NBN

  • Consumers are paying the price for government rules designed to protect NBN Co’s monopoly and help ensure it recovers the cost of building its network, Vocus Group chief executive Kevin Russell has argued. “The real market value of the NBN is far, far less than what it cost to build,” the CEO said today. NBN Co’s decision-making “is driven as a monopoly targeting financial returns, rather than consumer needs and market reality.” In remarks prepared for the ACCANect conference of the Australian Communications Consumer Action Network, the Vocus CEO said that because NBN Co’s financial targets are based on recovering the network’s build cost, “prices are far higher than would be achievable in a market-led environment.” The Vocus chief executive took aim at NBN Co both over its prices and its approach to wholesale pricing. In the ADSL era, the prices charged by Dodo, which is owned by Vocus, consistently trended downwards, he said. “This is in stark contrast to Dodo’s NBN plans, where all we have done is continually put prices up, to cover NBN’s increasing wholesale costs,” the CEO said. Accessing Telstra’s copper network for ADSL services cost around $15 a month, compared to an average wholesale cost of $44 on the NBN. “That’s around a 300-per-cent increase in wholesale costs from ADSL to NBN,” the Vocus CEO said. “And consumers don’t have an option. If they want fixed-line broadband, they have to be on the NBN.” One of the key charges levied by NBN Co on retail service providers (RSPs) is CVC. RSPs pay both an access charge per service (AVC), as well as CVC, which is a capacity-based charge (some NBN Co products bundle both access and bandwidth).  CVC is “a download tax on consumers” that “creates artificial scarcity where there is none,” Russell argued. “The overwhelming...
  • Optus says it is working to improve the experience of migrating to the NBN, with the telco’s CEO, Allen Lew, today revealing details of an initiative to smooth the transition to the new network. In notes prepared for an address to ACCANect, the conference of the Australian Communications Consumer Action Network (ACCAN), Lew revealed that the telco has invested “tens of millions of dollars” in the “Optus NBN champion” program. The program is designed to address a range of frustrations encountered by customers during the migration to the NBN. Those include confusion caused by the hand-off between sub-contractors, NBN Co and retail service providers (RSPs), struggles with installation and chasing answers to questions, lengthy activation processes, and a lack of visibility of the process for customers. “We are proactively reaching out to existing customers who are migrating to the NBN to reassure them that one person will manage their order from receipt right through to completion and for the first 30 days of activation,” Lew said. “This isn’t a promise to do; we have been embedding this since May and slowly building scale so that we can offer it to all our customers.” The CEO said that, over the last 18 months, Optus has made “significant changes” to its operations “to ensure the customer is at the centre of every decision we make”. That includes the launch of a “customer academy” for employees. “Our call centre agents now have more training and more authority, so they can solve issues without having to transfer calls so customers aren’t passed around,” Lew said. “We have added more agents, too. This means we have massively reduced our wait times. In fact, we just received new stats that our average wait time – which a year ago was a completely unacceptable – is now...
  • NBN Co has installed Infinera’s Transcend software defined networking (SDN) solution across its 60,000km fibre optic transit network. The SDN technology features service rerouting capabilities for dense wavelength-division multiplexing (DWDM)-based networks, which allow network operators to restore customer services by automatically rerouting traffic when faults occur. The reconfigurable optical add-drop multiplexer (ROADM) technology enhancements introduced on the Infinera 7300 Series Multi-Haul Transport Platform will allow NBN Co to increase its network resiliency and reliability through automatic service restoration capabilities across its transit network. “The Transcend SDN solution was deployed and integrated with our systems, giving us the capability to increase service availability to some of the most remote locations across Australia,” NBN Co chief network deployment officer Kathrine Dyer said. “This will give our network increased resiliency and help ensure that our customers get the best possible experience when migrating to NBN Co’s broadband access network.” Specifically, NBN Co’s network enhancements are based on Infinera’s 7300 multi-haul DWDM platform with Infinera’s Transcend SDN solution spanning several transport layer technologies – such as optical DWDM layers and electrical Optical Data Unit (ODU) switching layers – to provide end-to-end service control and enable SDN-based service control for Infinera’s optical and packet-optical transport portfolio.  “Transcend’s service restoration and management capabilities are ideal for network operators like NBN Co to differentiate themselves in a competitive market by providing the most reliable services,” Infinera senior vice president of worldwide sales Bob Jandro said. Join the newsletter! Error: Please check your email address. Tags nbn cosoftware defined networkingInfinera More about AustraliaNBN CoTranscendTransport 10 minutes mail – Also known by names like : 10minemail, 10minutemail, 10mins email, mail 10 minutes, 10 minute e-mail, 10min mail, 10minute email or 10 minute temporary email. 10 minute email address is a disposable temporary email that self-destructed after a 10 minutes....
  • NBN Co seeking to grow its share of the enterprise networking market is a “little bit of a surprise” for Telstra, the telco’s CEO Andy Penn says. Addressing media during a briefing at the telco’s enterprise conference, Telstra Vantage, Penn said that it was particularly surprising because the rollout of the NBN was “slowing down” as it enters its final stages while NBN Co was simultaneously “diverting capital into building more fibre in CBDs”. “Effectively what it means at a practical level is capital is being diverted from rolling out the core purpose of the NBN to this, so that’s a surprise,” Penn said. “I had understood the purpose of the NBN was to provide broadband connectivity to every household in Australia not to build fibre for enterprise customers,” the CEO said, adding that “lots of telcos” already have fibre throughout CBDs. NBN Co has indicated it intends to eventually grow its revenue from businesses to $1 billion a year. Last month it revealed that its FY19 revenue from the business segment had grown 54 per cent year-on-year. “We are making great progress with the business segment contributing more than $388 million in revenue in FY19 and we expect this segment to remain solid and for residential and business customer demand for higher speed tiers to continue in FY20,” said NBN Co CEO Stephen Rue. In October 2018 NBN Co launched an Enterprise Ethernet offering. The service “was built in recognition of the fact that businesses, particularly large organisations, typically have higher levels of corporate data requirements due to large-scale distributed workforces, operating data-hungry applications and a higher incidence of mission-critical systems such as enterprise network systems and cloud-based solutions,” NBN Co’s corporate plan states. Another element of NBN Co’s business strategy is its Fibre Expansion Program, which extends existing...
  • Telstra has come good on analyst sentiment that NBN Co’s latest corporate plan issued on Friday will buffet its market guidance, telling the ASX on Monday opening that its overall revenue and cash flow will take a hit because of slower than anticipated rollout. The telco has shaved back its predicted total income by around $400 million, booking in its new range at between $25.3 billion to $27.3 billion for FY20, down from $25.7 billion to $27.7 billion. “Telstra no longer anticipates FY20 being the year of peak nbn headwind and now estimates this will occur in FY21. The changes to forecast activations in NBN Co’s Corporate Plan 2020 also has the effect of deferring Per Subscriber Address Amount (PSAA) receipts from NBN Co in FY20 into future periods.” However the delay in the rollout has a silver lining for the local telco giant because it effectively defers some of the hit it will have to take on the government mandated network, prompting Telstra to modestly up its earnings before interest tax, depreciation and amortisation by $100 million to between $7.4 billion to $7.9 million. But it cautioned the effect was merely down to a matter of timing. “Telstra confirms that the NBN Co Corporate Plan 2020 does not alter the view, provided to the market on 15 August 2019, that underlying EBITDA excluding in-year nbn headwind is expected to grow by up to $500 million in FY20,” Telstra said in a statement. Ironically, delays in NBN connections broadly benefit Telstra because it gives the telco  more time to muscle-up new faster mobile services like 5G that could challenge the user experience of lower speed NBN plans offered by retail service providers, especially in metro areas. Telstra had warned the market on Friday the changes set out in the NBN...
  • Changes made by NBN Co to the timing of the National Broadband Network mean that Telstra for the third year in a row has had to revise its financial forecasts. NBN Co last week released an updated corporate plan that revealed changes to its activation targets for FY20. “Given the current priority on network optimisation and the degree of civil build required for FTTC [fibre to the curb], there has been a shift in phasing during FY20 for the deployment and activations,” the updated document states. “This extended the end point for the respective 18-month migration periods for some customers beyond the previously forecast timing.” (Once an area is declared ready for service by NBN Co, households have 18 months to migrate from the copper network to the NBN.) NBN Co cut by 500,000 to 1.5 million the number of premises it expects to be connected in FY20. The company said it expects to connect 8.1 million premises by 30 June 2021, which is around six months later than it previously expected. “Telstra’s FY20 guidance provided to the market on 15 August 2019 was predicated on NBN Co’s previous Corporate Plan 2019 and assumed the nbn rollout and migration in FY20 would be broadly in accordance with the 2019 plan,” Telstra said in a statement released to the ASX. As part of the ‘definitive agreements’ (DA) between NBN Co and Telstra, Telstra receives a range of payments relating to NBN Co use of infrastructure such as pits and ducts. However, it also receives Per Subscriber Address Amount (PSAA) receipts, which relate to the migration of customers away from Telstra’s copper network. Telstra said in August that for FY20 it was expecting net one-off NBN DA receipts of between $1.6 billion to $2.0 billion. Because of the NBN rollout changes, some...