© NBN Co Limited 20121 Disclaimer This document sets out NBN Co’s proposals in respect of certain...

© NBN Co Limited 20121

Disclaimer This document sets out NBN Co’s proposals in respect of certain aspects of the National Broadband Network. The contents of this document represent NBN Co’s current position on the subject matter of this document. The contents of this document should not be relied upon by our stakeholders (or any other person) as representing NBN Co’s final position on the subject matter of this document, except where stated otherwise. NBN Co’s position on the subject matter of this document may also be impacted by legislative and regulatory developments in respect of the National Broadband Network. All prices shown in this document are exclusive of any GST. © NBN Co Limited 2011 (ACN 136 533 741)

Joe Dennis – Melbourne, 3 August 2012


"I think there is a world market for maybe five computers.”

- Thomas Watson, chairman of IBM, 1943


Presentation Overview

• What and who is the NBN?• 1

• Where is the NBN being rolled out?• 2

• How is the NBN being constructed?• 3

• Why do we need the NBN? • 4


NBN in a nutshell

Who we are• Government Business Enterprise (GBE) – like Australia Post • Staffed by professional telecommunications industry experts

What we are doing

• Connecting broadband to every single Australian premises

How we are doing it

• 90+% Fibre to the premises (FTTP)

• Fixed wireless and satellite


NBN is a wholesaler

NBN Co - Layer 2 Ethernet Access Network Wholesaler

Retail

Wh

olesale

Telstra Optus iiNet TPG

Wholesaler/Aggregator


90+% Fibre Coverage

Indicative mapBy 2020


90+% Fibre + Wireless

Indicative mapBy 2020


90+% Fibre + Wireless + Satellite


What and who is the NBN?1

Where is the NBN being rolled out?2

How is the NBN being constructed?3

Why do we need the NBN? 4


Victoria - indicative

*The information in these maps is based on initial detailed modelling work done by NBN Co which may change following more detailed planning and design work


3 year rollout

11

Work to commence by June 2015

Work to commence in 2012

Work has commenced


3 year rollout – why we have gone where

• Existence of transit network in loop

• Availability of ‘Points of interconnect,’ telephone exchanges, dark fibre links, construction of fibre nodes

• Prioritising the links to support our fixed wireless and satellite networks

• Balance between the states, and complete Tasmania by 2015

• Balance between regional and metropolitan Australia

• Completing the sites that we had already announced

• Prioritising growth corridors and new development (Greenfields) sites

• Sequencing the build to minimise costs and operate efficiently

• Ensuring the build is balanced for contractors and adjusted if likely to cause congestion in local communities







Construction Overview – Fibre Network: Replicating Modules


Construction Overview – Physical Infrastructure Representation


Outline of Average Design & Construction

Month 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16

Planning & Design

NBN NBN NBN

Detailed Design C C C

Telstra Remediation

T T T T

Construction C C C C C C C

Testing NBN NBN

Activation NBN NBN

On average 12-18 months construction process per Fibre Serving Area Module (FSAM)


NBN Co Planning & Design Process

Define a Fibre Serving Area (FSA)

•Maintain 93% fibre coverage across Australia.

•Each FSA serves approximately 33,000 to 38,000 premises.

Define Fibre Serving Area Modules (FSAMs).

•Each FSAM serves approximately 3,200 premises.

•The construction timing of each FSAM will be staggered within its FSA

•An FSA can have up to 12 FSAM

Planning and Design Input and Collaboration

•Plan the network to minimise cost, installation time, disruption, environmental effects, and damage or remediation requirements.

•Request for Information to infrastructure owners (LGA, Power Utility, etc)

Network Design Document (NDD)

•A Network Design Document (NDD) is issued representing the preliminary planning and design for one FSAM.

FSAM

FAN

FDA FDA FDA FDA

FDA FDA FDA FDA

FDA FDA FDA FDA

FDA FDA FDA FDA

FAN

Detailed Design Document (DDD)

•Forecast•Program and Scheduling•Request for Information

FSA


LGA Preparedness

Infrastructure:• Local environment plans • Heritage sites• Waterways, unstable land, contaminated land, cultural sites• Future zoning/sub-divisions• Capital works programs• Location of existing or proposed council-owned communication infrastructure, such as ducts and pits• Ratepayers database• Cadastral maps• Land use – schools, military sites, industrial parks

Digital:• Community engagement• Funding programs – e.g digital hubs• Local/regional digital strategies


Home connection equipment


Mobile Wireless vs Fixed Wireless

Prescribed contention ratio = higher bandwidth


Fixed Wireless

Mo

dCustomerActiveEquipment

Premises

LTEModem(Mod)

Pitt

Backhaul Network

Ducted Fibre

Gateway

DW

DM

WirelessBase

Station

SA

EG

W

Key Characteristics• LTE technology will be used as part of the fixed wireless rollout. LTE is often referred to as “4G”.•Unlike 3G, LTE is designed purely for data (e.g. voice is handled as data).


Satellite – How it works


Long Term Satellite Service

Long Term Satellite Service− Redundant high capacity Ka Band satellites− 12/1Mbps services with VoIP Support− Typical antenna size 0.8m− Target 60GB Plans = 350kbps capacity allocation

− Multiple POIs− Access to all NBN Products

Interim Satellite Service− 6/1Mbps services with VoIP Support− NBN responsible for NTU− Targeting 6GB Plans (Peak hours) =

30kbps capacity allocation

ABG Service− Non-redundant and limited Ku band capacity− Threshold service 1M/256kbps− Typical antenna size range 0.84-1.2m− Service provider responsible for NTU− Typical 2-3GB Plans (peak hour) = 10kbps

capacity allocation− Single POI

0 10 20 30 40 50 60 700

2

4

6

8

10

12

14

Long Term

Interim

ABG

Indicative Performance Im-provements

Target Peak Hour Plan (GB)

Pea

k S

pee

d (M

bp

s)

23


Satellite engineering

INTERIM SATELLITE LONG TERM SATELLITE

•1National & 10 spot beams•Spot beams of 1 degree look angle

•101 beams per satellite•Small spot beams of 0.3 degree look angle (less than 300km diameter)

24







Changing face of communications


Changing face of communications


Broadband usage demand increasing

Source: IBISWorld, June 2012


IBIS/IBM Report

- For every 10% increase in broadband penetration, GDP increases by 1% and doubling an economy’s broadband speed increases GDP by 0.3%.

- Between $2 billion and $4 billion in benefits per year from wide-scale implementation of telehealth systems;

- Up to $2.4 billion in savings for households if internet access increases by 10%.

- 2012 – ICT expected to deliver revenue of $131 billion in Australia through faster broadband

- 2050 - will generate around $1 trillion in revenue.

- Australian consumers will need a monthly data allowance of almost 200GB by 2020 and potentially five terabytes (TB) by 2030

Source: IBIS World: A Snapshot of Australia’s Digital Future


SME Facts

• If 10% Australians teleworked 50% of time, total annual gains of up to $1.9 billion per year

• Online retail – 2009 = $16.9b (50% foreign)

– 2015 = $33.3b

• 47% of consumers expect web pages to load <2 secs – 40% would abandon the page if >3 secs

• YouTube video searches have surpassed Yahoo, 2nd to Google (Oct 2011 = 1b/day, 2012 = 4b+/day)

Source: http://www.nbnco.com.au/assets/documents/nbnco-smb-factsheet.pdf

http://www.nbnco.com.au/assets/documents/nbnco-smb-factsheet.pdf


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