nbn co corporate plan
Post on 03-Jun-2018
218 Views
Preview:
TRANSCRIPT
-
8/13/2019 Nbn Co Corporate Plan
1/162
NBN Co. Ltd.
Corporate Plan
201215
6 August 2012
Corporate Plan 2012-15 1 6 August 2012
-
8/13/2019 Nbn Co Corporate Plan
2/162
-
8/13/2019 Nbn Co Corporate Plan
3/162
2060
Australia
$ate
This Corporate Plan is dated 6 August
2012.
Corporate Plan 2012-15 2 6 August 2012
-
8/13/2019 Nbn Co Corporate Plan
4/162
NBN Co. Ltd.
TABL CNTNT&
1 E%EC&'I(ES&MMA)*+++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++,
1.1 NT789CTN T T' 2012-15 C7P7ATPLAN......................................................................................... :
1.2 &9//A7;B
1.? 2012-15 C7P7AT PLAN '+'L+'T&....................................................................................................... @
1. /=N+ 7/ T' 2011-1? C7P7AT PLAN T 2012-15 C7P7AT PLAN...............................................10
1.5 &9//A7; ; C7P7AT PLANA&&9/PTN&.......................................................................................1
2 -)./EC' S'A'&S
&-$A'E++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++1,
2.1 TL&T7A AN8 PT9& A+7/NT&.............................................................................................................1:
2.2 C9&T/7&............................................................................................................................................ 1:
2.? NT(7 8PL;/NT........................................................................................................................... 1>
2. T&;&T/&............................................................................................................................................. 21
2.5 8&+N T' ACT= AN8 PA&&= NT(7&........................................................................................... 22
2.6 ACLT&............................................................................................................................................... 2?
2.: 7+9LAT7; AN8 PLC; 8C&N& 9P8AT............................................................................................... 2
2.> LCAL CNTNT...................................................................................................................................... 2
C.M-AN*&-$A'E++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++2
?.1 /ANA+/NT 7&T79CT97 N A9+9&T 2011............................................................................................ 25
?.2 PPL AN8 PLC&............................................................................................................................... 2:
?.? 'ALT'% &AT; AN8 N=7N/NT "'................................................................................................. 2:
?. C9& N C//9NT;7LATN&.............................................................................................................2:
?.5 B9&N&& CNTN9T;.............................................................................................................................. 2>
?.6 9ALT; CNT7L AN8 CNTN99& /P7=/NT....................................................................................2>
?.: '9/AN 7&97C% N89&T7AL 7LATN& AN8 &AT;................................................................................2>
ACCESS A))ANGEMEN'S3 )EG&LA'.)* AN$ -.LIC* $ECISI.NS
+++++++++++++++++++++++++++++++++++++++++++++++++++++++++1
.1 ('L&AL B7A8BAN8 A+7/NT "(BA#............................................................................................. ?1
.2 &PCAL ACC&& 9N87TAN+ "&A9#.........................................................................................................?1
.? PLC; 8C&N&
-
8/13/2019 Nbn Co Corporate Plan
5/162
.................................................................................................................................... ?2
$E-L.*MEN' F.)ECAS'S+++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++
5.1 =7=(.............................................................................................................................................. ?5
5.2 T7AN&T NT(7.................................................................................................................................. ?:
5.? B7 CN&T79CTN P7+7A//
............................................................................................................ ?:5. D8 (7L&& AN8 &ATLLT..................................................................................................................?>
6 NE'4.)5 ).LL.&' AN$ C.S'S+++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++1
6.1 NT(7 7LL9T E N( 8=LP/NT&................................................................................................ 1
6.2 NT(7 7LL9T E C&T 7CA&T........................................................................................................
6.? T &;&T/& AN8 NT(7 7LA&&.......................................................................................................... 6
6. /PL/NTATN PT9& 'C A+7/NT............................................................................................. :
6.5 /PL/NTATN PLC; 8C&N&...................................................................................................... :
, MA)5E' EN(I).NMEN' AN$ -).$&C'S+++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++
:.1 /A7T N=7N/NT 9P8AT
................................................................................................................@
Corporate Plan 2012-15 ? 6 August 2012
-
8/13/2019 Nbn Co Corporate Plan
6/162
NBN Co. Ltd.
:.2 P789CT 8=LP/NT.......................................................................................................................... 55
:.? NBN-BA&8 7TALPLAN&........................................................................................................................ 5:
7 )E(EN&E F.)ECAS'S
++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++61>.1 &NAP&'T 7=N9 7CA&T&............................................................................................................ 61
>.2 7=N9 PLAN........................................................................................................................................ 61
FINANCIAL F.)ECAS'S++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++,1
@.1 &9//A7; NANCAL 7CA&T&...............................................................................................................:1
@.2 &CP 7 T' 2012-15 C7P7AT PLAN................................................................................................. :2
@.? 7CA&T ; NANCAL N8CAT7&......................................................................................................... :?
@. C/PA7&N T 2011-1? C7P7AT PLAN..............................................................................................:
@.5 8PL;/NT P7L.............................................................................................................................. :5
@.6 T;P 8PL;/NT 7 T' B7NT(7............................................................................................ :5
@.: CAPTAL DPN8T97.............................................................................................................................. :5
@.> P7ATN+DPN8T97.......................................................................................................................... ::
@.@ (7N+ CAPTAL................................................................................................................................... :>
@.10
TADATN...............................................................................................................................................:>
@.11 9N8N+ NBN C................................................................................................................................... :>
10 )IS5 MANAGEMEN'++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++7
10.1 7& /ANA+/NT &;&T/
...................................................................................................................... >?10.2 C7P7AT PLAN 7&&............................................................................................................................ >
11 GL.SSA)* .F 'E)MS++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++7
-
8/13/2019 Nbn Co Corporate Plan
7/162
Corporate Plan 2012-15 6 August 2012
-
8/13/2019 Nbn Co Corporate Plan
8/162
NBN Co. Ltd.
TABL D'BT&
D'BT 1-14 C/PA7&N 2011-1? C7P7AT PLAN =&. 2012-15 C7P7AT PLAN
7 T' B7 NT(7 CN&T79CTN P78 "F BLLN# "N/NAL
8LLA7....................................................... 10
D'BT 1-24 /PACT C'AN+& /=N+ 7/ 2011-1? T 2012-15 C7P7AT PLAN
7 T' B7 NT(7 CN&T79CTN P78 "F BLLN# "N/NAL
8LLA7....................................................... 11
D'BT 1-?4 C/PA7&N B7(NL8 P7/&& PA&&8 BT(N C7P7ATPLAN& .......................12
D'BT 1-4 C/PA7&N ; A&&9/PTN& N T' 2012-15 C7P7AT PLAN T T'2011-1?
C7P7AT PLAN........................................................................................................................................ 1
D'BT 1-54 P7T AN8 L&& "C9/9LAT=% F BLLN# "N/NAL 8LLA7............................................... 16
D'BT 1-64 9N8N+ &9//A7; "C9/9LAT=% F BLLN# "N/NAL 8LLA7.......................................... 16
D'BT 2-14 8A+7A/ T' T7AN&T AN8 B7 ACC&& NT(7&........................................................... 1>
D'BT 2-24 PLAT7/ AN8 CAPABLT&......................................................................................................... 22
D'BT ?-14 NBN C 7+AN&ATNAL &T79CT97 2012-15............................................................................25
D'BT ?-24 NBN C& 9NCTN& AN8 NT7AC&.........................................................................................26
D'BT 5-14 P7/&& PA&&8 7 C=78 "C9/9LAT= ;A7-N-;A7#.................................................... ?6
D'BT 5-24 P7/&& (T' ACT= &7=C "C9/9LAT= ;A7-N-;A7#................................................... ?6
D'BT 5-?4 8PL;/NT &C'89L 7 2012-15 C7P7AT PLAN............................................................. ?:
D'BT 5-4 ANN9AL 7LL9T C/PA7&N (T' T'7 C9NT7&.......................................................... ?>
D'BT :-14 &9//A7; 8ATA 9&A+BNC'/A7&..................................................................................... @
D'BT :-24 TL&T7A& D8 B7A8BAN8 T7AC +7(T'..........................................................................50
D'BT :-?4 9&8 NT7NATNAL BAN8(8T' +7(T' B; 7+N% 200:-2011......................................... 51
D'BT :-4 8(N&T7A/ 8/AN8 A&&9/PTN& 7 7&8NTAL C9&T/7&..................................... 5?
D'BT :-54 9P&T7A/ 8/AN8 &CNA7 A&&9/PTN&.............................................................................5
D'BT :-64 8(NLN BAN8(8T' 797/NT& =&. =L9TN TC'NL+;BAN8(8T'..........5
D'BT :-:4 9PLN BAN8(8T' 797/NT& =&. =L9TN TC'NL+;BAN8(8T' ................55
D'BT :->4 C/PA7AT= B9N8L8 P7CN+ NBN 7TAL 12G1 /BP& E A8&L2H........................................... 5>
D'BT :-@4 C/PA7AT= B9N8L8 P7CN+ NBN 7TAL 25G5 /BP& E A8&L2H........................................... 5@
D'BT :-104 C/PA7AT= B9N8L8 P7CN+ NBN 7TAL 100G0 /BP& E A8&L2H..................................... 5@
D'BT :-114 C/PA7AT= ('L&AL P7CN+ NBN =&. TL&T7A...............................................................60
D'BT >-14 7=N9 PLAN E 7CA&T&9//A7;.......................................................................................... 61
-
8/13/2019 Nbn Co Corporate Plan
9/162
D'BT >-24 7CA&T 7=N9 C/P&TN "F /LLN# "N/NAL8LLA7......................................... 62
D'BT >-?4 C/PA7&N B7(NL8& P7/&& CNNCT8 "C9/9LAT=# "I000.........................6?
D'BT >-4 =7ALL B7 &9B&C7B7 &PLT B; A=C &P8 T7&.................................................................6
D'BT >-54 ACC&& =7T9AL C7C9T "A=C# P7CN+........................................................................................65
D'BT >-64 P7CN+ 7 &;//T7CAL CAPACT; B; T7AC CLA&& AN8 A=ALABLT;
B; PLAT7/ TC'NL+; 7 ACC&& =7T9AL C7C9T& "A=C#.................................................................................. 66
D'BT >-:4 NT(7 T NT(7 NT7AC "NN# P7CN+.......................................................................66
D'BT >->4 7CA&T A=C P7CN+ 8CLN P7L "N/NAL 8LLA7................................................... 6:
D'BT >-@4 7CA&T C=C P7CN+ 8CLN P7L "N/NAL 8LLA7................................................... 6:
D'BT >-104 7CA&T D8 (7L&& AN8 &ATLLT 7=N9& "F /LLN# "N/NAL8LLA7 .........6>
D'BT >-114 A7P9 "F G /T'#.............................................................................................................................. 6@
D'BT @-14 &LCT8 7CA&T& AN8 P7
-
8/13/2019 Nbn Co Corporate Plan
10/162
NBN Co. Ltd.
D'BT @-54 ; 87NC& BT(N 2012-15 C7P7AT PLAN AN8 2011-1?C7P7AT PLAN...........:
D'BT @-64 7CA&T P7/&& PA&&8 AN8 CNNCT8 B; ;2021........................................................... :5
D'BT @-:4 7CA&T CAPTAL DPN8T97 "F /LLN# "N/NAL 8LLA7............................................ :5
D'BT @->4 7CA&T P7ATN+ DPN8T97 "F /LLN# "N/NAL 8LLA7...................................... ::
D'BT @-@4 NBN C& 7CA&T 9NL=78 9N8N+ 797/NT "F BLLN#"N/NAL 8LLA7 ....:@
D'BT @-104 NBN C& 7CA&T 9N8N+ P7L "8BT AN8 9T;# T ;202> "FBLLN# .................>0
D'BT @-114 NBN C& 7CA&T 9T; 9N8N+ 797/NT "F /LLN# "N/NAL8LLA7J ......>1
D'BT 10-14 NT7P7& 7& /ANA+/NT &;&T/
.................................................................................... >?
-
8/13/2019 Nbn Co Corporate Plan
11/162
Corporate Plan 2012-15 6 6 August 2012
-
8/13/2019 Nbn Co Corporate Plan
12/162
NBN Co. Ltd.
1 E%EC&'I(ES&MMA)*
1+1 Introduction to the 201281 Cor"orate-lan
This Corporate Plan "201281 Cor"orate -lan or the -lan# sets out the e obKecti,es and
priorities $or NBN Co Li!ited "NBN Co# $or the ? ears $ro! 1
-
8/13/2019 Nbn Co Corporate Plan
13/162
published a $inal deter!ination granting authorisation o$ the ptus 'C Agree!ent. All
conditions precedent to the
ptus 'C Agree!ent ha,e no* been satis$ied and the agree!ent is *holl
unconditional.
Corporate Plan 2012-15 : 6 August 2012
-
8/13/2019 Nbn Co Corporate Plan
14/162
NBN Co. Ltd.
1+2 Su!!ar# .
-
8/13/2019 Nbn Co Corporate Plan
15/162
Corporate Plan 2012-15 > 6 August 2012
-
8/13/2019 Nbn Co Corporate Plan
16/162
NBN Co. Ltd.
1+ 201281 Cor"orate -lan;ighlights
The 2012-15 Corporate Plan incorporates the i!pact o$ changes and de,elop!ents in the
deli,er o$ the National Broadband Net*or since the 2011-1? Corporate Plan. The
Plan also re$lects the eperience that NBN Co has gained in the $ield o,er the past 20!onths% as *ell as the outco!e o$ co!!ercial agree!ents that no* underpin !an o$
the !aKor cost assu!ptions in the 2012-15
Corporate
Plan.
8espite a nu!ber o$ a!end!ents to the proKect assu!ptions% settings and goals%
including a @ !onth dela in the co!!ence!ent o$ the Telstra 8e$initi,e Agree!ents and
the inclusion o$ the conse)uences o$ the ptus 'C Agree!ent in the scope o$ the
$orecasts% NBN Cos underling business case re!ains $unda!entall unchanged $ro! that
outlined in the 2011-1? Corporate Plan.
(holesale broadband prices are proKected to $all o,er ti!e in both real and no!inalter!s
The nternal 7ate o$ 7eturn "I))# re!ains abo,e : per annu! Total $orecast Capital penditure to end o$ the ibre Construction period increased b?.@
Construction Co!!enced or Co!pleted $or approi!atel :5>%000 ibrepre!ises b
8ece!ber 2012 and
ibre Construction period etended b 6 !onths despite @ !onth dela inCo!!ence!ent
8ate.
The $orecasts in the 2012-15 Corporate Plan are in$or!ed b contracts eecuted $or theibre% ied
(ireless% &atellite and Transit net*or rollouts% including construction and e)uip!entcontracts.
The 2012-15 Corporate Plan $orecasts a net increase in Capital penditure andperating
penditure during the ibre net*or Construction period to ;2021%due to4 The inclusion o$ the ptus 'C Agree!ent in the scope o$ the $orecasts is proKected to
deli,er additional nd-9sers and 7e,enues to NBN Co
The introduction o$ anticipated technolog upgrades $or both ied (ireless and LongTer!
&atellite &er,ice "L'SS# nd-9sers in rural and re!ote Australia
The i!ple!entation o$ the +o,ern!ents Ne* 8e,elop!ents polic% the i!plications o$*hich *ere onl partiall understood at the ti!e o$ the 2011-1? Corporate Plan and The !o,e b NBN Co to use a !ore e$$icient IBuild 8rop !ethod $or custo!er
connections$
These changes ha,e long ter! bene$its $or the i!ple!entation o$ the +o,ern!ents
broad obKecti,es $or the National Broadband Net*or as *ell as $or NBN Cos business
-
8/13/2019 Nbn Co Corporate Plan
17/162
case. The higher le,el o$ connections and re,enues beond ;2021 results in higher
proKected cash $lo*s% *hich increase the $orecast return "77# $ro! : to :.1 o,er the
?0 ear period used $or the NBN Co
$inancial !odel "$ro! 1
-
8/13/2019 Nbn Co Corporate Plan
18/162
NBN Co. Ltd.
The $inancial highlights $ro! the 2012-15 Corporate Plan are su!!arised in hibit 1-1.
!%hi&it 1'1 Comparison o *+11'1, Corporate -lan vs$ *+1*'1. Corporate -lan or the #i&re/etwor0
Construction -eriod ( illion) (/ominal 2ollars)
Ma=or Assu!"tionsandForecast Financial
Metrics
201181Cor"orate
-lan
201281Cor"orate
-lan
Change
Forecast )eturn>0 #ear &nle:ered
I))?
:.0 :.1 H0.1
Ca"italE@"enditure>to End
Construction?
F?5.@billion
"to
8ec20#
F?:.billion
"to
to
F*2021?
F2?.: billion F2?.1 billion F"0.6# billion
."eratingE@"enditure>to F*2021?
F2?.2 billion F26. billion HF?.2 billion
&ource4 NBN CoNote4 774 nternal 7ate o$ 7eturn. All nu!bers rounded to 1 deci!al point.
1+ Mo:ing 9ro! the 201181 Cor"orate -lan to 201281 Cor"orate -lan
The 2012-15 Corporate Plan incorporates the $ollo*ing !aKor changes *hen co!pared tothe 2011-
1? Corporate Plan4
A. Changes in the scope o$ the o,erall proKect resulting $ro!4
o The inclusion o$ the ptus 'C Agree!ent in the Corporate Plan $orecasts
and
o The latest assess!ent o$ the i!pact o$ i!ple!enting a nu!ber o$
polic re)uire!ents% including the $ull i!pact o$ the Ne* 8e,elop!ents polic
announced in 8ece!ber 2010 and re,ised in
-
8/13/2019 Nbn Co Corporate Plan
19/162
?change bands are based on the nu!ber o$ ser,ices in operation per s)uare ilo!etre and are used b the
ACCC in the price deter!inations $or declared $ied access ser,ices such as 9nbundled Local Loop "&LL#.h ttp 4GG*** .a ccc .g o , .a u Gco n ten tGind e .p h t! lGite!dG>5?51:.
Corporate Plan 2012-15 10 6 August 2012
http://www.accc.gov.au/content/index.phtml/http://www.accc.gov.au/content/index.phtml/http://www.accc.gov.au/content/index.phtml/http://www.accc.gov.au/content/index.phtml/http://www.accc.gov.au/content/index.phtml/http://www.accc.gov.au/content/index.phtml/http://www.accc.gov.au/content/index.phtml/ -
8/13/2019 Nbn Co Corporate Plan
20/162
NBN Co. Ltd.
o Accelerated Capital penditure during the Construction period to
;2021 as a result o$ adopting a IBuild 8rop strateg $or connecting
pre!ises to the ibre net*or.
The o,erall i!pact o$ the abo,e changes is su!!arised in hibit 1-24
!%hi&it 1'* 3mpact o Changes 4oving rom *+11'1, to *+1*'1. Corporate -lan or the #i&re/etwor0 Construction -eriod ( illion) (/ominal 2ollars)
'#"e o9 Changes ForecastCa"ital
E@"enditure>to End
Construction?
Forecast."eratingE@"enditur
e>to
F*2021?
Forecast)e:enues >toF*2021?
A+ Changes inSco"e o9 the.:erall -ro=ect
H F1.: billion H F2.2 billion H F2.0 billion
B+ .ther Changes F"0.?# billion H F1.1 billion F"2.6# billion
'otal Changes H F1. billion H F?.2 billion F"0.6# billion
&ource4 NBNCo
Note4 All nu!bers rounded to 1 deci!al
point.
1++1 Changes inSco"e
Changes in the scope o$ the o,erall proKect re)uired to be deli,ered b NBN Co ha,e
resulted in an increase in Capital penditure during the Construction period% an increase in
perating penditure to ;2021% but ha,e also increased 7e,enues o,er the period to
;2021 and beond. The principal changes in scope include4
1. ."tus ;FC Agree!ent E The !o,e!ent o$ additional subscribers to the National
Broadband Net*or under the ptus 'C Agree!ent results in !igration
pa!ents to ptus and in increased connection costs during the ibre net*orConstruction period. These up$ront increases in Capital penditure and perating
penditure are !ore than o$$set b additional 7e,enues proKected in later ears.
2. I!"act o9 -olic# $ecisions E &ince the 2011-1? Corporate Plan there ha,e been a
nu!ber o$ polic decisions that are no* re$lected in the 2012-15 Corporate Plan.
These policies are discussed in detail in &ection .?% -olicy 2ecisions% and include -oints o9 Interconnect >-oIs? E t has no* beco!e clear that the operational and$inancial conse)uences o$ i!ple!enting the ACCC re)uire!ents $or a se!i-
distributed !odel o$ 121 initial Pos "in application o$ the ACCC Ico!petition criteria
$or Po locations# *ere under- esti!ated in the 2011-1? Corporate Plan.
New $e:elo"!ents E The cost o$ eecuting the +o,ern!ents polic $orconnecting Ne*
8e,elop!ents "+reen$ields sites# has resulted in higher up$ront $inancial costs than
$orecast in the 2011-1? Corporate Plan "see &ection 6.1.2% /ew 2evelopments
5tatus#.
-
8/13/2019 Nbn Co Corporate Plan
21/162
Corporate Plan 2012-15 11 6 August 2012
-
8/13/2019 Nbn Co Corporate Plan
22/162
NBN Co. Ltd.
Batter# Bacu" E The 2011-1? Corporate Plan assu!ed that NBN Co *ould bere)uired to pro,ide Batter Bacup to 100 o$ ibre nd-9sers connections.
ollo*ing consultation *ith the &hareholder /inisters% the 2012-15 Corporate Plan
assu!es that nd-9sers *ill be able to no!inate *hether or not the *ant NBN
Co to pro,ide Batter Bacup. Priorit Assistance households *ill be pro,ided *ith
a Batter Bacup. t is no* assu!ed that 50 o$ ibre nd-9sers *ill elect not toha,e Batter Bacup% *ith a conse)uent reduction in Capital penditure. Fi@ed 4ireless and Long 'er! Satellite Antici"ated 'echnolog# &"grades E
The 2012-15
Corporate Plan includes additional Capital penditure associated *ith NBN Co
pro,isioning $or anticipated technolog upgrades on both the ied (ireless and
Long Ter! &atellite ser,ices $or rural and re!ote Australia. .ther -olic# Issues E The 2012-15 Corporate Plan re$lectsassu!ptions $or the i!ple!entation o$ other polic decisions being the ibre
net*or $ull co,erage o$ Band 1 and Band 2% Public n$or!ation on /igration
"-IM#% 9& Paphones% Public nterest Pre!ises "-I-s# and T9&/A Le,.
1++2 .therChanges
A$ter taing into account the changes in scope outlined in &ection 1..1% Changes in 5copethe 2012-
15 Corporate Plan re$lects a decrease in Capital penditure during the Construction
period% an increase in perating penditure to ;2021 and a reduction in 7e,enues to
;2021 co!pared *ith the 2011-1? Corporate Plan. (hilst there ha,e been changes in
!an o$ the underling assu!ptions% the net changes in Capital penditure% perating
penditure and 7e,enues can be attributed to three principal causes4
?. $ela#ed Co!!ence!ent o9 (olu!e )ollout E The 2011-1? Corporate Plan
assu!ed that the rollout *ould be co!pleted b 8ece!ber 2020 "@.5 ears $ro! %000
6%000
I!"acto9the
6 !onthdela#in Co!!ence!ent
$ate
%000
2%000
0
;2011 ;2012 ;201? ;201 ;2015 ;2016 ;201: ;201> ;201@ ;2020 ;2021
2012 -15 CP 2011 - 1? CP 2011 - 1? CP @ !onth dela
&ource4 NBN Co
-
8/13/2019 Nbn Co Corporate Plan
23/162
Corporate Plan 2012-15 12 6 August 2012
-
8/13/2019 Nbn Co Corporate Plan
24/162
NBN Co. Ltd.
. Increased 'elstra In9rastructure E 9nder the Telstra 8e$initi,e Agree!ents NBN
Co obtains access to higher ,olu!es o$ Telstra in$rastructure than *as anticipated in the
2011-1? Corporate Plan% notabl $or 8ar ibre and echange space. This has
resulted in higher perating penditure in the period to ;2021 and beond% o$$set b
lo*er Capital penditure.
5. Accelerated Custo!er Connect costs E NBN Co is planning to use a predo!inantl
IBuild 8rop strateg% in contrast to the I8e!and 8rop approach detailed in the 2011-1?
Corporate Plan as $urther detailed in &ection 6.2.?% Customer Connect. The IBuild 8rop
strateg is epected to be !ore cost e$$ecti,e in the long run than per$or!ing I8e!and
8rops% particularl in the contet o$ the agree!ent *ith Telstra to disconnect its copper
net*or.
The i!pact o$ the IBuild 8rop approach has been to accelerate Capital penditure
into the period to ;2021% although o,erall it is epected to be bene$icial to NBN Co
due to increased e$$iciencies.
n !o,ing $ro! the 2011-1? Corporate Plan to the 2012-15 Corporate Plan NBN Co hasanalsed each o$ the other e areas o$ the business to deter!ine *hether the
original underling assu!ptions continue to be ,alid "and there$ore rein$orced# or
*hether% o,er the elapsed ti!e% there ha,e been !aterial changes that need to be
addressed and re!odelled in the 2012-15
Corporate Plan. ,erall% the net e$$ect o$ these positi,es and negati,es ha,e approi!atel
balanced out% !eaning that% ecept as noted in ite!s 1 to 5 abo,e "&ections 1..1%
Changes in 5cope O 1..2% "ther Changes#% the business case re!ains consistent *ith the
2011-1? Corporate Plan4 'ae8&" E The 2012-15 Corporate Plan assu!es tae-up le,els in the ibre net*orare broadl consistent *ith those in the 2011-1? Corporate Plan% taing account o$ there,ised deplo!ent ti!e$ra!e and the ptus 'C Agree!ent noted in ite!s 1 and ?
abo,e "&ections 1..1% Changes in 5cope O 1..2% "ther Changes#. )e:enues E /aret data since the publication o$ the 2011-1? Corporate Plan pro,idessupport $or the original assu!ptions on speed and data usage% as *ell as NBN Cos
obKecti,e to reduce prices o,er ti!e% both in real ter!s and in no!inal ter!s. A,erage
7e,enue per 9ser "A)- assu!ptions are consistent *ith those in the 2011-1?
Corporate Plan. Ca"ital E@"enditure E ncreases in so!e Capital penditure ite!s% other thanthose noted abo,e in ite!s 1-5 "&ections 1..1% Changes in 5cope O 1..2% "therChanges#% ha,e been o$$set b sa,ings in other areas. (hilst this is not an ehausti,e
list% the !ain ,ariations in capital costs re$lected in the 2012-15 Corporate Plan include4
o Networ $istances E NBN Co has increased assu!ptions $or net*or distances
based on the latest a,ailable planning in$or!ation% *hich is considered !ore
accurate than pre,ious eternal data on *hich NBN Co had to rel at the ti!e o$ the
2011-1? Corporate Plan.
o Eui"!ent Costs E )uip!ent costs are lo*er than originall esti!ated
due to architectural opti!isation and ,olu!e G price arrange!ents *hich NBN Co
has negotiated since the 2011-1? Corporate Plan.
o Construction La
-
8/13/2019 Nbn Co Corporate Plan
25/162
Corporate Plan 2012-15 1? 6 August 2012
-
8/13/2019 Nbn Co Corporate Plan
26/162
NBN Co. Ltd.
o Multi"le $welling &nits >M$&s? E NBN Cos eperience in initial deplo!ent
sites has highlighted the challenges $or connecting pre!ises in /89s and
additional costs ha,e there$ore been e!bedded in the 2012-15 Corporate Plan.
o I' S#ste!s E Additional costs ha,e been incorporated into the 2012-15 Corporate
Plan $or
T sste!s costs and additional costs $or Acti,e Net*or 7eleases "AN)s#.
o Fi@ed 4ireless and Satellite E The costs o$ deploing the NBN in the ied
(ireless and &atellite $ootprint are lo*er than anticipated in the 2011-1?
Corporate Plan as a result o$ $urther net*or planning and design. ."erating E@"enditure E The 2012-15 Corporate Plan includes cost sa,ings in anu!ber o$ areas and increased costs in other areas. ther than noted abo,e in ite!s 1-5
"&ections 1..1% Changes in 5cope O 1..2% "ther Changes# the net e$$ect o$ these
changes has had a li!ited $inancial e$$ect on a cu!ulati,e basis. &igni$icant changes in
perating penditure assu!ptions include4
o Additional resources in the areas o$ Construction contract !anage!ent
Co!!unit engage!ent G nd-9ser interaction processes T /anage!ent
"particularl% align!ent o$ databases and sste!s bet*een% $or ea!ple% Telstra%
construction deli,er partners and NBN Co# Telstra interactions and general
o,erhead "in relation to /edia% reedo! o$ n$or!ation "FoI# acti,ities% responses
to Parlia!entar Co!!ittees#.
o &a,ings in perating penditure relating to nd-9ser !igrations% as a result o$ the
Telstra
8e$initi,e Agree!ents and the ptus 'C Agree!ents.
o 7educed perating penditure in the ied (ireless and &atellite net*ors as aresult o$ $urther net*or planning and design.
1+ Su!!ar# o9 5e# Cor"orate -lan Assu!"tions
The e assu!ptions e!bedded in the 2012-15 Corporate Plan are sho*n in hibit 1-
% *hich pro,ides a co!parison *ith the corresponding assu!ptions used in the 2011-1?
Corporate Plan.
!%hi&it 1' Comparison o ey Assumptions in the *+1*'1. Corporate -lan to the *+11'1,Corporate
-lan
5e# Assu!"tions 201181 Cor"orate -lan 201281 Cor"orate -lan
-eriod Co:ered
-
8/13/2019 Nbn Co Corporate Plan
27/162
Corporate Plan 2012-15 1 6 August 2012
-
8/13/2019 Nbn Co Corporate Plan
28/162
NBN Co. Ltd.
5e# Assu!"tions 201181 Cor"orate -lan 201281 Cor"orate -lan
-olic# $ecisions S.E )euire!ent Preli!inar assess!ent o$ Pointso$
nterconnect "-oI# decisionPreli!inar assess!ent o$
+reen$ields obligationsBatter Bacup to 100 o$
connected
ibre nd-9sers
no*n i!pact to date o$ Podecision no*n i!pact to date o$
+reen$ields obligationsBatter Bacup I/ust pt *ith
an assu!ed 50 tae-upAnticipated technolog upgradeso$ ied (ireless O Long Ter!
&atellite net*ors
ibre net*or ullCo,erage o$ Band 1 O 2
Public n$or!ation on /igration"P/# 9& Paphones
Public nterest Pre!ises
"PPs#
T9&/A
Le,
-re!ises -assedCo:ered
nd o$ ibre Net*orConstruction
Period
8ece!ber 2020 .? !illion >.5 !illion
Nu!ber o$ ied (ireless and&atellite
Pre!ises Connected ";2021#
0.2 !illion 0.2 !illion
5e# Ca"ital E@"enditure $ri:ers
Co,ered 7oad 8istance 1?0%000 !s 1>%000 !s
+PN Phsical 8istance 1>1%000 !s 206%000 !s
Aerial " o$pre!ises#
- Local Net*or- 8istributionNet*or
- Transit Net*or
250
0
25
0
0
ternal Net*or Ter!ination
8e,ices"N'$s#
50 Nil
Net*or Architecture
ITpe 1 ITpe 2
Custo!er Connections /odel I8e!and 8rop IBuild 8rop
&ource4 NBN Co
-
8/13/2019 Nbn Co Corporate Plan
29/162
Note4 The 2012-15 Plan assu!es 100 nternal NT8s.
7e$er &ection 6.2.2% #i&re /etwor0 $or $urther details.
Corporate Plan 2012-15 15 6 August 2012
-
8/13/2019 Nbn Co Corporate Plan
30/162
-
8/13/2019 Nbn Co Corporate Plan
31/162
NBN Co. Ltd.
2 -)./EC' S'A'&S&-$A'E
2+1 'elstra and ."tusAgree!ents
NBN Co and Telstra announced on 2?
-
8/13/2019 Nbn Co Corporate Plan
32/162
5@ is an NBN Co calculation based on total !aret nu!ber o$ broadband subscribers and the nu!ber o$
subscribers *ho purchase broadband ser,ices $ro! 7&Ps that ha,e signed a (BA *ith NBN Co.
Corporate Plan 2012-15 1: 6 August 2012
-
8/13/2019 Nbn Co Corporate Plan
33/162
5 Customer 4 Lead-ins Local Netw ork 2 Distribution Netw ork 1 Transit Network
cti!e"#uipment$ %D&s
erial
NTD
PCD
%PT
%PT '
LT
D(
D% D
(D%
NBN Co. Ltd.
2+ Networ $e"lo#!ent
hibit 2-1 pro,ides an o,er,ie* o$ NBN Cos ibre access net*or and Transit co!ponents.
!%hi&it *'1 2iagram o the ;ransit and #i&re Access /etwor0s
)*Ps
N etworkTermination
Premises
Premise
C onnect ion
Lead-+nConduit
Ducted ,ibre
&nderroundDistribution Point
erial,ibre Network
Ducted,ibre
Pit Pit
.,D/0 ,ibreD
istribution/ub
Ducted,ibre
%anoles
.,N
0
,ibreccessNode
Ducted$2uried
,ibre
.Po+3N0
P ointo4 +nter
connect3 --re-ation Node
D e!ice.NTD De!ice.PCD
&nderroundLead-+nConduit
& nderroundLocal ,ibreN et work
%ultiport
5 4 2 1
Premise e#uipment Network
Lead-ins could be aerial or Local Networ k could be a erial or underroun6d7 (it te
Telstra Deal6
Dist ribution Net work to bemostl8
Transit N et work
Termination De!ice installed
underroundN N Co is e9pectin te ma:orit 8 to beunderround
underround
&ource4 NBNCo
2++1 'ransitNetwor
The Transit net*or is the bacbone o$ the National Broadband Net*or and pro,ides
connecti,it $or each o$ NBN Cos three Access net*ors "ibre% ied (ireless and
&atellite# to the Points o$ nterconnect "-oIs# *here 7etail &er,ice Pro,iders connect to
the NBN Co net*or. The Transit net*or includes planning $or three ele!ents4 8ar ibre
Lins% ibre Access Nodes and Aggregation Nodes "*here !ost Points o$ nterconnects *ill
be located#.
NBN Co *ill be using in$rastructure pro,ided b Telstra in the $or! o$ 8ar ibre and 7ac
&pace in echange buildings% 8ar ibre $ro! the 7egional Bachaul Blacspots
Progra!!e ")BB-# and so!e ne* $acilities to build the Transit net*or.
The Transit net*or *ill use di,erse trans!ission paths $or the 8ar ibre "deploed as
trans!ission rings# to carr high capacit 8ense (a,elength 8i,ision /ultipleing "$4$M#
optical signals $ro! the regional and re!ote locations to the Pos.
The Transit net*or proKect has been established in order to !anage the rollout o$ thenet*or *ith
Telstra and other parties o,er a period o$ 2 !onths co!!encing 1 August
2011.8esign docu!ents $or the $irst $i,e rings o$ 8ar ibre and all related Aggregation Nodes
and ibre Access Nodes "FANs# sites are co!plete. The related e)uip!ent has been
ordered and the $irst ring has been success$ull co!pleted in the Berle =ale area.
2++2 Fi
-
8/13/2019 Nbn Co Corporate Plan
34/162
NBN Co has no* begun the ,olu!e construction o$ the ibre net*or *ith a $ocus on
e$$icienc and cost e$$ecti,eness. NBN Cos inaugural I12 !onth ibre 7ollout Plan *as
published in ctober 2011.
Corporate Plan 2012-15 1> 6 August 2012
-
8/13/2019 Nbn Co Corporate Plan
35/162
NBN Co. Ltd.
n 2@ /arch 2012% NBN Co released its $irst I? ear ibre 7ollout Plan% *hich has anobKecti,e o$
Construction Co!!enced or Co!pleted $or approi!atel ?.5 !illion ibre pre!ises b?0
-
8/13/2019 Nbn Co Corporate Plan
36/162
agree!ents $or ongoing net*or aug!entation% !aintenance and $ield
ser,ices. The
Corporate Plan 2012-15 1@ 6 August 2012
-
8/13/2019 Nbn Co Corporate Plan
37/162
NBN Co. Ltd.
agree!ents are $or an initial ear period and include an option $or rene*al o,er each
o$ the $ollo*ing 2 ears.
NBN Co is no* in the process o$ etending (or Pacage Contracts 1 to ? to include
IBuild 8rops "installing Pre!ises Connection 8e,ices at the ti!e o$ the Local net*or
construction#. NBN Co is also appointing contractors to per$or! on de!andacti,ations% net*or assurance and aug!entations. NBN Co *ill increase
construction capacit in !ore densel populated regions through the release and a*ard
o$ $urther construction *or pacages b the end o$ calendar 2012.
n &epte!ber 2011% the trial ser,ice phase in the irst 7elease &ites ca!e to an end and
co!!ercial ser,ices co!!enced% *ith the $irst billing run co!pleted on 22 ctober 2011.
As at ?0
-
8/13/2019 Nbn Co Corporate Plan
38/162
containing approi!atel 15%000pre!ises.
NBN Co de,eloped an nteri! &atellite ser,ice "also re$erred to as the irst 7elease&atellite &er,ice
"F)SS## to act as a transition bet*een the Australian Broadband +uarantee "ABG#
&che!e "*hich
Corporate Plan 2012-15 20 6 August 2012
-
8/13/2019 Nbn Co Corporate Plan
39/162
NBN Co. Ltd.
epired on 1
-
8/13/2019 Nbn Co Corporate Plan
40/162
Corporate Plan 2012-15 21 6 August 2012
-
8/13/2019 Nbn Co Corporate Plan
41/162
NBN Co. Ltd.
NBN Co has adopted a deli,er !odel based around groups o$ related sste!s"-lat9or!s#. T
de,elop!ent and support tea!s are aligned to these Plat$or!s.
!%hi&it *'* -latorm and Capa&ilities
-lat9or! Ca"a
-
8/13/2019 Nbn Co Corporate Plan
42/162
-
8/13/2019 Nbn Co Corporate Plan
43/162
NBN Co. Ltd.
&i!ilar to the process $or the design% testing and release o$ AN7s% NBN Co adopts a phased
approach $or the release o$ Passi,e Net*or 7eleases "-N)s#. These deli,er a range o$
product and operational capabilities. -assi:e Networ )elease 1 >-N)1?*as released $or net*or *ide deplo!ent in
-
8/13/2019 Nbn Co Corporate Plan
44/162
Corporate Plan 2012-15 2? 6 August 2012
-
8/13/2019 Nbn Co Corporate Plan
45/162
NBN Co. Ltd.
2+, )egulator# and -olic# $ecisions&"date
&ince the release o$ the 2011-1? Corporate Plan% the /ational road&and /etwor0Companies Act
*+11 and the ;elecommunications egislation Amendment (/ational road&and /etwor04easures
< Access Arrangements) Act *+11 ha,e been passed%establishing4 The go,ernance% o*nership and operating arrange!ents $or NBNCo and The regi!e to $acilitate open access to the *holesale-onl NBN $or do*nstrea!
ser,ice pro,iders.
This legislation builds on the re$or!s i!ple!ented b the ;elecommunications
egislation Amendment (Competition and Consumer 5aeguards) Act *+1+% including the
$ra!e*or $or Telstras ,oluntar structural separation ,ia the Telstra 8e$initi,e
Agree!ents. Progress has also been !ade since the release o$ the 2011-1? Corporate Plan
in relation to the $ollo*ing regulator !atters4 New $e:elo"!ents Clarit has been pro,ided in relation to NBN Cos rolein Ne* 8e,elop!ents.
6The ;elecommunications egislation Amendment (#i&re
2eployment) Act *+11 speci$ies NBN Cos role as the *holesale pro,ider o$ last
resort in Ne* 8e,elop!ents in accordance *ith polic state!ents released b the
+o,ern!ent "$or de,elop!ents o,er 100 lots o,er ? ears#. Pit O pipe and conduit lead-
in in$rastructure "Iibre-7ead acilities# are pro,ided b de,elopers to NBN Co.
-u
-
8/13/2019 Nbn Co Corporate Plan
46/162
6ibre in Ne* 8e,elop!ents4 Polic 9pdate 22
-
8/13/2019 Nbn Co Corporate Plan
47/162
NBN Co. Ltd.
C.M-AN*&-$A'E
+1 Manage!ent )estructure in August2011
NBN Co reorganised its !anage!ent structure in August 2011 to cater $or its transition $ro!
a start- up% $ocused on planning and net*or design% to an established business read $or
,olu!e rollout. The organisational changes included4 The creation o$ a ne* role o$ Chie$ perating $$icer *ith responsibilit $orconstruction% deplo!ent planning% T and net*or operations% health% sa$et and
en,iron!ent The integration o$ sales% pricing% industr relations and regulator $unctions in theepanded depart!ent o$ Product /anage!ent and ndustr 7elations The bringing together o$ suppl chain !anage!ent% procure!ent% co!!ercial strategand the !anage!ent o$ the Telstra 8e$initi,e Agree!ents and the ptus 'C
Agree!ent as part o$ the Corporate depart!ent An increased $ocus on )ualit planning% control and i!pro,e!ent *ith the appoint!ento$ a
'ead o$ ualitand The appoint!ent o$ a Chie$ Co!!unications $$icer to !anage +o,ern!ent%
!edia and staeholder relations as *ell as to o,ersee the public in$or!ation ca!paign
that *ill in$or! and educate the Australian public about the NBN rollout.
The restructure resulted in : $unctions reporting into the C. This includes ne*l-
created or ne*l-consolidated $unctions% as sho*n in the ne* organisational charts in hibit
?-14
!%hi&it ,'1 // Co "rganisational 5tructure
*+1*'1.
Chie9 E@ecuti:e.99icer
/i0e
uigle
Chie9 Financial
.99icer7obin Pane
Chie9 ."erating
.99icer7alph
&te$$ens
;ead o9 -roductManage!ent DIndustr# )elations
-
8/13/2019 Nbn Co Corporate Plan
48/162
-
8/13/2019 Nbn Co Corporate Plan
49/162
n
TechnologyVendorLiaison
ProductEngineering
Architecture&Technology
NationalTestFacility
InformationTechnology
ealth!
"afety&En#iron$
Net%orPlanning&Desig
NBN Co. Ltd.
&ince the 2011-1? Corporate Plan the $ollo*ing appoint!ents o$ senior !anage!ent
personnel ha,e occurred4 7alph &te$$ens as Chie$ perating$$icer
7obin Pane as Chie$ inancial$$icer /ie aiser as 'ead o$ ualitand ieren Coone as Chie$ Co!!unications$$icer. hibit ?-2 sho*s NBN Cos $unctions
and inter$aces. !%hi&it ,'* // Co>s #unctions
and 3nteraces
&ource4 NBN
Co
-
8/13/2019 Nbn Co Corporate Plan
50/162
Corporate Plan 2012-15 26 6 August 2012
-
8/13/2019 Nbn Co Corporate Plan
51/162
NBN Co. Ltd.
+2 -eo"le and-olicies
NBN Co had 1%620 e!ploees as at ?0 01% '&A&1>001and &1001.
The har!onised (or 'ealth and &a$et la*s ca!e into $orce as $ro! 1
-
8/13/2019 Nbn Co Corporate Plan
52/162
NBN Co *ill engage *ith bod corporate entities G o*ners o$ /ulti-8*elling 9nits"M$&s#% including co!!ercial /89s% to gain their appro,al to install net*or
in$rastructure
Corporate Plan 2012-15 2: 6 August 2012
-
8/13/2019 Nbn Co Corporate Plan
53/162
-
8/13/2019 Nbn Co Corporate Plan
54/162
classi$ications o$ e!ploees
in the technical% pro$essional% clerical G ad!inistration and contact centre areas. These
BAs are in
Corporate Plan 2012-15 2> 6 August 2012
-
8/13/2019 Nbn Co Corporate Plan
55/162
NBN Co. Ltd.
place until 201 and pro,ide co!petiti,e ter!s and conditions $or NBN Co e!ploees
co,ered b the agree!ents.
NBN Co re)uires its contractors to be responsible e!ploers *ho pro,ide sa$e *or
en,iron!ents and e$$icient *or practices taing into account legal re)uire!ents% all
rele,ant !aret $actors and business operating conditions. NBN Co re)uires contractorsengaged in the construction o$ the NBN to de!onstrate their abilit to e$$ecti,el !anage
e!ploee relations !atters including co!pliance *ith the air (or Principles and National
Code o$ Practice $or the Construction ndustr and the associated 200@ ,ersion o$ the
i!ple!entation guidelines.
NBN Co is taing a e role in scoping the labour pool re)uired $or the construction o$ the
NBN and *ill generate a range o$ progra!!es that *ill build NBN Cos *or$orce in close
cooperation *ith construction contractors. NBN Co has identi$ied e )uali$ications re)uired
$or this *or$orce and is de,eloping a range o$ training progra!!es including an NBN Co
&a$et and A*areness course that is undertaen b NBN Co construction *orers.
The eternall contracted NBN Co construction *orers *ill be dispersed across the
countr pro,iding opportunities $or local e!plo!ent. NBN Co sees to encourage its
principal contracting partners to ha,e in place !anage!ent plans $or local industr
engage!ent and indigenous participation. NBN Co *ill *or *ith its partners to encourage
i!ple!entation and co!pliance *ith
these
plans.
Corporate Plan 2012-15 2@ 6 August 2012
-
8/13/2019 Nbn Co Corporate Plan
56/162
NBN Co. Ltd.
'his "age is le9t intentionall#
-
8/13/2019 Nbn Co Corporate Plan
57/162
NBN Co. Ltd.
ACCESS A))ANGEMEN'S3 )EG&LA'.)* AN$-.LIC* $ECISI.NS
+1 4holesale Broad4BA?
NBN Cos (holesale Broadband Agree!ent "4BA# *as published as a &tandard or!
o$ Access Agree!ent "SFAA# on ?0 No,e!ber 2011 *ith an initial ter! that *ill run $or
12 !onths% unless etended b agree!ent bet*een the Access &eeer and NBN Co.
n de,eloping the (BA% NBN Co undertoo intensi,e consultation to assist in the
$or!ulation o$ suppl ter!s that appropriatel balance the interests o$ NBN Co and the
interests o$ its Access &eeers. This pro,ides potential Access &eeers *ith a
!eaning$ul role in the $or!ulation o$ the (BA and enables NBN Co to co!pl *ith its non-
discri!ination obligations.
To date !ore than 0 Access &eeers ha,e entered into the (BA *ith NBN Co% and the
co!!ercial suppl o$ ibre ser,ices to Access &eeers has co!!enced. NBN Co iscontinuing to engage *ith the Australian teleco!!unications industr regarding the $urther
enhance!ent o$ the (BA% ,ia the Contract 8e,elop!ent Process set out in the (BA itsel$.
NBN Co has also published the (ireless Trial Agree!ent% the nteri! &atellite &er,ices
Agree!ent% the &atellite (holesale Broadband Agree!ent and Testing Ter!s and
Conditions as &tandard or! o$ Access Agree!ents.
+2 S"ecial Access &ndertaing>SA&?
NBN Co lodged a &pecial Access 9ndertaing "SA *ith the ACCC on 5 8ece!ber
2011% $ollo*ing *hich the ACCC co!!enced a public consultation process in relation to that
&A9.
NBN Co has been care$ull *oring through $eedbac recei,ed $ro! the ACCC and Access
&eeers in relation to the &A9 as lodged in 8ece!ber 2011% and continuing to engage
constructi,el *ith the!. NBN Co ,ie*s the process o$ achie,ing an accepted &A9 as a
dna!ic and consultati,e one% through *hich the undertaing can be $urther de,eloped and
re$ined bet*een original lodge!ent and $inal acceptance.
As a result o$ this ongoing engage!ent process% NBN Co has de,eloped a re,ised
approach to the &A9 *hich addresses issues raised b Access &eeers and the ACCC.
The high le,el design principles $or the proposed Incenti,e Based /odular &A9 *erepro,ided to the ACCC and subse)uentl published on 20
-
8/13/2019 Nbn Co Corporate Plan
58/162
supplied b NBN Co to ser,ice pro,iders and
utilities.
Corporate Plan 2012-15 ?1 6 August 2012
-
8/13/2019 Nbn Co Corporate Plan
59/162
NBN Co. Ltd.
The &A9 re)uires NBN Co to co!pl *ith price and non-price co!!it!ents that are
!ade in the &A9. The &A9 *ill re)uire NBN Co to ensure that its &tandard or! o$
Access Agree!ent "including the (BA# re!ains aligned *ith the &A9.
The &A9 co!!it!ents ha,e been !ade as part o$ an o,erall pacage o$ !easures that
pro,ide NBN Co *ith the opportunit to reco,er its prudentl incurred costs o,er ti!e%
including a rate o$ return abo,e the long ter! +o,ern!ent bond ield.>
+ -olic#$ecisions
++1 201281 Cor"orate -lan -olic#Assu!"tions
The !ost recent de,elop!ents in polic decisions that ha,e been integrated into the2012-15
Corporate Planare4 FrustratedH M$&s E NBN Co is considering its engage!ent !odel *ith Bodies
Corporate to de$ine I$rustrated /89s in line *ith the &tate!ent o$ pectations "S.E#. Accounting Se"aration E As re)uired b the &% NBN Co is consulting *ith theACCC on the design and i!ple!entation o$ accounting sste!s to aid an $uture
accounting separation arrange!ents. Accounting separation co,ers assets and costs%
but not re,enues. Batter# Bacu" E The +o,ern!ent has consulted *idel *ith e staeholder groupson the etent to *hich NBN Co pro,ides Batter Bacup to di$$erent tpes o$ nd-
9sers "e.g. phone- onl nd-9sers% &pecial &er,ices and Priorit Assist nd-9sers#.
The 2012-15 Corporate Plan incorporates the +o,ern!ents polic approach that
nd-9sers *ill be able to no!inate *hether or not the *ant NBN Co to pro,ide
Batter Bacup. Priorit Assistance households *ill be pro,ided *ith a Batter Bacup. t
is no* assu!ed that 50 o$ ibre nd-9sers *ill elect not to ha,e Batter Bacup% *ith
a conse)uent reduction in Capital penditure. Co!"lete Co:erage within the Fior $urther in$or!ation on the NBN Co &A9% re$er the ACCC *ebsite4
h ttp 4GG*** .a ccc .g o , .a u Gco n ten tGind e .p h t! lGite!dG10201>5.
http://www.accc.gov.au/content/index.phtml/http://www.accc.gov.au/content/index.phtml/http://www.accc.gov.au/content/index.phtml/http://www.accc.gov.au/content/index.phtml/http://www.accc.gov.au/content/index.phtml/ -
8/13/2019 Nbn Co Corporate Plan
60/162
@Process docu!ent a,ailable on NBN Co *ebsite $or getting connected ,ia Net*or tension
progra!!e.http4GG***.nbnco.co!.auGgetti ng-connectedGnet*or-etension.ht!l.
Corporate Plan 2012-15 ?2 6 August 2012
http://www.nbnco.com.au/getting-connected/network-extension.htmlhttp://www.nbnco.com.au/getting-connected/network-extension.htmlhttp://www.nbnco.com.au/getting-connected/network-extension.htmlhttp://www.nbnco.com.au/getting-connected/network-extension.htmlhttp://www.nbnco.com.au/getting-connected/network-extension.htmlhttp://www.nbnco.com.au/getting-connected/network-extension.htmlhttp://www.nbnco.com.au/getting-connected/network-extension.htmlhttp://www.nbnco.com.au/getting-connected/network-extension.htmlhttp://www.nbnco.com.au/getting-connected/network-extension.htmlhttp://www.nbnco.com.au/getting-connected/network-extension.htmlhttp://www.nbnco.com.au/getting-connected/network-extension.htmlhttp://www.nbnco.com.au/getting-connected/network-extension.htmlhttp://www.nbnco.com.au/getting-connected/network-extension.htmlhttp://www.nbnco.com.au/getting-connected/network-extension.htmlhttp://www.nbnco.com.au/getting-connected/network-extension.htmlhttp://www.nbnco.com.au/getting-connected/network-extension.htmlhttp://www.nbnco.com.au/getting-connected/network-extension.htmlhttp://www.nbnco.com.au/getting-connected/network-extension.htmlhttp://www.nbnco.com.au/getting-connected/network-extension.htmlhttp://www.nbnco.com.au/getting-connected/network-extension.htmlhttp://www.nbnco.com.au/getting-connected/network-extension.htmlhttp://www.nbnco.com.au/getting-connected/network-extension.htmlhttp://www.nbnco.com.au/getting-connected/network-extension.htmlhttp://www.nbnco.com.au/getting-connected/network-extension.htmlhttp://www.nbnco.com.au/getting-connected/network-extension.htmlhttp://www.nbnco.com.au/getting-connected/network-extension.htmlhttp://www.nbnco.com.au/getting-connected/network-extension.htmlhttp://www.nbnco.com.au/getting-connected/network-extension.htmlhttp://www.nbnco.com.au/getting-connected/network-extension.htmlhttp://www.nbnco.com.au/getting-connected/network-extension.htmlhttp://www.nbnco.com.au/getting-connected/network-extension.htmlhttp://www.nbnco.com.au/getting-connected/network-extension.htmlhttp://www.nbnco.com.au/getting-connected/network-extension.htmlhttp://www.nbnco.com.au/getting-connected/network-extension.htmlhttp://www.nbnco.com.au/getting-connected/network-extension.htmlhttp://www.nbnco.com.au/getting-connected/network-extension.htmlhttp://www.nbnco.com.au/getting-connected/network-extension.htmlhttp://www.nbnco.com.au/getting-connected/network-extension.htmlhttp://www.nbnco.com.au/getting-connected/network-extension.htmlhttp://www.nbnco.com.au/getting-connected/network-extension.htmlhttp://www.nbnco.com.au/getting-connected/network-extension.htmlhttp://www.nbnco.com.au/getting-connected/network-extension.htmlhttp://www.nbnco.com.au/getting-connected/network-extension.htmlhttp://www.nbnco.com.au/getting-connected/network-extension.htmlhttp://www.nbnco.com.au/getting-connected/network-extension.htmlhttp://www.nbnco.com.au/getting-connected/network-extension.htmlhttp://www.nbnco.com.au/getting-connected/network-extension.htmlhttp://www.nbnco.com.au/getting-connected/network-extension.htmlhttp://www.nbnco.com.au/getting-connected/network-extension.htmlhttp://www.nbnco.com.au/getting-connected/network-extension.htmlhttp://www.nbnco.com.au/getting-connected/network-extension.htmlhttp://www.nbnco.com.au/getting-connected/network-extension.htmlhttp://www.nbnco.com.au/getting-connected/network-extension.htmlhttp://www.nbnco.com.au/getting-connected/network-extension.htmlhttp://www.nbnco.com.au/getting-connected/network-extension.htmlhttp://www.nbnco.com.au/getting-connected/network-extension.htmlhttp://www.nbnco.com.au/getting-connected/network-extension.htmlhttp://www.nbnco.com.au/getting-connected/network-extension.htmlhttp://www.nbnco.com.au/getting-connected/network-extension.html -
8/13/2019 Nbn Co Corporate Plan
61/162
NBN Co. Ltd.
-u-I-s? !ostl# co!"osed o9 &ni:ersities3 Schools and;os"itals E NBN Co has had discussions *ith +o,ern!ent on the epectations o$ ho*
PPs should be ser,ed. NBN Co is undertaing a trial *ith a nu!ber o$ PPs to $urther
re$ine its engage!ent !odel. Adeuatel# Ser:ed E The +o,ern!ent has released a polic paper setting out thecriteria and a process $or deter!ining *hether eisting $ibred pre!ises are ade)uatel
ser,ed. NBN Co *ill not be re)uired to o,erbuild eisting net*ors *hich are ade)uatel
ser,icing pre!ises. Non8-re!ises >Non8Addressa-oIs? E NBN Co assu!es the continued use ande$$ecti,eness o$ the
ACCC list currentl on the ACCCs *ebsite.12
&ni:ersal Ser:ice Arrange!ents E The 2012-15 Corporate Plan includes a speci$icpro,ision $or the cost o$ connecting and pro,iding *holesale ser,ices to 9ni,ersal
&er,ice bligation "&S.# paphones. The Plan also includes esti!ates o$ NBN Cos
contribution to the T9&/A le,. S"ectru! )euire!ents E As at ?0
-
8/13/2019 Nbn Co Corporate Plan
62/162
Corporate Plan 2012-15 ?? 6 August 2012
-
8/13/2019 Nbn Co Corporate Plan
63/162
NBN Co. Ltd.
'his "age is le9t intentionall#
-
8/13/2019 Nbn Co Corporate Plan
64/162
NBN Co. Ltd.
$E-L.*MEN' F.)ECAS'S
+1 .:er:iew
n the period since the publication o$ the 2011-1? Corporate Plan it has been necessar tore,ise
NBN Cos deplo!ent $orecasts to tae account o$ a nu!ber o$ $actors4 8elas in the $inalisation o$ the conditions precedent to the Telstra 8e$initi,e Agree!ents.t *as originall assu!ed that b ?0
-
8/13/2019 Nbn Co Corporate Plan
65/162
Corporate Plan 2012-15 ?5 6 August 2012
-
8/13/2019 Nbn Co Corporate Plan
66/162
NBN Co. Ltd.
These $orecasts are consistent *ith the obKecti,e o$ Construction Co!!enced or
Co!pleted $or approi!atel :5>%000 ibre pre!ises b ?1 8ece!ber 2012% in line *ith
NBN Cos I12 !onth national ibre rollout schedule and Construction Co!!enced or
Co!pleted $or approi!atel ?.5 !illion ibre pre!ises b ?0 %000 165%00 1>?%00 - 1>?%000
;2012 2@%000 1:%00 20?%00 10%000 21?%000
;201? 2>6%00 ?20%00 606%00 55%000 661%000
;201 1%12@%00 ?:%00 1%50?%00 1:>%00 1%6>1%00
;2015 2%@@%00 :52%00 ?%251%00 1?%00 ?%66%00
F*2016 3762300 0,300 3,6300 ,6300 32300
&ource4 NBNCo
Pre!ises or lots passed G co,ered rounded to the nearestthousands.
Pre!ises are passed G co,ered *hen the shared net*or and ser,ice ele!ents are installed% accepted% co!!issioned and
read $or ser,ice *hich then enables an nd-9ser to order and purchase a broadband ser,ice $ro! their choice o$ retail ser,ice
pro,ider.
JGreen9ields in New $e:elo"!entsK lots "assed !a# not eual "re!ises "assed de"ending on de:elo"erHsti!e9ra!e to
-
8/13/2019 Nbn Co Corporate Plan
67/162
Net*or Ter!ination 8e,ices >N'$s? and reliable Po*er &uppl 9nit "-S% *ith Batter Bacup >BB&? option "$oribre pre!ises#.
JF''- Green9ields are de!and8dri:en acti:ities which are su
-
8/13/2019 Nbn Co Corporate Plan
68/162
NBN Co. Ltd.
+2 'ransitNetwor
NBN Co has prioritised Transit connecti,it to support earlier connection o$ +reen$ields
estates ahead o$ the ,olu!e rollout. Prioritising the Transit rollout also supports the rapid
deplo!ent o$ the ied (ireless net*or. The 2012-15 Corporate Plan $orecasts that theTransit net*or *ill be co!pleted b the end o$ ;2015% *ith the bul o$ the net*or in
place b the end o$ ;201.
+ Fi
# -remises -assed 2aily Run Rate (*.+ =or0ing2aysBAear) 7,
+reen$ields Pre!ises Passed "3000s Pre!ises# -
G# -remises -assed 2aily Run Rate (*.+ =or0ing2aysBAear) '
Fi000s -re!ises? 17
2@ 2>6 1%12@ 2%@@
* 1+*8 ,,7* .8*
10 55 1:> 1?
+ 179 9* 91
1 130, 2312
?%>62 5%16> 6%2? :%610 >%>:@
..+ .**. .+*+ 76 .+78
:6? 1%111 1%15 1%6:? 1%@0
1++ 1,9* 1*1. 1+,, 9**
362 632, ,377 327
10%0@1
87
2%111
8*9
123202
Fi20 4oring $a#s*ear? , 7 1320, 376 632 6370 6361, 632 3,70 63001 36,,
Bro*n$ields Pre!ises Connected "3000s Pre!ises# 1
# -remises Connected 2aily Run Rate (*.+ =or0ing2aysBAear) ,
+reen$ields Pre!ises Connected "3000s Pre!ises# -
G# -remises Connected 2aily Run Rate (*.+=or0ing 2aysBAear) '
Fi000s -re!ises? 1
? 20 1%?11
11 161 1.+ ,.6.
1 10 6: 20
* + **7 .8
7, 131
2%55@ ?%566 %5:> 5%6> 6%1@5
991 +*9 +7 ,.6* *9+8
:: ::5 1%01: 1%22: 1%12
1+9* 1189 968 81 7+
306 31 3 636 ,360,
6%@?@
*976
1%5:
69
731
Fi20 4oring $a#s*ear? 1 201 13,1 311 6307 3217 3016 30 367 362
ied (ireless O &atellite Pre!ises Co,ered "3000sPre!ises# 165
ied (ireless O &atellite Pre!ises Connected "3000sPre!ises# 0
1: ?20 ?: :52
10 ?> 6 100
@0: @21 @? @> @61
15 161 1@1 206 21@
@:
2?2
'otal -re!ises Connected 8 All -lat9or!s >000s -re!ises? 1 1 2 1 1361 3171 302 3,7 6301 ,372, 73,
&ource4 NBNCo
8eplo!ent co!pletion planned in 00 pre!ises passed per da "total o$ Bro*n$ields plus +reen$ields pre!ises# *ith
an a,erage o$
6%200 pre!ises passed per da during pea construction "assu!ing a 10 ear rollout
and 250 *oring das per ear#.
NBN Co pro,ided a co!parison *ith rollouts in other countries in the 2011-1? Corporate
Plan% an updated ,ersion o$ *hich is sho*n in hibit 5- belo* and indicates that the NBN
Co $orecast run
rate o$ approi!atel 1.: !illion pre!ises passed per ear% albeit challenging% is
achie,able.
-
8/13/2019 Nbn Co Corporate Plan
69/162
Corporate Plan 2012-15 ?: 6 August 2012
-
8/13/2019 Nbn Co Corporate Plan
70/162
2 :00
? 00
1 :00
1 :001 00
:00
1>0
150
150
10
120
120
:0
1000 so9 -re! ses-assed -er *ear
NBN Co. Ltd.
!%hi&it .' Annual Rollout Comparison with "therCountries
-rHe!ises -aissed-er *ear>Million?
9&A "=eriQon#
?.%
00 pre!ises passed per da during pea construction acti,it#.This co!pares to a $orecast in the 2011-1? Corporate
Plan o$ 6%000pre!ises per da "rounded% ,ersus $orecast dail run rate o$ 5%@00 pre!ises passedper da#.
NBN Co epects that% o,er the ? ears to
-
8/13/2019 Nbn Co Corporate Plan
71/162
1?NBN Co is designing the NBN to be capable o$ deli,ering these speeds to NBN Cos 7etail &er,ice
Pro,iders ")S-s# and (holesale &er,ice Pro,iders "4S-s# ,ia ibre% ied (ireless and &atellite. &peedsactuall achie,ed b retail nd-9sers *ill depend on a nu!ber o$ $actors including the )ualit o$ their e)uip!entand in-pre!ises connection% the broadband plans o$$ered b their ser,ice pro,ider and ho* their ser,ice pro,iderdesigns its net*or to cater $or !ultiple nd-9sers.
Corporate Plan 2012-15 ?> 6 August 2012
-
8/13/2019 Nbn Co Corporate Plan
72/162
NBN Co. Ltd.
++2 Contract with Ericsson and Fi@ed 4ireless First)elease Sites
n August 2011% NBN Co announced that the co!!unities o$ Too*oo!ba% Ta!*orth%
Ballarat% 8ar*in and +eraldton *ould be the $irst to recei,e the ied (ireless Access
&er,ice. (or has co!!enced on all $i,e sites $or the design and construction.
The ied (ireless rollout plan that has been de,eloped taes into account the a,ailabilit
o$ the Transit net*or% spectru! and liel co!!unit consultations $or the building o$
ne* poles and to*ers $or the ied (ireless net*or.
++ Long 'er!Satellite
The planned launch date $or the t*o satellites that $or! the basis o$ NBN Cos Long Ter!
&atellite &er,ice re!ains unchanged $ro! the 2011-1? Corporate Plan% at ;2015. NBN
Co has success$ull co!pleted agree!ents $or the deli,er o$ the satellites and $or
essential ground e)uip!ent. (or *ill continue through ;201? on the planning and
design o$ ground stations and on selecting NBN
Cos satellite launch
partner.
-
8/13/2019 Nbn Co Corporate Plan
73/162
Corporate Plan 2012-15 ?@ 6 August 2012
-
8/13/2019 Nbn Co Corporate Plan
74/162
NBN Co. Ltd.
'his "age is le9t intentionall#
-
8/13/2019 Nbn Co Corporate Plan
75/162
NBN Co. Ltd.
6 NE'4.)5 ).LL.&' AN$C.S'S
6+1 Networ )ollout New$e:elo"!ents
6+1+1
.:er:iew
ro! 1
-
8/13/2019 Nbn Co Corporate Plan
76/162
handled b NBN Co% substantiall
reducing the +reen$ield $orecasts $or ;2011 and
;2012.
Corporate Plan 2012-15 1 6 August 2012
-
8/13/2019 Nbn Co Corporate Plan
77/162
NBN Co. Ltd.
n addition% the 2011-1? Corporate Plan underesti!ated the signi$icant ti!e lag
bet*een the re)uired date o$ ser,ice a,ailabilit o$ the $irst pre!ises in an estate and
the connection and acti,ation o$ all pre!ises on that de,elop!ent. This is particularl
length in Broadacre &ingle 8*elling 9nits "S$&s# de,elop!ents. n these &89
de,elop!ents NBN Co is re)uired to pro,ide ibre across the entire stage o$ the
de,elop!ent "re$erred to as Ilots passed# et% phsical pre!ises are constructed andoccupied at a !uch slo*er rate.
B+ Forecast Ca"italE@"enditure
(ith the rollout o$ ibre to Ne* 8e,elop!ents% !an o$ these de,elop!ents *ill be
connected *ell be$ore Bro*n$ields deplo!ent occurs and the Transit net*or is
operational. This has re)uired NBN Co to i!ple!ent interi! connecti,it arrange!ents
*hilst the Transit net*or is being constructed. As the Transit net*or is built%
connected Ne* 8e,elop!ents sites *ill be !igrated to the per!anent net*or.
The capital in,est!ent is $ront-end loaded and *ill represent signi$icant additional costs asNBN Co needs to4 8esign and build a Te!porar Transit ibre Net*or "''FN# as *ell as
etensions o$ the 8istribution net*or ahead o$ the NBN ibre net*or being
deploed in these geographicall dispersed and relati,el s!all siQe areas. These long
routes $ro! Telstra echanges to the estate boundaries represent a signi$icant
proportion o$ the increased $orecast costs $or Ne* 8e,elop!ents in the 2012-15
Corporate Plan and Pro,ide ibre access aggregation capabilit. NBN Co has de,ised an interi! engineeringsolution% using on-site Te!porar ibre Access Nodes "'8FANs# deploed ,ia a roadside
cabinet% to enable each de,elop!ent to be connected to an interi! Transit ser,ice.
NBN Co has designed the architecture to ensure that passi,e and acti,e assets can be $ull
utilised in the per!anent net*or. The acti,e and passi,e assets are identical to those
deploed in Bro*n$ields and are there$ore able to be re-used. The interi! $ibre build $ro!
the estate boundaries to the !anaged bachaul ser,ice connected at the Telstra
echange location is built to NBN Cos passi,e speci$ications and *ill $or! part o$ the
8istribution net*or *hen the de,elop!ent is connected to the per!anent Point o$
nterconnect "-oI#. As the Transit net*or is deploed% the T-ANs *ill be replaced b
per!anent AN sites and all acti,e electronic co!ponents in the T-ANs are epected to be
re-used in other AN sites.
Ne,ertheless in the short ter! capital in,est!ent *ill eceed pre!ises de!and as the
e)uip!ent capacit *ill not be $ull utilised $or so!e ti!e a$ter the initial de,elop!ent
stages "noting that the le,el o$ utilisation *ill di$$er estate b estate#.
The 2012-15 Corporate Plan also taes account o$ higher design and construction costs
due to !obilisation o,erheads incurred b NBN Cos construction partners. These
!obilisation o,erheads are due to t*o !ain $actors4 'a,ing to deplo a *or$orce in geographicall dispersed and relati,el s!all siQeareas% and there$ore not getting econo!ies o$ scale as en,isaged in Bro*n$ields ibre
&er,ice Area /odules "FSAMs# and
'a,ing to respond to !ultiple truc rolls during the li$eccle o$ the Ne* 8e,elop!ents%as lots passed beco!e pre!ises passed% and as these pre!ises later beco!e occupied.
Corporate Plan 2012-15 2 6 August 2012
-
8/13/2019 Nbn Co Corporate Plan
78/162
NBN Co. Ltd.
C+ Forecast ."eratingE@"enditure
As the In$rastructure Pro,ider o$ Last 7esort% NBN Co *ill pro,ide ibre in eligible
de,elop!ents an*here inside the long ter! ibre $ootprint% regardless o$ location and
tpe% *here re)uested to do so b de,elopers. These de,elop!ents !a range $ro!
Broadacre &89s to large ,ertical /89s% retire!ent ,illages and co!!ercial and industrial
de,elop!ents. The *ide dispersion% as *ell as the di,ersit o$ de,elop!ent tpes% re)uires
national and !ulti$unctional capabilities.
The perating penditure i!pacts o$ this re)uire!entinclude4 Net*or perations $ield sta$$ ha,e to acti,ate pre!ises across a dispersed
geograph% *ith conse)uent resource and scheduling ine$$iciencies the net e$$ect
being higher sta$$ nu!bers and lo*er producti,it ach Ne* 8e,elop!ent is connected ,ia a !anaged interi! Transit ser,ice% selected$ro! a panel o$ &er,ice Pro,iders% to the Po to enable 7&Ps to deli,er ser,ices toresidents in each Ne* 8e,elop!ent. The cost o$ these !anaged ser,ices ,aries
!aredl according to the nu!ber o$ bachaul pro,iders in a particular location. n
!etropolitan $ringe "tpicall *here !ost Broadacre de,elop!ents are# and regional
areas% there is o$ten !ini!al bachaul co!petition and prices are signi$icantl higher
and nteri! Transit costs are incurred to ser,ice the $irst pre!ises in a ne* de,elop!ent%e,en though it !a tae 12 E 1> !onths be$ore that de,elop!ent is populated to
the point o$ e$$icientl using the interi! Transit capacit.
The 2012-15 Corporate Plan assu!es an increased cost per pre!ises $or Ne*8e,elop!ents to re$lect all o$ the abo,e $actors. These costs are based on contracts
alread entered into or under
negotiation
.
-
8/13/2019 Nbn Co Corporate Plan
79/162
Corporate Plan 2012-15 ? 6 August 2012
-
8/13/2019 Nbn Co Corporate Plan
80/162
NBN Co. Ltd.
6+2 Networ )ollout CostForecast
6+2+1 Su!!ar# o9 Ma=or Ca"ital E@"enditure Changes 9ro! 201181 to 201281Cor"orate -lan
Total Capital penditure during the Construction period has increased b F1.billion $ro!F?5.@ billion in the 2011-1? Corporate Plan to F?:. billion in the 2012-15
Corporate Plan A reduction in the costs o$ e)uip!ent has been re$lected in the 2012-15 Corporate Plan%*hich is o$$set b an increase in other costs. These costs relate predo!inantl to
additional labour costs pro,isioned $or $actors such as increased net*or distance
esti!ates% additional *ors in Custo!er Connect and /ulti-8*elling 9nits "M$&s#%
and to higher ,olu!es o$ IBuild 8rops The 2012-15 Corporate Plan assu!es the ter!s o$ the ptus 'C Agree!entare $ull i!ple!ented the e$$ect being an increase in Capital penditure $or the
!igration o$ the ptus 'C subscribers and Additional Capital penditure relating to the i!ple!entation o$ Polic 8ecisionshas been included in the 2012-15 Corporate Plan.
6+2+2 Fi%000 !s o$ co,ered road distance and 206%000 !s o$ phsical net*or distance
"up $ro! 1?0%000 !s o$ co,ered road distance and 1>1%000 !s o$ phsical net*or
distance in 2011-1? Corporate Plan% respecti,el#.
The corresponding cable distances ha,e also been increased to acco!!odate the
increased co,ered road and phsical net*or distances% as *ell as the deplo!ent
o$ Tether Cables "ITpe 2
Architecture#
.
B+ &"date on Networ $esignK $esign o9 the Fi'#"e 2ArchitectureH?
NBN Co has designed the passi,e optical net*or hierarch beginning *ith a ibre
8istribution Area "F$A#% *hich connects approi!atel 200 nd-9sers o,er the local
ibre net*or to a ibre 8istribution 'ub "F$;#. A group o$ up to 16 8As $or! a ibre
&er,ing Area /odule "FSAM#. The 8istribution net*or pro,ides di,erse optical paths
$ro! each ibre 8istribution 'ub to the ibre Access Node% *hich is usuall located in a
Telstra echange. The di,erse optical paths allo* NBN Co to !eet ser,ice restoration ti!es
in the e,ent o$ ibre cuts in the 8istribution net*or.
n the 2011-1? Corporate Plan% NBN Co had based its costing on an architecture
in$or!ed b o,erseas deplo!ents "re$erred to as I'#"e 1 ArchitectureH#. As a
conse)uence o$ the Telstra 8e$initi,e Agree!ents% NBN Co $ocused attention on
opti!ising the architecture $or the re-use o$ the Telstra duct net*or and using Iribbon
rather than Iloose tube $ibre. This resulted in a change to the passi,e net*or design and is
-
8/13/2019 Nbn Co Corporate Plan
81/162
-
8/13/2019 Nbn Co Corporate Plan
82/162
NBN Co. Ltd.
The ribbon $ibre chosen b NBN Co is a 12 $ibre !atri% in *hich 12 $ibres are contained
*ithin an acrlate coating. This !atri allo*s $or all 12 $ibres to be prepared and $usion
spliced si!ultaneousl% signi$icantl reducing the cost o$ e)uip!ent and reducing the ti!e to
recti$ cable cuts.
8ecreases in e)uip!ent costs ha,e no* been $actored into the 2012-15 Corporate Plan as a
result o$ this architectural change and also due to $ibre e)uip!ent contracts alread entered
into.
6+2+ Custo!erConnect
A+ A""roach to Custo!er Connect >Build$ro"sH?
The connection $ro! the street to the pre!ises can be carried out *hen the distribution
and local seg!ents o$ the ibre net*or are being built E a IBuild 8rop or *hen an order
$or a ser,ice is recei,ed $ro! a 7etail &er,ice Pro,ider ")S-# E a I8e!and 8rop.
n the 2011-1? Corporate Plan it *as assu!ed that I8e!and 8rops *ould be used. urther
analsis suggests IBuild 8rops $ro! the street to the pre!ises $or &89s and /89s are
the !ost e$$ecti,e *a to !ini!ise !obilisation G de-!obilisation costs and to realise
producti,it i!pro,e!ents. This is% in part% a conse)uence o$ the greater certaint in uptae
due to the co!!ence!ent o$ the Telstra 8e$initi,e Agree!ents and the ptus 'C
Agree!ent.
The assu!ptions regarding IBuild 8rops are no* as$ollo*s4 8rops to 100 o$ /89 pre!ises passed to a Pre!ises Connection8e,ice "-C$# 8rops to @0 o$ Bro*n$ields &89s to a PC8 "assu!ing 10 non-consent or ,acantho!es# and 8rops to 100 o$ +reen$ields &89s and /89s to a Net*or Ter!ination 8e,ice
"N'$# *here the pre!ises ha,e been co!pleted "pre-installs#.
As part o$ the re,ie* o$ the IBuild 8rop strateg% incre!ental costs ha,e been e!bedded
in this Plan $or the noti$ication process and access to pre!ises $or the installation o$ the
lead-in $ro! street to PC8.
B+ M$&
Ca
-
8/13/2019 Nbn Co Corporate Plan
83/162
an &89% and *ill be co!pounded b the di,ersit in /89 designs% the lo* nu!ber o$ nd-
9ser pre!ises per /89 location "a,erage @ units per /89 building% ecluding duplees#
and the age o$ these /89s
"lac o$ riser
in$rastructure#.
Corporate Plan 2012-15 5 6 August 2012
-
8/13/2019 Nbn Co Corporate Plan
84/162
-
8/13/2019 Nbn Co Corporate Plan
85/162
Business
Broadband.
Corporate Plan 2012-15 6 6 August 2012
-
8/13/2019 Nbn Co Corporate Plan
86/162
NBN Co. Ltd.
The operation o$ the NBN Co net*or% including acti,ation and assurance transactions% *ill
be highl auto!ated through progressi,e capabilit being deli,ered b the &&
progra!!e. 8uring ;201? the Business to Business "B2B# gate*a *ill support
increasing le,els o$ auto!ation bet*een NBN Co and Access &eeers on a non-
discri!inator basis. Progressi,e && capabilit releases *ill enable Access &eeers to
!onitor their ser,ices and operationall support their nd-9sers.
ollo*ing co!pletion o$ the additional !aKor releases it is anticipated that NBN Co
*ill !o,e to*ards a continuous deli,er !odel% *hich *ill allo* )ualit and tested code to
be deli,ered into production on a continuous basis.
n addition% NBN Co is planning a nu!ber o$ Acti,e Net*or 7eleases "AN)s# and
Passi,e Net*or 7eleases "-N)s# to deli,er a range o$ enhanced product and
operational business capabilities% including4 Acti:e Networ )elease >AN)? *ill be released $or net*or *ide deplo!ent inlate 2012 and *ill deli,er /ulticast capabilit and broadband ,oice enhance!ents.
The technolog enablers pro,ide operational capabilit enhance!ents. Acti:e Networ )elease >AN)? *ill be released $or net*or *ide deplo!ent in!id 201? and *ill deli,er ualit o$ &er,ice "oS# architecture and the capabilit $or
higher speeds in the ied (ireless net*or. This *ill enable the National Connecti,it
Net*or "NCN# that pro,ides national Laer 2 and Laer ? ser,ices to support NBN Co
in$rastructure. -assi:e Networ )elease 2 >-N)2? *ill be released $or net*or *ide deplo!ent inlate 2012 and deli,ers passi,e ibre net*or Pre!ises nstall )uip!ent "-IE#.
The esti!ated costs o$ de,eloping and enhancing NBN Cos core T sste!s and $or
supporting additional AN7 and PN7 ha,e been included in the 2012-15 Corporate Plan.
6+ I!"le!entation o9 ."tus ;FCAgree!ent
The 2011-1? Corporate Plan did not include the i!pact o$ an agree!ent $or the !igrationo$ the
ptus 'C subscribers to the NBN o,erti!e.
The 2012-15 Corporate Plan incorporates the !igration o$ an initial addressable nu!ber
o$ 0.5 !illion ptus 'C subscribers under the ptus 'C Agree!ent.
6+ I!"le!entation o9 -olic#$ecisions
As noted in &ection .?% -olicy 2ecisions% the 2012-15 Corporate Plan
incorporates the i!ple!entation o$ se,eral Polic decisions% being4 Points o$
nterconnect% Ne* 8e,elop!ents% Batter Bacup% ied (ireless and Long Ter!
&atellite anticipated technolog upgrades% ibre net*or $ull co,erage o$ Band 1 and Band
2% Public n$or!ation on /igration "-IM#% 9& Paphones% Public nterest Pre!ises "-I-s#%
and T9&/A Le,.
No other outstanding polic decisions ha,e been )uanti$ied and incorporated into the
2012-15
Corporate
Plan.
-
8/13/2019 Nbn Co Corporate Plan
87/162
Corporate Plan 2012-15 : 6 August 2012
-
8/13/2019 Nbn Co Corporate Plan
88/162
NBN Co. Ltd.
'his "age is le9t intentionall# 6 August 2012
-
8/13/2019 Nbn Co Corporate Plan
89/162
NBN Co. Ltd.
, MA)5E' EN(I).NMEN' AN$-).$&C'S
,+1 Maret En:iron!ent&"date
,+1+1 Maret $e!and Assu!"tions )e!ain theSa!e
/aret de,elop!ents and trends in the past ear ha,e been in-line *ith "or ahead o$#
epectations% supporting NBN Cos core re,enue assu!ptions contained in the 2011-1?
Corporate Plan. As $urther eplained belo*% the $ollo*ing e re,enue dri,ers re!ain
largel unchanged $ro! the 2011-1?
Corporate Plan. e pointsinclude4
&trong data usage gro*th has continued since2011-1?
ied broadband speed gro*th has been restricted on legac non-$ibrenet*ors
NBN Cos pricing !odel has been ,alidated b the!aret and
7esidential *ireless-onl ho!es are *ithinepectations.
(ith co!!ercial ser,ices recentl launched% the integration and analsis o$ actual nd-9ser
data *ill be included in $uture updates to the Corporate Plan.
,+1+2 $ata &sageGrowth
8ata usage continues to increase at an annual rate considerabl higher than thatassu!ed in the
2011-1? Corporate Plan% as indicated b the $ollo*ing range o$ recent eternal bench!ar
gro*th rates% see hibit :-1.
!%hi&it 7'1 5ummary o 2ata Dsage
enchmar0s
5e# Bench!ars $ata &sage "er !onth Growth
Australia
AB& E 'istorical trend - iedBroadband
8o*nloads per subscriber "+B G!th#
"AB& >15?.0% 8ece!ber 2011#
2011 E 20 +BG!onth >0 ;o;
51 ?r CA+7
Telstra E 'istorical trend - Broadband
data tra$$ic per user on the CopperNet*or
"Telstra A+/ planator/e!orandu! - +rant &a!uel 7eport%2011#
nGa ;11 - >0 ;o;
International
-
8/13/2019 Nbn Co Corporate Plan
90/162
-
8/13/2019 Nbn Co Corporate Plan
91/162
NBN Co. Ltd.
ricsson E +lobal orecast - ied
Broadband Tra$$ic gro*th
"Tra$$ic and /aret 7eport% >5 TBG!onth to 115%11
TBG!onth# o,er the last 12 !onths. The total a,erage blended "$ied and !obile#!onthl usage per user "the AB& ied plus (ireless categories# is no* circa 10.
+BG!onth "a 5:.> or ?.> +BG!onth increase co!pared to the 8ece!ber 2010
uarter results#. The blended "$ied and !obile# !onthl usage per subscriber
gro*th o$ 5:.> is a result o$ an >0.5 gro*th in $ied line !onthl usage per
subscriber and 5.6 gro*th in !obile !onthl usage per subscriber o,er the 12
!onths to 8ece!ber 2011 and
o ied broadband data accounted $or @?.? o$ the total !onthl data do*nloaded
o,er the period.
Telstra A+/ planator /e!orandu!15 cites that the co!pan had *itnessed an E8+Fgrowth in &road&and data traic per user on the Copper /etwor0 in the inancial yearended ,+ :une
*+11 "re$er to hibit :-2#.
!%hi&it 7'* ;elstra>s #i%ed road&and ;raic Growth
&ource4 +rant &a!uel 7eport% Page 1?16
1http4GG*** .abs.go ,.auGauss tats GabsR.ns$G!$G>15?.0Spen8ocu!ent.
15Telstra A+/ planator /e!orandu! 2011 "Page 1?#.
h ttp 4GGt els tra.ic e . in te ra c ti, ein , e s to r.co !.a u Gtelstra1101G pla n a to r/ e ! o ra ndu !2011Gi nd e .
h t !l.16
h ttp 4GG*** .tels tra.co !.a u Ga b o u tte l s traGd o* nlo a d Gd o c u ! e n tG pla n ato r- / e ! o ra ndu ! . pd $.
http://www.abs.gov.au/ausstats/abs@.nsf/http://telstra.ice4.interactiveinvestor.com.au/telstra1101/ExplanatoryMemorandum2011/index.htmlhttp://telstra.ice4.interactiveinvestor.com.au/telstra1101/ExplanatoryMemorandum2011/index.htmlhttp://telstra.ice4.interactiveinvestor.com.au/telstra1101/ExplanatoryMemorandum2011/index.htmlhttp://telstra.ice4.interactiveinvestor.com.au/telstra1101/ExplanatoryMemorandum2011/index.htmlhttp://telstra.ice4.interactiveinvestor.com.au/telstra1101/ExplanatoryMemorandum2011/index.htmlhttp://telstra.ice4.interactiveinvestor.com.au/telstra1101/ExplanatoryMemorandum2011/index.htmlhttp://telstra.ice4.interactiveinvestor.com.au/telstra1101/ExplanatoryMemorandum2011/index.htmlhttp://telstra.ice4.interactiveinvestor.com.au/telstra1101/ExplanatoryMemorandum2011/index.htmlhttp://telstra.ice4.interactiveinvestor.com.au/telstra1101/ExplanatoryMemorandum2011/index.htmlhttp://telstra.ice4.interactiveinvestor.com.au/telstra1101/ExplanatoryMemorandum2011/index.htmlhttp://telstra.ice4.interactiveinvestor.com.au/telstra1101/ExplanatoryMemorandum2011/index.htmlhttp://telstra.ice4.interactiveinvestor.com.au/telstra1101/ExplanatoryMemorandum2011/index.htmlhttp://www.telstra.com.au/abouttelstra/download/document/Explanatory-Memorandum.pdfhttp://www.telstra.com.au/abouttelstra/download/document/Explanatory-Memorandum.pdfhttp://www.telstra.com.au/abouttelstra/download/document/Explanatory-Memorandum.pdfhttp://www.telstra.com.au/abouttelstra/download/document/Explanatory-Memorandum.pdfhttp://www.telstra.com.au/abouttelstra/download/document/Explanatory-Memorandum.pdfhttp://www.telstra.com.au/abouttelstra/download/document/Explanatory-Memorandum.pdfhttp://www.telstra.com.au/abouttelstra/download/document/Explanatory-Memorandum.pdfhttp://www.telstra.com.au/abouttelstra/download/document/Explanatory-Memorandum.pdfhttp://www.telstra.com.au/abouttelstra/download/document/Explanatory-Memorandum.pdfhttp://www.telstra.com.au/abouttelstra/download/document/Explanatory-Memorandum.pdfhttp://www.telstra.com.au/abouttelstra/download/document/Explanatory-Memorandum.pdfhttp://www.telstra.com.au/abouttelstra/download/document/Explanatory-Memorandum.pdfhttp://www.abs.gov.au/ausstats/abs@.nsf/http://telstra.ice4.interactiveinvestor.com.au/telstra1101/ExplanatoryMemorandum2011/index.htmlhttp://telstra.ice4.interactiveinvestor.com.au/telstra1101/ExplanatoryMemorandum2011/index.htmlhttp://telstra.ice4.interactiveinvestor.com.au/telstra1101/ExplanatoryMemorandum2011/index.htmlhttp://www.telstra.com.au/abouttelstra/download/document/Explanatory-Memorandum.pdf -
8/13/2019 Nbn Co Corporate Plan
92/162
Corporate Plan 2012-15 50 6 August 2012
-
8/13/2019 Nbn Co Corporate Plan
93/162
NBN Co. Ltd.
+loball% data $ro! Tele+eographs +lobal Band*idth 7esearch &er,ice " also
agreed that the introduction o$ PT= products had increased their ho!e
entertain!ent eperience *ith the !ost popular $eatures being do*nloading and
*atching !o,ies "?1#1:
Telstra research in 2011 $ound that the a,erage Australian ho!e had $our net-connected de,ices. n the preceding ear hal$ o$ those ho!es had added at least one
!ore1>
1:Telstra Connected 'o!e nde 7eport h tt p 4GG*** .te ls tra.co !.a u Ga b o u ttels traG! edia-
c e n tr e Ga n no un c e ! en t sGtels tra- s*itches-on-ne*-ipt,-content-and-apps.!l.1>
Telstra doubles plan data allo*ance $or Broadband subscribers
ht tp4GG***.telstra.co!.auGabouttelstraG !edia- centreGannounce!entsGdouble-the-data-boost-$or-telstra-
bundle-custo!ers.!l.
http://www.telstra.com.au/abouttelstra/media-centre/announcements/telstra-http://www.telstra.com.au/abouttelstra/media-centre/announcements/telstra-http://www.telstra.com.au/abouttelstra/media-centre/announcements/telstra-http://www.telstra.com.au/abouttelstra/media-centre/announcements/telstra-http://www.telstra.com.au/abouttelstra/media-centre/announcements/telstra-http://www.telstra.com.au/abouttelstra/media-centre/announcements/telstra-http://www.telstra.com.au/abouttelstra/media-centre/announcements/telstra-http://www.telstra.com.au/abouttelstra/media-centre/announcements/telstra-http://www.telstra.com.au/abouttelstra/media-centre/announcements/telstra-http://www.telstra.com.au/abouttelstra/media-centre/announcements/telstra-http://www.telstra.com.au/abouttelstra/media-http://www.telstra.com.au/abouttelstra/media-http://www.telstra.com.au/abouttelstra/media-http://www.telstra.com.au/abouttelstra/media-http://www.telstra.com.au/abouttelstra/media-http://www.telstra.com.au/abouttelstra/media-http://www.telstra.com.au/abouttelstra/media-http://www.telstra.com.au/abouttelstra/media-http://www.telstra.com.au/abouttelstra/media-http://www.telstra.com.au/abouttelstra/media-http://www.telstra.com.au/abouttelstra/media-http://www.telstra.com.au/abouttelstra/media-http://www.telstra.com.au/abouttelstra/media-http://www.telstra.com.au/abouttelstra/media-http://www.telstra.com.au/abouttelstra/media-http://www.telstra.com.au/abouttelstra/media-http://www.telstra.com.au/abouttelstra/media-http://www.telstra.com.au/abouttelstra/media-http://www.telstra.com.au/abouttelstra/media-http://www.telstra.com.au/abouttelstra/media-http://www.telstra.com.au/abouttelstra/media-http://www.telstra.com.au/abouttelstra/media-http://www.telstra.com.au/abouttelstra/media-http://www.telstra.com.au/abouttelstra/media-http://www.telstra.com.au/abouttelstra/media-http://www.telstra.com.au/abouttelstra/media-http://www.telstra.com.au/abouttelstra/media-http://www.telstra.com.au/abouttelstra/media-http://www.telstra.com.au/abouttelstra/media-http://www.telstra.com.au/abouttelstra/media-http://www.telstra.com.au/abouttelstra/media-http://www.telstra.com.au/abouttelstra/media-http://www.telstra.com.au/abo
top related