NBN Co rakes in $356K in 2011

NBN Co rakes in $356K in 2011

Summary: NBN Co brought in $356,000 in revenue in its first few months of charging for active services on the National Broadband Network (NBN), a new report has revealed.

TOPICS: NBN, Broadband

NBN Co brought in $356,000 in revenue in its first few months of charging for active services on the National Broadband Network (NBN), a new report has revealed.

The figure came out in NBN Co's six-monthly report to the end of December 2011, published by the government yesterday. Since commencing billing retail service providers (RSPs) for the active services on the NBN in October, the company has raked in $356,000 in revenue in that time from the 2095 premises connected in the first release site, as well as the 110 premises in new developments and the 2197 premises connected to NBN Co's interim satellite service.

NBN Co said that as of 16 March 2012, there are now 7282 customers with active services over the NBN, with a total of 18,200 premises passed.As the company gets up and running and continues construction, it is still running at a massive loss. In the six months to 31 December 2011, NBN Co had a consolidated operating loss of $221 million, including $101 million in employee-related expenses, $40 million for IT and facilities expenses and $29 million for external services.

NBN Co had a total capital cost of $346 million for the six-month period, including $86 million for the fibre network roll-out and $12 million in costs for the fixed-wireless and satellite service. The company spent $124 million in that time on its datacentres, national support and operations centres and operations support systems and business support systems (OSS/BSS).

In November, NBN Co migrated all of its Oracle applications that had been previously hosted in an outsourced datacentre to NBN Co's own datacentre, ending a two-year IBM infrastructure managed service contract. The company also migrated its portals and online services, including NBN Co's website from the Macquarie Telecom datacentre to NBN Co's own datacentre in the same time period.

At the end of 2011, NBN Co was sitting on $1.14 billion in cash from government equity injections, and had accrued $29.3 million in interest.

NBN Co's contact centre, which was set up in Melbourne in April last year to "dispel" confusion from the public surrounding the roll-out of the Federal Government's $35.9 billion project, had taken a total of 12,692 calls in the six months to 31 December 2011. Of these, NBN Co said just 81 were complaints about the roll-out.

The company has today announced that it plans to bring the contact centre in-house, with a new contact centre to be located in Varsity Lakes on the Gold Coast in Queensland. NBN Co said that this new contact centre will be up and running later this year, and is expected to employ around 130 people.

Turnbull eyes greenfields delays

In a blog post responding to the report, Shadow Communications Minister Malcolm Turnbull focused on the revelation that just 110 customers had active services in greenfields sites. A total of 951 sites have been connected, which Turnbull said was just 0.3 per cent of the houses that NBN Co was scheduled to connect by June 2011.

"The latest NBN progress report ... underscores that NBN Co has again utterly failed to keep up with demand for connections in new or 'greenfields' areas," Turnbull said.

He said that the government's decision to make NBN Co the fibre provider of last resort for new housing estates with over 100 premises had "upended" the fibre provider industry, which couldn't compete with the free service that NBN Co was offering developers, and that this had led to lengthy delays for new houses to get connected to the NBN.

"Before Senator Conroy upended the sector, greenfields communications infrastructure in Australia was a thriving market served by numerous competitive and efficient private players. Even his department has acknowledged as much," Turnbull said.

"But Senator Conroy's ill-considered decision to assign exclusive responsibility for rolling out infrastructure at greenfields sites with more than 100 lots to his taxpayer-funded, government-operated monopoly has led to lengthy delays for developers, and immense frustration for owners moving into new residences."

Topics: NBN, Broadband


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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  • Oh Noes!

    I'm just waiting for the first troll to hit the calculator and say "OMG #FAIL At this rate it will take 100,000 years to pay back the $36 billion"
  • I'm just waiting for the first pro-NBN FUDster to say that 7282 customers is something to sing about *rolleyes*
    • Well, I thought that you of all people, FrankieBaby, would be up for a song!

      (With the lovely Tony Abbott on piano. Isn't he wonderful? Don't forget to tip!)

      Warming up for a rendition of "My Way... Or The Highway"
      • OMG, it'll take 100,000 years at this rate, with only 7282 customers

        • ... and not to mention the $100B+ price tag...!
    • BTW FrankieBaby/FredShekel, get your own word, I have FUDster patented, thank you.
      • Well maybe a trademark.
        • LOL, I stand corrected.
    • Hey Frankie, maybe NBNco should roll out in more coalition seats and they'll get more customers?
      Hubert Cumberdale
      • Here we go, another troll that wants to talk politics, stupid.... just as stupid as those who are looking at percentages.

        The point was that 7282 is not very many, is it?

        I think I hear violins..... oh yes, its a dirge.
        • yeah it's not about politics, or it shouldn’t be so perhaps you should direct your comment to the dummies in the coalition who seemingly cant wait to get the NBN now, they are apparently so eager for it that I’m sure that number (7282) would be much higher if NBNco specifically targeted just coalition seats... much more than if they just rolled out as is to everyone who don’t need it because it's a "white elephant". durrrrrrr derp derp durr.

          "The point was that 7282 is not very many, is it?"

          So tell us how many customers should the NBN have then. See that's the problem with you Turnbull apologists, you don’t state anything specific before the fact like "On the 11th of April 2012 NBNco should have X amount of customers" the relentless cry baby whinging always comes when some irrelevant number has been announced. Like 7283 would have somehow been more acceptable to you. Fact is this build is 9 years long and 1 comes before 2 as 7282 comes before 12 million. I'm sure you should know this, it's all basic math you should have been taught in primary school.
          Hubert Cumberdale
          • Why don't you just go and look at how many NBN.co SAID would be connected by now, dumbo.

            As for basic math, how about you do some to work out what a hurry up they must get happening to complete the build.....

            Basic reasoning is something they were unable to teach you in primary school.
          • "Why don't you just go and look at how many NBN.co SAID would be connected by now"

            I'm not asking NBNco. I'm asking YOU. Here's your big chance to prove everyone here wrong. Give us some numbers and a date.

            As for basic reasoning, that is something we usually learn before primary school, clearly you didn’t. You seem to be stuck in this puerile stage.
            Hubert Cumberdale
          • In December 2010 NBN.co said it would have 316,000 premises actively connected to fibre by June 30 2012.

            Well, its not June yet, but, tell me that they can do it :-)

            Now don't give me any crap about the Telstra deal, there has been plenty they could do without it.
          • Once again you seem to have misunderstood the request. I am not asking for NBNco numbers. I am asking YOU to give a number on how many customers you believe will have active services on the NBN on a particular date. Say the 12th of October 2012.
            Hubert Cumberdale
          • I think he's still on the phone to MT's office Hubert, trying to find an answer (apart from baa)

          • Ok, try this on for size:

            30th March 2013. A while away for sure, but still a good weathervane date. It's 9 months after the previous quoted figure (so therefore, the same as the current delay according to the NBN Co). Also still before the federal election, meaning those not satisified can vote against (if they wish) and those impressed could vote for.

            So let's say there'll be some inevitable delays whilst they're still gearing up and say that the active connections need to be at 90% of this figure.

            So recap: 284,400 active connections by the 30th of March 2013.

            Would you be willing to agree to such a goal?
          • Are you "all" the one person?

            That certainly gives our nation hope!
          • No, but as there hadn't been an effective date put forward as a suggestion, i was just trying to reach one, rather than lambasting each other with thinly veiled insults.
          • Good for you and you did so without saying white elephant, wow...!

            Oh that was a thinly veiled insult wasn't it, never mind?