technology This flexibility is at the heart of nbn’s
planning strategy to provide access to fast
broadband to all Australians as soon
The nbn planning approach determines as possible. nbn has therefore provided
which technologies are utilised on an indicative ranges for the number of
area-by-area basis so as to minimise premises covered by each technology.
peak funding, maximise speed of rollout, Technology allocation will continue
optimise economic returns and enhance to be optimised as further detailed
the viability of nbn. The multi- planning information becomes available.
technology approach provides the The base case varies from last year’s
flexibility for nbn to select the most Corporate Plan as we continue to
cost-effective and efficient technology optimise for the fastest and least
for each area. This leads to a faster expensive technology. The reduction in
rollout, which brings forward revenue HFC premises reflects a transition of
and minimises funding requirements. higher cost HFC premises to FTTN/B/dp
following further understanding of
The anticipated technology to be network planning and design and
deployed in communities may change delivery arrangements.
depending on a number of factors
Table 2: Proportion of premises covered by each technology
Corporate Plan 2017 Base case
End of End of End of End of
Rollout Rollout Rollout Rollout
(FY20) (M) (% of Total) (FY20) (M) (% of Total)
Technology
FTTP 2.0-2.5 17-21 2.0 17
FTTN/B/dp 5.1-6.5 43-54 6.1 51
HFC 2.5-3.2 21-27 2.8 24
Fixed Wireless and Satellite 0.9-1.1 8 1.0 8
Total Australia 11.9 100 11.9 100
Note: The operational and financial metrics in section 5 (Table 4) represent the current base case within
the above range.
The multi-technology approach allows indicate that FTTdp is a viable technology
nbn flexibility to adapt for technology option, and nbn is investigating its
advancements. For example, nbn is introduction into the technology mix,
currently trialling FTTdp which extends subject to commercial arrangements.
fibre further into the network and New technology introductions emphasise
leverages existing copper for the lead-in the need for ongoing flexibility in nbn’s
to premises from the curb. Initial trials technology selection planning.
40 © 2016 nbn co limited | Corporate Plan 2017nbn also looks to continually improve its FTTN successfully completed its trial
underlying architecture. A trial deploying phase and commercially launched in
‘skinny fibre’ was recently conducted September 2015 with wholesale speeds
and will be implemented through the of up to 100 Mbps downstream and
network. Skinny fibre reduces the size of 40 Mbps upstream. FTTB commercially
fibre optical cables used in deployment. launched in March 2015 and continues
The implementation of skinny fibre can to allow nbn to serve multi dwelling units
drive cost reductions and efficiencies, competitively and effectively. As at 30
particularly in the FTTP Greenfields build. June 2016, 900 buildings have been
delivered RFS with FTTB.
Upgrade path
The FTTN program has delivered 663,000
In order to balance the tension of premises RFS as at the end of FY16.
continuous technological progress
and changing end-user demand, the The program continues to explore the
nbnTM network is being built to deliver strategic, commercial and engineering
wholesale headline speeds and provide benefits of FTTdp and how it could
clear upgrade paths for each technology be introduced.
to cater for future forecast use as and Critical path and milestones
when market dynamics are present.
Pivotal to success for nbn is building
to, and maintaining, peak levels of
4.3 Network deployment throughput month-on-month throughout
FY17 and FY18. At the same time, the
FTTP program must continue to monitor the
performance of the copper network in
Overview line with its copper rehabilitation strategy.
The Brownfield FTTP program is
approaching maturity and has delivered Copper rehabilitation strategy
1.1 million premises RFS. Elements of Telstra’s copper network
(leading from the node to the premises)
The Greenfield FTTP program aspires are key components in the FTTN
to be the infrastructure provider of ‘first architecture. Field studies undertaken
choice’. In FY16, 89,000 incremental on more than 13,000 joints, together
Greenfield premises were made RFS. with early stage operations of the
network, indicate the condition of the
FTTP will continue to be used where
copper network to be in line with
it is the most appropriate and viable
expectations. The performance of the
technology option, or alternatively
copper network will continue to be
through the Technology Choice program.
monitored as the rollout progresses.
Critical path and milestones
The Greenfields program will continue HFC
with the implementation of ‘skinny fibre’, Overview
and other access technologies will be
introduced into the program during FY17. The HFC program involves the
augmentation and expansion of the
Telstra and Optus HFC networks.
FTTN
Construction and augmentation has
Overview commenced on both of these networks.
This was the first program to launch an A pilot in Redcliffe, QLD, was concluded
alternative fixed broadband technology in February 2016, with RSPs delivering
to FTTP. The program started scaling trial end-user speeds of up to 103 Mbps
rapidly in FY16. download and up to 43 Mbps upload.*
* Refer to Disclaimer on Page 12.
© 2016 nbn co limited | Corporate Plan 2017 414. Operating Plan (continued)
The Telstra HFC network in a trial in Ocean On 1 October 2015, nbn launched its
Reef, WA, delivered similar results. first broadband satellite, Sky Muster,TM
into orbit. The handover to managed
Following these successful trials, service providers Ericsson (Network
commercial services were launched in June Operations) and Optus (Flight
2016. A critical milestone was achieved in Operations) is complete and mechanisms
April 2016 with the signing of the Telstra agreed with RSPs to ensure effective
HFC Delivery Agreement. The agreement management of network capacity.
complements and streamlines the existing
arrangements nbn has with Telstra. In April 2016 the satellite service came
into commercial service. The second
As at 30 June 2016, build had commenced satellite will be launched and capacity
on 61,000 premises and more than 18,000 brought into service in FY17.
premises have been delivered RFS.
Critical path and milestones
Critical path and milestones
Key priorities for the program are:
Key priorities for the program are:
• complete migration of ISS users
• stand up all necessary operational
elements of the HFC Delivery • launch the second satellite in
Agreement with Telstra October 2016
• finalise potential long-term • continue to develop enhanced
arrangements with Optus. product offering.
Fixed Wireless Transit network
Overview Overview
The Fixed Wireless program extends The transit program provides the core
the nbnTM network beyond the reach of site, transport and network capability
the fixed line footprint. Operating since required to deliver the five access
2011, the program is managed through technology programs.
a turn-key delivery contract with
Ericsson as the primary vendor. Network While the initial footprint is largely
deployment is mature with the 100,000th complete, the shift to the multi-technology
end user activated in April 2016. mix presents new footprint, capability
and capacity requirements and therefore
At the end of FY16, 1,482 live sites have the transit program continues to adapt
been built covering 421,000 premises. its plan to support each technology.
Critical path and milestones Critical path and milestones
Key priorities for the program are: Key priorities for the program are:
• continue to optimise site capacity • continual rollout of the transit network
to serve more premises to support the scaled deployment of
multiple access technologies
• delivery of required capacity
upgrades without network disruption. • completing the phase one migration
of the Interim POIs to Permanent POIs
Satellite
• continued improvement of how nbn
Overview monitors and manages the bandwidth
The satellite program is nbn’s solution of transit links.
to cost effectively provide high-speed
broadband to rural and remote Australians.
42 © 2016 nbn co limited | Corporate Plan 2017You can also read
