NBN Co goes commercial

NBN Co goes commercial

Summary: From tomorrow, the 14,000 residents whose homes have been passed by the National Broadband Network's first release site roll-out and aren't already locked into alternate contracts with their internet service provider will be able to order an NBN service.

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From tomorrow, the 14,000 residents whose homes have been passed by the National Broadband Network's first release site roll-out and aren't already locked into alternate contracts with their internet service provider will be able to order an NBN service.

Up until this point, people have only been able to get connections by joining a trial held by their internet service provider. Within this trial framework, 800 premises have been connected to the network.

Even those who haven't agreed to have their houses connected to the network can talk to their internet service provider, according to NBN Co, which said that in such cases, the company would simply install the Network Termination Device and the line at the same time. NBN Co said that those already on contracts and those who rented their accommodation needed to think twice, however, before signing up to a connection.

"Consumers need to consider their existing telephone and broadband contract arrangements before looking to switch services. Also, people living in rented accommodation and/or apartment blocks will need to consider their lease conditions and what approval is needed from bodies corporate and/or landlords," the company said in a statement.

The commercial launch of services will see revenue stream into NBN Co's coffers.

"The launch of commercial services over the fibre network in the mainland First Release Sites marks a significant milestone for the delivery of the NBN. It is the start of a new era of service and competition as providers begin to offer a range of different plans over our open-access wholesale network," NBN Co head of product development and sales, Jim Hassell, said in a statement.

"It is also an important landmark for NBN Co as we start to generate our first revenue from fibre services. Not only is the NBN a project that will see our national infrastructure upgraded, it is an investment through which revenues are planned to eventually repay the initial outlay and deliver a return to taxpayers."

Today has also seen internet service provider ISPOne announce that it has set its wholesale pricing for National Broadband Network services.

For consumers, Internode, Exetel and iiNet have all released their commercial pricing, although Internode has indicated that it may decrease its pricing.

Meanwhile, Primus has confirmed that it will keep its trial pricing for commercial services. Optus said that it planned to unveil its NBN products in the coming weeks once Optus and NBN Co had reached a wholesale broadband agreement. TPG told ZDNet Australia that it was too early to put a price on its commercial services. Telstra had not responded to queries about its pricing at the time of publication.

Topics: Broadband, Government, Government AU, Telcos, NBN

Suzanne Tindal

About Suzanne Tindal

Suzanne Tindal cut her teeth at ZDNet.com.au as the site's telecommunications reporter, a role that saw her break some of the biggest stories associated with the National Broadband Network process. She then turned her attention to all matters in government and corporate ICT circles. Now she's taking on the whole gamut as news editor for the site.

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Talkback

14 comments
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  • you'd have to assume most people will already be on contracts, wouldn't you?

    however yet another nail in the coffin for the dooms dayers, ironically as their more precious than life itself roi starts rolling in!
    Beta-9f71a
    • While the rat-race and attrition of mobile hardware means that most people are on contract for their mobile phones, Land-line Internet doesn't have to be such a long term investment.
      ADSL modems last much longer than a 24 month contract. In the rare case where htey do fail, they can be picked up for less than a months subscription. ISPs allow you to change your subscription rate without renewing your contract.
      I would be surprised if anyone interested in signing up to the NBN would still be under contract, unless they are very ignorant of the industry and market forces.
      Salvo-7fe24
      • really, as far as i know telstra and optus still primarily do the 24mth contract and they are still the main providers (along with iinet). so surely the majority who may be in the nbn area, will still be on somewhere between 0-24 mth contracts?
        Beta-9f71a
      • Huh? Only people who got Internet for the first time from Telstra or Optus in the last 2 years would still be on such contracts. I can't see why that would be a high percentage. You're picking up a very minor qualifier and trying to make a big deal out of it.
        warwickallison
        • err

          what you may find is, a lot of those companies who have introduced better plans, will have made it a prerequisite to re-contract for another 24 monyhs, if you wished to access those better plans. you don't think they are going to let us pay less for more, un-contracted do you?

          this is why they have dropped prices to lock people into new contracts as the nbn looms. its simple business practice, it is real and it is a big deal, imo.
          Beta-9f71a
  • No, as the services have only been in trial stage. That means that of the 14,000 homes passed, only 800 have services. I'm sure many will now jump on board.
    suzanne.tindal
    • I'm not sure if you were replying to Beta's comment above about contracts - what he meant, I think, is that if people have signed up for a 12, 18 or 24 month contract with an ISP on ADSL, then they may not be free to switch over right away to NBN fibre.

      However, I'm sure that at least some of the ISPs/RSPs would be willing to migrate customers to NBN fibre within a contract period, simply because it would be preferable to losing them as customers altogether (which was probably the practical intent of the contract, anyway).

      I do think there will be a moderately good takeup in the first six months - perhaps around 15-20%, based on the experience in Tasmania.

      One of the biggest factors will be how much effort RSPs themselves make to actively migrate their customers - iiNet has indicated that they will save up to 27% of costs using NBN, so it would clearly be in their financial interest to do so.

      Interesting times! Don't forget that the cohorts of early, mid and late adopters are likely to follow the familiar bell curve for new technologies - that's what we can expect to see.
      Gwyntaglaw
      • that was the gist of it :-)
        Beta-9f71a
  • thanks suzanne.

    what i was actually alluding to was existing non-nbn contracts as per the first paragraph, thus perhaps precluding an immediate move to nbn, until contracts end or early termination fees paid!

    for example someone with say optus not able to move over to iinet nbn, due to contractual obligations.

    however though, maybe for example, existing (say) iinet adsl customers, may be able to move across to iinet nbn plans, without an early termination fee? this would be an easy way to re-contract and lock customers in before the two bigger boys come along, i suppose?
    Beta-9f71a
    • Ah, great minds again...
      Gwyntaglaw
    • Ahh. Well yes, they might be on contracts. I'm on month to month myself, so if they ever work out the rental problem and make their way to Glebe I could easily jump ;)
      suzanne.tindal
  • had to get in quick to beat you my friend...LOL!
    Beta-9f71a
  • Great news for the NBN, I'm a little jealous to be honest.
    RealismBias
  • I like this bit:

    "It is also an important landmark for NBN Co as we start to generate our first revenue from fibre services. Not only is the NBN a project that will see our national infrastructure upgraded, it is an investment through which revenues are planned to eventually repay the initial outlay and deliver a return to taxpayers."

    Most of the "anti-NBN" people call the outlay of building it a "cost", but as it'll be paid back, and then some, it's actually an investment for Aussie taxpayers, unlike the Liberals "throw money down the drain" policies...
    Tinman_au