NBN Co meets reduced target for network rollout

ACCC seeks comment again on proposed changes to Special Access Undertaking

NBN Co CEO Mike Quigley

NBN Co CEO Mike Quigley

NBN Co has passed 207,500 premises with fibre as of 30 June, meeting the company’s revised end-of-financial-year target.

However, the figure falls well below the NBN Co’s original goal of 341,000 premises by June this year.

In February, NBN Co CEO Mike Quigley downgraded the forecast to 286,000 because of construction delays from Syntheo. In March, NBN Co slashed the June target again to between 190,000 and 220,000.

At the end of FY2013, the total number of families and businesses with NBN services was 70,100; four times as many as there were at the end of FY 2012, NBN Co said.

Of those, 33,600 had NBN fibre services, seven times more than at the end of FY 2012, it said.

NBN Co CEO Mike Quigley said the figures renew NBN Co’s “confidence” that it will reach all Australians in the next eight years.

“Premises such as blocks of apartments and large office blocks have always provided challenges to companies rolling out telecommunications networks,” he said.

“The key difference between the NBN and other networks – such as hybrid fibre coaxial (or cable TV) – is that we will provide NBN services to every home and business that orders a service.”

“We’re currently working with our delivery partners to do just that. Steps include the work orders we have placed with Downer EDI Engineering Pty Ltd, Daly International Pty Ltd, ISG Management Pty Ltd and Universal Communications Group Limited to connect multi-dwelling units ... to the NBN.”

The figures failed to impress shadow communications minister Malcolm Turnbull, who issued a statement questioning how NBN Co counted. He said that a third of existing premises passed can't actually connect to the network.

"In South Perth, more than nine in 10 premises ‘passed’ cannot connect to the network," Turnbull said. "The NBN must now undergo a rigorous audit so that the public knows exactly where the project is up to, and how much it will cost in time and dollars to complete the project under Labor."

Also today, the Australian Competition and Consumer Commission (ACCC) sought comment on a draft variation notice outlining proposed changes to the Special Access Undertaking offered by NBN Co.

The SAU will govern NBN Co's wholesale pricing and operations as the sole wholesaler for the National Broadband Network (NBN) for the next 30 years.

The ACCC draft variation notice follows up on proposals made by the agency in April to increase its role in NBN oversight and remove a number of non-price terms from the scope of the undertaking. The ACCC’s revisions reflect comments collected from the NBN Co, industry and other stakeholders.

“Specific matters which have been considered in further detail include: processes for setting revenue constraints, NBN Co’s rate of return, the scope of ‘fixed principles’ within the SAU, mechanisms relating to product introduction and withdrawal, and how tax changes should be treated,” said ACCC chairman Rod Sims.

The ACCC said it will collect comments on its latest paper until 26 July and then issue a formal variation notice “as soon as practicable.” At that point, NBN Co may make changes to its original SAU if it chooses.

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Tags Australian Competition and Consumer Commission (ACCC)fibrenbn cospecial access undertaking (SAU)NBNMike Quigley

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3 Comments

Marketing Dept

1

While all the propeller heads I know tout the technical superiority of the NBN over mobile networks the final say will be from the consumers themselves – it’s not a technical argument – it’s a marketing one. Fixed line internet has been dying a painful death as punters migrate to mobile internet – and as they say – it’s not all about size (or speed), it’s what you do with it (as yo mama can testify). People in the coming years will not want this product, it’s not flexible enough. No, stop there - Your argument is irrelevant, go back to the IT support desk and just be quiet…

Cavendish

2

@1 First off the whole premise of your missive wrong, as your confusing the data about Wi-Fi and mobile broadband, so don't worry no one will see you having a propeller, well least not on the top of your head anyways.

But don't feel sad Tony Abbot also doesn't know the difference between Wi-Fi and mobile broadband.

The amount of data moved via a fixed line/cable either directly to a pc or via a Wi-Fi broadcast from a modem has risen sharply and is expected to continue to do so, and so has mobile broadband us, which also relies on lots of towers with lots of fibre to provide a service.

You are getting confused, but so are allot of people, but its lucky for them they don't make rants in forums exposing their pitiful research skills.

Marketing Dept

3

No confusion - I use the mobile network for my internet in my office (not wifi, but telstra 4G) and on my smartphone. My phone creates a wifi hotspot if I need it on a separate device (laptop, tablet). The mobile towers are already there and privately funded - and will later upgrade to 5G. An increasing number of people are choosing to go without any form of fixed internet or phone (no phone line or cable) as they avoid duplicating services and also line rental. So unless you want to watch hours of hi-def video of me propelloring yo mama from multiple angles then the NBN is a waste of time for many people. The NBN is the wrong answer to the question of what people will want to do with their internet in the future - they will want portable and flexible and all on one account. The NBN company is already having to resort to threatening people in order to get anyone to sign up – its like selling ice to eskimos. Now go back to the support desk like I told you...

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