NBN Co plans 1 million premises passed in FY15

NBN Co plans 1 million premises passed in FY15

Summary: With NBN Co reporting revenues of AU$60 million for the last financial year, the company is targeting passing 1 million premises by the network at the end of June 2015.

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NBN Co is aiming to have 1 million premises in Australia able to order a service on the National Broadband Network (NBN) by the end of June 2015.

CEO Bill Morrow said at the company's annual results presentation (PDF) that the target is part of NBN Co's new corporate plan that has yet to be approved by the Australian government, but said that over 1 million homes would be able to connect to the network by the end of the financial year, up from 552,000 "premises serviceable" as of the end of June 30, 2014.

NBN Co is also aiming to have approximately 480,000 customers on the network across the various technologies, up from 210,000 at the end of June this year.

In the first 15 NBN launch sites where the copper network has been disconnected, NBN Co was reporting a 70 percent take-up rate of services, something that Morrow said would need to be replicated for the rest of the rollout, with 8 million customers connected in order for the company to meet its return rate.

In what had been a year of "radical change" for NBN Co, with the change of government moving NBN Co from a 93 percent fibre-to-the-premises rollout to a fibre-to-the-node, hybrid fibre-coaxial (HFC), and fibre-to-the-premises rollout, NBN Co had seen AU$60 million in telecommunications revenue, with AU$31 million from fibre services, AU$2 million from fixed wireless, AU$12 million from satellites, and AU$15 million from capacity charges.

NBN Co reported a negative EBITDA of AU$1.004 billion, and operating expenses of AU$1.065 billion.

In spite of the NBN cost-benefit analysis indicating that most Australian users would not need more than 48Mbps by 2023, 20 percent of early NBN users on the fibre are taking the highest 100Mbps plan. Average data throughput on the NBN is 77GB per month.

nbn-co-plans-1-million-premises-passed-in-fy15
(Image: Screenshot by Josh Taylor/ZDNet)

Contracts have been issued for construction of the network out to over 1 million premises, as NBN Co continues trials of alternative technologies, including fibre to the basement and fibre to the node.

There were 50 premises across eight sites in Melbourne connected to the NBN via fibre to the basement, achieving average speeds of 100Mbps down, and 45Mbps up.

On the 10 nodes in Woy Woy, initial speed results varied between 95Mbps and 97Mbps down, and 28Mbps and 34Mbps up.

Topics: NBN, Government, Government AU, Australia

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Armed with a degree in Computer Science and a Masters in Journalism, Josh keeps a close eye on the telecommunications industry, the National Broadband Network, and all the goings on in government IT.

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7 comments
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  • .

    So That $1 billion expenditure becomes say $2 billion expenditure after changing to FTTN? due to the nature of FTTN.

    And the 77GB for the 20% on high speed, will be lost due to being on FTTN.

    Further profit losses.
    DanielZenno
    • Despite the rhetoric

      Despite the cherry picked, heavily massaged results reported by the LNP and NBN Co so far about so-called 'real world' performance of the first FTTN connections, the reality of the technology dictates that in real-world deployments with hundreds of premises connected per node, most of those won't be able to achieve much greater than 50mbps (with significant numbers not even hitting 25mbps). Without those speeds you lose the higher RPU plans. Without those speeds you will in fact have fewer customers on your network period, because the product costs the same but delivers less.

      So the NBN will have higher operating expenses coupled with lower revenue, leading to lower profitability. Will that lower profitability be low enough to make the project unprofitable to the government overall? Time will tell, but it will be a near thing. And if it is revenue negative long term, that makes the whole thing an on-budget expense.

      Oh and if competitors like TPG and Telstra are allowed to compete at the wholesale level and cannibalise NBN's market, a revenue negative outcome is a forgone conclusion.

      Well played, Mr Turnbull.
      TrevorX
  • TBN

    1 Million locked in FTTN Telstra customers? Good for Telstra, bad for the consumer who misses out on choosing from 43+ providers on http://nbncompared.com.au
    nbnSP
    • 'Premises Passed" Crap!

      Our Fixed Wireless tower was activated & my address listed as "Ready for Service" 2 months back.
      So I immediately signed up with a provider & had the equipment installed.
      But after a week of trouble shooting to find out why my connectio to that tower wasn't providing any service it turms out 'There's a problem with the POI" & of the 7 NBN Listed providers I've contacted to date (even Telstra) state they are unable to provide me with a service.
      So I'm now on the NBN with a "Superfast Internet Connection" to my tower.
      Just a pity it stops there & I'm still struggling along on my copper ADSL1.
      Well done Malcolm!
      grump-a1eeb
  • What about the HFC network?

    All the figures to date appear to be forecasts for numbers of premises passed by the NBN, and able to subscribe to the network.

    Well, if approx. 30% of Australian households will access the MTM NBN via the existing HFC networks, surely by the end of 2015 these figures would be a lot higher. Or is there something that I'm missing?

    I mean apart from the fact that NBN Co doesn't yet have access to the HFC (or copper) networks, and it may take some re-jigging to resolve contention issues.

    What's required to make the existing HFC NBN ready, and how long will the transition take?
    Perth SteveH
    • What's needed...

      They will need to rollout to an additional 25% of current premises in order to "fill the gaps" for those neighborhoods and make the HFC part of the NBN.
      Additionally, they will need to do a large amount of additional nodes as the number of users would go up dramatically.
      Finally, if they want to allow for a guaranteed access to phone service in those areas (power outages, etc...) they will need to convert to the Optus method of adding battery backups to all the amplifiers along the line so they can avoid a service blackout of VOIP phones.
      viditor
      • forgot...

        Just to add, they will also need to transfer the lines out of the Telstra building and into NBNCo buildings (or take over the Telstra buildings) as well as transferring the billing and maintenance systems over so that it works within NBNCo. They will also need to figure out how to configure the POIs (Points of Insertion where the other RSPs connect) so that all service providers will have equal access...
        viditor