Nbn Co Corporate Plan

8/13/2019 Nbn Co Corporate Plan

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NBN Co. Ltd.

Corporate Plan

201215

6 August 2012

Corporate Plan 2012-15 1 6 August 2012


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2060

Australia

$ate

This Corporate Plan is dated 6 August

2012.



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NBN Co. Ltd.

TABL CNTNT&

1 E%EC&'I(ES&MMA)*+++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++,

1.1 NT789CTN T T' 2012-15 C7P7ATPLAN......................................................................................... :

1.2 &9//A7;B

1.? 2012-15 C7P7AT PLAN '+'L+'T&....................................................................................................... @

1. /=N+ 7/ T' 2011-1? C7P7AT PLAN T 2012-15 C7P7AT PLAN...............................................10

1.5 &9//A7; ; C7P7AT PLANA&&9/PTN&.......................................................................................1

2 -)./EC' S'A'&S

&-$A'E++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++1,

2.1 TL&T7A AN8 PT9& A+7/NT&.............................................................................................................1:

2.2 C9&T/7&............................................................................................................................................ 1:

2.? NT(7 8PL;/NT........................................................................................................................... 1>

2. T&;&T/&............................................................................................................................................. 21

2.5 8&+N T' ACT= AN8 PA&&= NT(7&........................................................................................... 22

2.6 ACLT&............................................................................................................................................... 2?

2.: 7+9LAT7; AN8 PLC; 8C&N& 9P8AT............................................................................................... 2

2.> LCAL CNTNT...................................................................................................................................... 2

C.M-AN*&-$A'E++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++2

?.1 /ANA+/NT 7&T79CT97 N A9+9&T 2011............................................................................................ 25

?.2 PPL AN8 PLC&............................................................................................................................... 2:

?.? 'ALT'% &AT; AN8 N=7N/NT "'................................................................................................. 2:

?. C9& N C//9NT;7LATN&.............................................................................................................2:

?.5 B9&N&& CNTN9T;.............................................................................................................................. 2>

?.6 9ALT; CNT7L AN8 CNTN99& /P7=/NT....................................................................................2>

?.: '9/AN 7&97C% N89&T7AL 7LATN& AN8 &AT;................................................................................2>

ACCESS A))ANGEMEN'S3 )EG&LA'.)* AN$ -.LIC* $ECISI.NS

+++++++++++++++++++++++++++++++++++++++++++++++++++++++++1

.1 ('L&AL B7A8BAN8 A+7/NT "(BA#............................................................................................. ?1

.2 &PCAL ACC&& 9N87TAN+ "&A9#.........................................................................................................?1

.? PLC; 8C&N&


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.................................................................................................................................... ?2

$E-L.*MEN' F.)ECAS'S+++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++

5.1 =7=(.............................................................................................................................................. ?5

5.2 T7AN&T NT(7.................................................................................................................................. ?:

5.? B7 CN&T79CTN P7+7A//

............................................................................................................ ?:5. D8 (7L&& AN8 &ATLLT..................................................................................................................?>

6 NE'4.)5 ).LL.&' AN$ C.S'S+++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++1

6.1 NT(7 7LL9T E N( 8=LP/NT&................................................................................................ 1

6.2 NT(7 7LL9T E C&T 7CA&T........................................................................................................

6.? T &;&T/& AN8 NT(7 7LA&&.......................................................................................................... 6

6. /PL/NTATN PT9& 'C A+7/NT............................................................................................. :

6.5 /PL/NTATN PLC; 8C&N&...................................................................................................... :

, MA)5E' EN(I).NMEN' AN$ -).$&C'S+++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++

:.1 /A7T N=7N/NT 9P8AT

................................................................................................................@

Corporate Plan 2012-15 ? 6 August 2012


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NBN Co. Ltd.

:.2 P789CT 8=LP/NT.......................................................................................................................... 55

:.? NBN-BA&8 7TALPLAN&........................................................................................................................ 5:

7 )E(EN&E F.)ECAS'S

++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++61>.1 &NAP&'T 7=N9 7CA&T&............................................................................................................ 61

>.2 7=N9 PLAN........................................................................................................................................ 61

FINANCIAL F.)ECAS'S++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++,1

@.1 &9//A7; NANCAL 7CA&T&...............................................................................................................:1

@.2 &CP 7 T' 2012-15 C7P7AT PLAN................................................................................................. :2

@.? 7CA&T ; NANCAL N8CAT7&......................................................................................................... :?

@. C/PA7&N T 2011-1? C7P7AT PLAN..............................................................................................:

@.5 8PL;/NT P7L.............................................................................................................................. :5

@.6 T;P 8PL;/NT 7 T' B7NT(7............................................................................................ :5

@.: CAPTAL DPN8T97.............................................................................................................................. :5

@.> P7ATN+DPN8T97.......................................................................................................................... ::

@.@ (7N+ CAPTAL................................................................................................................................... :>

@.10

TADATN...............................................................................................................................................:>

@.11 9N8N+ NBN C................................................................................................................................... :>

10 )IS5 MANAGEMEN'++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++7

10.1 7& /ANA+/NT &;&T/

...................................................................................................................... >?10.2 C7P7AT PLAN 7&&............................................................................................................................ >

11 GL.SSA)* .F 'E)MS++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++7


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Corporate Plan 2012-15 6 August 2012


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NBN Co. Ltd.

TABL D'BT&

D'BT 1-14 C/PA7&N 2011-1? C7P7AT PLAN =&. 2012-15 C7P7AT PLAN

7 T' B7 NT(7 CN&T79CTN P78 "F BLLN# "N/NAL

8LLA7....................................................... 10

D'BT 1-24 /PACT C'AN+& /=N+ 7/ 2011-1? T 2012-15 C7P7AT PLAN

7 T' B7 NT(7 CN&T79CTN P78 "F BLLN# "N/NAL

8LLA7....................................................... 11

D'BT 1-?4 C/PA7&N B7(NL8 P7/&& PA&&8 BT(N C7P7ATPLAN& .......................12

D'BT 1-4 C/PA7&N ; A&&9/PTN& N T' 2012-15 C7P7AT PLAN T T'2011-1?

C7P7AT PLAN........................................................................................................................................ 1

D'BT 1-54 P7T AN8 L&& "C9/9LAT=% F BLLN# "N/NAL 8LLA7............................................... 16

D'BT 1-64 9N8N+ &9//A7; "C9/9LAT=% F BLLN# "N/NAL 8LLA7.......................................... 16

D'BT 2-14 8A+7A/ T' T7AN&T AN8 B7 ACC&& NT(7&........................................................... 1>

D'BT 2-24 PLAT7/ AN8 CAPABLT&......................................................................................................... 22

D'BT ?-14 NBN C 7+AN&ATNAL &T79CT97 2012-15............................................................................25

D'BT ?-24 NBN C& 9NCTN& AN8 NT7AC&.........................................................................................26

D'BT 5-14 P7/&& PA&&8 7 C=78 "C9/9LAT= ;A7-N-;A7#.................................................... ?6

D'BT 5-24 P7/&& (T' ACT= &7=C "C9/9LAT= ;A7-N-;A7#................................................... ?6

D'BT 5-?4 8PL;/NT &C'89L 7 2012-15 C7P7AT PLAN............................................................. ?:

D'BT 5-4 ANN9AL 7LL9T C/PA7&N (T' T'7 C9NT7&.......................................................... ?>

D'BT :-14 &9//A7; 8ATA 9&A+BNC'/A7&..................................................................................... @

D'BT :-24 TL&T7A& D8 B7A8BAN8 T7AC +7(T'..........................................................................50

D'BT :-?4 9&8 NT7NATNAL BAN8(8T' +7(T' B; 7+N% 200:-2011......................................... 51

D'BT :-4 8(N&T7A/ 8/AN8 A&&9/PTN& 7 7&8NTAL C9&T/7&..................................... 5?

D'BT :-54 9P&T7A/ 8/AN8 &CNA7 A&&9/PTN&.............................................................................5

D'BT :-64 8(NLN BAN8(8T' 797/NT& =&. =L9TN TC'NL+;BAN8(8T'..........5

D'BT :-:4 9PLN BAN8(8T' 797/NT& =&. =L9TN TC'NL+;BAN8(8T' ................55

D'BT :->4 C/PA7AT= B9N8L8 P7CN+ NBN 7TAL 12G1 /BP& E A8&L2H........................................... 5>

D'BT :-@4 C/PA7AT= B9N8L8 P7CN+ NBN 7TAL 25G5 /BP& E A8&L2H........................................... 5@

D'BT :-104 C/PA7AT= B9N8L8 P7CN+ NBN 7TAL 100G0 /BP& E A8&L2H..................................... 5@

D'BT :-114 C/PA7AT= ('L&AL P7CN+ NBN =&. TL&T7A...............................................................60

D'BT >-14 7=N9 PLAN E 7CA&T&9//A7;.......................................................................................... 61


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D'BT >-24 7CA&T 7=N9 C/P&TN "F /LLN# "N/NAL8LLA7......................................... 62

D'BT >-?4 C/PA7&N B7(NL8& P7/&& CNNCT8 "C9/9LAT=# "I000.........................6?

D'BT >-4 =7ALL B7 &9B&C7B7 &PLT B; A=C &P8 T7&.................................................................6

D'BT >-54 ACC&& =7T9AL C7C9T "A=C# P7CN+........................................................................................65

D'BT >-64 P7CN+ 7 &;//T7CAL CAPACT; B; T7AC CLA&& AN8 A=ALABLT;

B; PLAT7/ TC'NL+; 7 ACC&& =7T9AL C7C9T& "A=C#.................................................................................. 66

D'BT >-:4 NT(7 T NT(7 NT7AC "NN# P7CN+.......................................................................66

D'BT >->4 7CA&T A=C P7CN+ 8CLN P7L "N/NAL 8LLA7................................................... 6:

D'BT >-@4 7CA&T C=C P7CN+ 8CLN P7L "N/NAL 8LLA7................................................... 6:

D'BT >-104 7CA&T D8 (7L&& AN8 &ATLLT 7=N9& "F /LLN# "N/NAL8LLA7 .........6>

D'BT >-114 A7P9 "F G /T'#.............................................................................................................................. 6@

D'BT @-14 &LCT8 7CA&T& AN8 P7


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NBN Co. Ltd.

D'BT @-54 ; 87NC& BT(N 2012-15 C7P7AT PLAN AN8 2011-1?C7P7AT PLAN...........:

D'BT @-64 7CA&T P7/&& PA&&8 AN8 CNNCT8 B; ;2021........................................................... :5

D'BT @-:4 7CA&T CAPTAL DPN8T97 "F /LLN# "N/NAL 8LLA7............................................ :5

D'BT @->4 7CA&T P7ATN+ DPN8T97 "F /LLN# "N/NAL 8LLA7...................................... ::

D'BT @-@4 NBN C& 7CA&T 9NL=78 9N8N+ 797/NT "F BLLN#"N/NAL 8LLA7 ....:@

D'BT @-104 NBN C& 7CA&T 9N8N+ P7L "8BT AN8 9T;# T ;202> "FBLLN# .................>0

D'BT @-114 NBN C& 7CA&T 9T; 9N8N+ 797/NT "F /LLN# "N/NAL8LLA7J ......>1

D'BT 10-14 NT7P7& 7& /ANA+/NT &;&T/

.................................................................................... >?


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1 E%EC&'I(ES&MMA)*

1+1 Introduction to the 201281 Cor"orate-lan

This Corporate Plan "201281 Cor"orate -lan or the -lan# sets out the e obKecti,es and

priorities $or NBN Co Li!ited "NBN Co# $or the ? ears $ro! 1


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published a $inal deter!ination granting authorisation o$ the ptus 'C Agree!ent. All

conditions precedent to the

ptus 'C Agree!ent ha,e no* been satis$ied and the agree!ent is *holl

unconditional.

Corporate Plan 2012-15 : 6 August 2012


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NBN Co. Ltd.

1+2 Su!!ar# .


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Corporate Plan 2012-15 > 6 August 2012


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NBN Co. Ltd.

1+ 201281 Cor"orate -lan;ighlights

The 2012-15 Corporate Plan incorporates the i!pact o$ changes and de,elop!ents in the

deli,er o$ the National Broadband Net*or since the 2011-1? Corporate Plan. The

Plan also re$lects the eperience that NBN Co has gained in the $ield o,er the past 20!onths% as *ell as the outco!e o$ co!!ercial agree!ents that no* underpin !an o$

the !aKor cost assu!ptions in the 2012-15

Corporate

Plan.

8espite a nu!ber o$ a!end!ents to the proKect assu!ptions% settings and goals%

including a @ !onth dela in the co!!ence!ent o$ the Telstra 8e$initi,e Agree!ents and

the inclusion o$ the conse)uences o$ the ptus 'C Agree!ent in the scope o$ the

$orecasts% NBN Cos underling business case re!ains $unda!entall unchanged $ro! that

outlined in the 2011-1? Corporate Plan.

(holesale broadband prices are proKected to $all o,er ti!e in both real and no!inalter!s

The nternal 7ate o$ 7eturn "I))# re!ains abo,e : per annu! Total $orecast Capital penditure to end o$ the ibre Construction period increased b?.@

Construction Co!!enced or Co!pleted $or approi!atel :5>%000 ibrepre!ises b

8ece!ber 2012 and

ibre Construction period etended b 6 !onths despite @ !onth dela inCo!!ence!ent

8ate.

The $orecasts in the 2012-15 Corporate Plan are in$or!ed b contracts eecuted $or theibre% ied

(ireless% &atellite and Transit net*or rollouts% including construction and e)uip!entcontracts.

The 2012-15 Corporate Plan $orecasts a net increase in Capital penditure andperating

penditure during the ibre net*or Construction period to ;2021%due to4 The inclusion o$ the ptus 'C Agree!ent in the scope o$ the $orecasts is proKected to

deli,er additional nd-9sers and 7e,enues to NBN Co

The introduction o$ anticipated technolog upgrades $or both ied (ireless and LongTer!

&atellite &er,ice "L'SS# nd-9sers in rural and re!ote Australia

The i!ple!entation o$ the +o,ern!ents Ne* 8e,elop!ents polic% the i!plications o$*hich *ere onl partiall understood at the ti!e o$ the 2011-1? Corporate Plan and The !o,e b NBN Co to use a !ore e$$icient IBuild 8rop !ethod $or custo!er

connections$

These changes ha,e long ter! bene$its $or the i!ple!entation o$ the +o,ern!ents

broad obKecti,es $or the National Broadband Net*or as *ell as $or NBN Cos business


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case. The higher le,el o$ connections and re,enues beond ;2021 results in higher

proKected cash $lo*s% *hich increase the $orecast return "77# $ro! : to :.1 o,er the

?0 ear period used $or the NBN Co

$inancial !odel "$ro! 1


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NBN Co. Ltd.

The $inancial highlights $ro! the 2012-15 Corporate Plan are su!!arised in hibit 1-1.

!%hi&it 1'1 Comparison o *+11'1, Corporate -lan vs$ *+1*'1. Corporate -lan or the #i&re/etwor0

Construction -eriod ( illion) (/ominal 2ollars)

Ma=or Assu!"tionsandForecast Financial

Metrics

201181Cor"orate

-lan

201281Cor"orate

-lan

Change

Forecast )eturn>0 #ear &nle:ered

I))?

:.0 :.1 H0.1

Ca"italE@"enditure>to End

Construction?

F?5.@billion

"to

8ec20#

F?:.billion

"to

to

F*2021?

F2?.: billion F2?.1 billion F"0.6# billion

."eratingE@"enditure>to F*2021?

F2?.2 billion F26. billion HF?.2 billion

&ource4 NBN CoNote4 774 nternal 7ate o$ 7eturn. All nu!bers rounded to 1 deci!al point.

1+ Mo:ing 9ro! the 201181 Cor"orate -lan to 201281 Cor"orate -lan

The 2012-15 Corporate Plan incorporates the $ollo*ing !aKor changes *hen co!pared tothe 2011-

1? Corporate Plan4

A. Changes in the scope o$ the o,erall proKect resulting $ro!4

o The inclusion o$ the ptus 'C Agree!ent in the Corporate Plan $orecasts

and

o The latest assess!ent o$ the i!pact o$ i!ple!enting a nu!ber o$

polic re)uire!ents% including the $ull i!pact o$ the Ne* 8e,elop!ents polic

announced in 8ece!ber 2010 and re,ised in


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?change bands are based on the nu!ber o$ ser,ices in operation per s)uare ilo!etre and are used b the

ACCC in the price deter!inations $or declared $ied access ser,ices such as 9nbundled Local Loop "&LL#.h ttp 4GG*** .a ccc .g o , .a u Gco n ten tGind e .p h t! lGite!dG>5?51:.

http://www.accc.gov.au/content/index.phtml/http://www.accc.gov.au/content/index.phtml/http://www.accc.gov.au/content/index.phtml/http://www.accc.gov.au/content/index.phtml/http://www.accc.gov.au/content/index.phtml/http://www.accc.gov.au/content/index.phtml/http://www.accc.gov.au/content/index.phtml/


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NBN Co. Ltd.

o Accelerated Capital penditure during the Construction period to

;2021 as a result o$ adopting a IBuild 8rop strateg $or connecting

pre!ises to the ibre net*or.

The o,erall i!pact o$ the abo,e changes is su!!arised in hibit 1-24

!%hi&it 1'* 3mpact o Changes 4oving rom *+11'1, to *+1*'1. Corporate -lan or the #i&re/etwor0 Construction -eriod ( illion) (/ominal 2ollars)

'#"e o9 Changes ForecastCa"ital

E@"enditure>to End

Construction?

Forecast."eratingE@"enditur

e>to

F*2021?

Forecast)e:enues >toF*2021?

A+ Changes inSco"e o9 the.:erall -ro=ect

H F1.: billion H F2.2 billion H F2.0 billion

B+ .ther Changes F"0.?# billion H F1.1 billion F"2.6# billion

'otal Changes H F1. billion H F?.2 billion F"0.6# billion

&ource4 NBNCo

Note4 All nu!bers rounded to 1 deci!al

point.

1++1 Changes inSco"e

Changes in the scope o$ the o,erall proKect re)uired to be deli,ered b NBN Co ha,e

resulted in an increase in Capital penditure during the Construction period% an increase in

perating penditure to ;2021% but ha,e also increased 7e,enues o,er the period to

;2021 and beond. The principal changes in scope include4

1. ."tus ;FC Agree!ent E The !o,e!ent o$ additional subscribers to the National

Broadband Net*or under the ptus 'C Agree!ent results in !igration

pa!ents to ptus and in increased connection costs during the ibre net*orConstruction period. These up$ront increases in Capital penditure and perating

penditure are !ore than o$$set b additional 7e,enues proKected in later ears.

2. I!"act o9 -olic# $ecisions E &ince the 2011-1? Corporate Plan there ha,e been a

nu!ber o$ polic decisions that are no* re$lected in the 2012-15 Corporate Plan.

These policies are discussed in detail in &ection .?% -olicy 2ecisions% and include -oints o9 Interconnect >-oIs? E t has no* beco!e clear that the operational and$inancial conse)uences o$ i!ple!enting the ACCC re)uire!ents $or a se!i-

distributed !odel o$ 121 initial Pos "in application o$ the ACCC Ico!petition criteria

$or Po locations# *ere underesti!ated in the 2011-1? Corporate Plan.

New $e:elo"!ents E The cost o$ eecuting the +o,ern!ents polic $orconnecting Ne*

8e,elop!ents "+reen$ields sites# has resulted in higher up$ront $inancial costs than

$orecast in the 2011-1? Corporate Plan "see &ection 6.1.2% /ew 2evelopments

5tatus#.


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NBN Co. Ltd.

Batter# Bacu" E The 2011-1? Corporate Plan assu!ed that NBN Co *ould bere)uired to pro,ide Batter Bacup to 100 o$ ibre nd-9sers connections.

ollo*ing consultation *ith the &hareholder /inisters% the 2012-15 Corporate Plan

assu!es that nd-9sers *ill be able to no!inate *hether or not the *ant NBN

Co to pro,ide Batter Bacup. Priorit Assistance households *ill be pro,ided *ith

a Batter Bacup. t is no* assu!ed that 50 o$ ibre nd-9sers *ill elect not toha,e Batter Bacup% *ith a conse)uent reduction in Capital penditure. Fi@ed 4ireless and Long 'er! Satellite Antici"ated 'echnolog# &"grades E

The 2012-15

Corporate Plan includes additional Capital penditure associated *ith NBN Co

pro,isioning $or anticipated technolog upgrades on both the ied (ireless and

Long Ter! &atellite ser,ices $or rural and re!ote Australia. .ther -olic# Issues E The 2012-15 Corporate Plan re$lectsassu!ptions $or the i!ple!entation o$ other polic decisions being the ibre

net*or $ull co,erage o$ Band 1 and Band 2% Public n$or!ation on /igration

"-IM#% 9& Paphones% Public nterest Pre!ises "-I-s# and T9&/A Le,.

1++2 .therChanges

A$ter taing into account the changes in scope outlined in &ection 1..1% Changes in 5copethe 2012-

15 Corporate Plan re$lects a decrease in Capital penditure during the Construction

period% an increase in perating penditure to ;2021 and a reduction in 7e,enues to

;2021 co!pared *ith the 2011-1? Corporate Plan. (hilst there ha,e been changes in

!an o$ the underling assu!ptions% the net changes in Capital penditure% perating

penditure and 7e,enues can be attributed to three principal causes4

?. $ela#ed Co!!ence!ent o9 (olu!e )ollout E The 2011-1? Corporate Plan

assu!ed that the rollout *ould be co!pleted b 8ece!ber 2020 "@.5 ears $ro! %000

6%000

I!"acto9the

6 !onthdela#in Co!!ence!ent

$ate

%000

2%000

0

;2011 ;2012 ;201? ;201 ;2015 ;2016 ;201: ;201> ;201@ ;2020 ;2021

2012 -15 CP 2011 - 1? CP 2011 - 1? CP @ !onth dela

&ource4 NBN Co


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NBN Co. Ltd.

. Increased 'elstra In9rastructure E 9nder the Telstra 8e$initi,e Agree!ents NBN

Co obtains access to higher ,olu!es o$ Telstra in$rastructure than *as anticipated in the

2011-1? Corporate Plan% notabl $or 8ar ibre and echange space. This has

resulted in higher perating penditure in the period to ;2021 and beond% o$$set b

lo*er Capital penditure.

5. Accelerated Custo!er Connect costs E NBN Co is planning to use a predo!inantl

IBuild 8rop strateg% in contrast to the I8e!and 8rop approach detailed in the 2011-1?

Corporate Plan as $urther detailed in &ection 6.2.?% Customer Connect. The IBuild 8rop

strateg is epected to be !ore cost e$$ecti,e in the long run than per$or!ing I8e!and

8rops% particularl in the contet o$ the agree!ent *ith Telstra to disconnect its copper

net*or.

The i!pact o$ the IBuild 8rop approach has been to accelerate Capital penditure

into the period to ;2021% although o,erall it is epected to be bene$icial to NBN Co

due to increased e$$iciencies.

n !o,ing $ro! the 2011-1? Corporate Plan to the 2012-15 Corporate Plan NBN Co hasanalsed each o$ the other e areas o$ the business to deter!ine *hether the

original underling assu!ptions continue to be ,alid "and there$ore rein$orced# or

*hether% o,er the elapsed ti!e% there ha,e been !aterial changes that need to be

addressed and re!odelled in the 2012-15

Corporate Plan. ,erall% the net e$$ect o$ these positi,es and negati,es ha,e approi!atel

balanced out% !eaning that% ecept as noted in ite!s 1 to 5 abo,e "&ections 1..1%

Changes in 5cope O 1..2% "ther Changes#% the business case re!ains consistent *ith the

2011-1? Corporate Plan4 'ae8&" E The 2012-15 Corporate Plan assu!es tae-up le,els in the ibre net*orare broadl consistent *ith those in the 2011-1? Corporate Plan% taing account o$ there,ised deplo!ent ti!e$ra!e and the ptus 'C Agree!ent noted in ite!s 1 and ?

abo,e "&ections 1..1% Changes in 5cope O 1..2% "ther Changes#. )e:enues E /aret data since the publication o$ the 2011-1? Corporate Plan pro,idessupport $or the original assu!ptions on speed and data usage% as *ell as NBN Cos

obKecti,e to reduce prices o,er ti!e% both in real ter!s and in no!inal ter!s. A,erage

7e,enue per 9ser "A)- assu!ptions are consistent *ith those in the 2011-1?

Corporate Plan. Ca"ital E@"enditure E ncreases in so!e Capital penditure ite!s% other thanthose noted abo,e in ite!s 1-5 "&ections 1..1% Changes in 5cope O 1..2% "therChanges#% ha,e been o$$set b sa,ings in other areas. (hilst this is not an ehausti,e

list% the !ain ,ariations in capital costs re$lected in the 2012-15 Corporate Plan include4

o Networ $istances E NBN Co has increased assu!ptions $or net*or distances

based on the latest a,ailable planning in$or!ation% *hich is considered !ore

accurate than pre,ious eternal data on *hich NBN Co had to rel at the ti!e o$ the

2011-1? Corporate Plan.

o Eui"!ent Costs E )uip!ent costs are lo*er than originall esti!ated

due to architectural opti!isation and ,olu!e G price arrange!ents *hich NBN Co

has negotiated since the 2011-1? Corporate Plan.

o Construction La


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Corporate Plan 2012-15 1? 6 August 2012


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NBN Co. Ltd.

o Multi"le $welling &nits >M$&s? E NBN Cos eperience in initial deplo!ent

sites has highlighted the challenges $or connecting pre!ises in /89s and

additional costs ha,e there$ore been e!bedded in the 2012-15 Corporate Plan.

o I' S#ste!s E Additional costs ha,e been incorporated into the 2012-15 Corporate

Plan $or

T sste!s costs and additional costs $or Acti,e Net*or 7eleases "AN)s#.

o Fi@ed 4ireless and Satellite E The costs o$ deploing the NBN in the ied

(ireless and &atellite $ootprint are lo*er than anticipated in the 2011-1?

Corporate Plan as a result o$ $urther net*or planning and design. ."erating E@"enditure E The 2012-15 Corporate Plan includes cost sa,ings in anu!ber o$ areas and increased costs in other areas. ther than noted abo,e in ite!s 1-5

"&ections 1..1% Changes in 5cope O 1..2% "ther Changes# the net e$$ect o$ these

changes has had a li!ited $inancial e$$ect on a cu!ulati,e basis. &igni$icant changes in

perating penditure assu!ptions include4

o Additional resources in the areas o$ Construction contract !anage!ent

Co!!unit engage!ent G nd-9ser interaction processes T /anage!ent

"particularl% align!ent o$ databases and sste!s bet*een% $or ea!ple% Telstra%

construction deli,er partners and NBN Co# Telstra interactions and general

o,erhead "in relation to /edia% reedo! o$ n$or!ation "FoI# acti,ities% responses

to Parlia!entar Co!!ittees#.

o &a,ings in perating penditure relating to nd-9ser !igrations% as a result o$ the

Telstra

8e$initi,e Agree!ents and the ptus 'C Agree!ents.

o 7educed perating penditure in the ied (ireless and &atellite net*ors as aresult o$ $urther net*or planning and design.

1+ Su!!ar# o9 5e# Cor"orate -lan Assu!"tions

The e assu!ptions e!bedded in the 2012-15 Corporate Plan are sho*n in hibit 1-

% *hich pro,ides a co!parison *ith the corresponding assu!ptions used in the 2011-1?

Corporate Plan.

!%hi&it 1' Comparison o ey Assumptions in the *+1*'1. Corporate -lan to the *+11'1,Corporate

-lan

5e# Assu!"tions 201181 Cor"orate -lan 201281 Cor"orate -lan

-eriod Co:ered


27/162



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NBN Co. Ltd.

5e# Assu!"tions 201181 Cor"orate -lan 201281 Cor"orate -lan

-olic# $ecisions S.E )euire!ent Preli!inar assess!ent o$ Pointso$

nterconnect "-oI# decisionPreli!inar assess!ent o$

+reen$ields obligationsBatter Bacup to 100 o$

connected

ibre nd-9sers

no*n i!pact to date o$ Podecision no*n i!pact to date o$

+reen$ields obligationsBatter Bacup I/ust pt *ith

an assu!ed 50 tae-upAnticipated technolog upgradeso$ ied (ireless O Long Ter!

&atellite net*ors

ibre net*or ullCo,erage o$ Band 1 O 2

Public n$or!ation on /igration"P/# 9& Paphones

Public nterest Pre!ises

"PPs#

T9&/A

Le,

-re!ises -assedCo:ered

nd o$ ibre Net*orConstruction

Period

8ece!ber 2020 .? !illion >.5 !illion

Nu!ber o$ ied (ireless and&atellite

Pre!ises Connected ";2021#

0.2 !illion 0.2 !illion

5e# Ca"ital E@"enditure $ri:ers

Co,ered 7oad 8istance 1?0%000 !s 1>%000 !s

+PN Phsical 8istance 1>1%000 !s 206%000 !s

Aerial " o$pre!ises#

- Local Net*or- 8istributionNet*or

- Transit Net*or

250

0

25

0

0

ternal Net*or Ter!ination

8e,ices"N'$s#

50 Nil

Net*or Architecture

ITpe 1 ITpe 2

Custo!er Connections /odel I8e!and 8rop IBuild 8rop

&ource4 NBN Co


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Note4 The 2012-15 Plan assu!es 100 nternal NT8s.

7e$er &ection 6.2.2% #i&re /etwor0 $or $urther details.



30/162


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NBN Co. Ltd.

2 -)./EC' S'A'&S&-$A'E

2+1 'elstra and ."tusAgree!ents

NBN Co and Telstra announced on 2?


32/162

5@ is an NBN Co calculation based on total !aret nu!ber o$ broadband subscribers and the nu!ber o$

subscribers *ho purchase broadband ser,ices $ro! 7&Ps that ha,e signed a (BA *ith NBN Co.

Corporate Plan 2012-15 1: 6 August 2012


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5 Customer 4 Lead-ins Local Netw ork 2 Distribution Netw ork 1 Transit Network

cti!e"#uipment$ %D&s

erial

NTD

PCD

%PT

%PT '

LT

D(

D% D

(D%

NBN Co. Ltd.

2+ Networ $e"lo#!ent

hibit 2-1 pro,ides an o,er,ie* o$ NBN Cos ibre access net*or and Transit co!ponents.

!%hi&it *'1 2iagram o the ;ransit and #i&re Access /etwor0s

)*Ps

N etworkTermination

Premises

Premise

C onnect ion

Lead-+nConduit

Ducted ,ibre

&nderroundDistribution Point

erial,ibre Network

Ducted,ibre

Pit Pit

.,D/0 ,ibreD

istribution/ub

Ducted,ibre

%anoles

.,N

0

,ibreccessNode

Ducted$2uried

,ibre

.Po+3N0

P ointo4 +nter

connect3 --re-ation Node

D e!ice.NTD De!ice.PCD

&nderroundLead-+nConduit

& nderroundLocal ,ibreN et work

%ultiport

5 4 2 1

Premise e#uipment Network

Lead-ins could be aerial or Local Networ k could be a erial or underroun6d7 (it te

Telstra Deal6

Dist ribution Net work to bemostl8

Transit N et work

Termination De!ice installed

underroundN N Co is e9pectin te ma:orit 8 to beunderround

underround

&ource4 NBNCo

2++1 'ransitNetwor

The Transit net*or is the bacbone o$ the National Broadband Net*or and pro,ides

connecti,it $or each o$ NBN Cos three Access net*ors "ibre% ied (ireless and

&atellite# to the Points o$ nterconnect "-oIs# *here 7etail &er,ice Pro,iders connect to

the NBN Co net*or. The Transit net*or includes planning $or three ele!ents4 8ar ibre

Lins% ibre Access Nodes and Aggregation Nodes "*here !ost Points o$ nterconnects *ill

be located#.

NBN Co *ill be using in$rastructure pro,ided b Telstra in the $or! o$ 8ar ibre and 7ac

&pace in echange buildings% 8ar ibre $ro! the 7egional Bachaul Blacspots

Progra!!e ")BB-# and so!e ne* $acilities to build the Transit net*or.

The Transit net*or *ill use di,erse trans!ission paths $or the 8ar ibre "deploed as

trans!ission rings# to carr high capacit 8ense (a,elength 8i,ision /ultipleing "$4$M#

optical signals $ro! the regional and re!ote locations to the Pos.

The Transit net*or proKect has been established in order to !anage the rollout o$ thenet*or *ith

Telstra and other parties o,er a period o$ 2 !onths co!!encing 1 August

2011.8esign docu!ents $or the $irst $i,e rings o$ 8ar ibre and all related Aggregation Nodes

and ibre Access Nodes "FANs# sites are co!plete. The related e)uip!ent has been

ordered and the $irst ring has been success$ull co!pleted in the Berle =ale area.

2++2 Fi


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NBN Co has no* begun the ,olu!e construction o$ the ibre net*or *ith a $ocus on

e$$icienc and cost e$$ecti,eness. NBN Cos inaugural I12 !onth ibre 7ollout Plan *as

published in ctober 2011.

Corporate Plan 2012-15 1> 6 August 2012


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NBN Co. Ltd.

n 2@ /arch 2012% NBN Co released its $irst I? ear ibre 7ollout Plan% *hich has anobKecti,e o$

Construction Co!!enced or Co!pleted $or approi!atel ?.5 !illion ibre pre!ises b?0


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agree!ents $or ongoing net*or aug!entation% !aintenance and $ield

ser,ices. The

Corporate Plan 2012-15 1@ 6 August 2012


37/162

NBN Co. Ltd.

agree!ents are $or an initial ear period and include an option $or rene*al o,er each

o$ the $ollo*ing 2 ears.

NBN Co is no* in the process o$ etending (or Pacage Contracts 1 to ? to include

IBuild 8rops "installing Pre!ises Connection 8e,ices at the ti!e o$ the Local net*or

construction#. NBN Co is also appointing contractors to per$or! on de!andacti,ations% net*or assurance and aug!entations. NBN Co *ill increase

construction capacit in !ore densel populated regions through the release and a*ard

o$ $urther construction *or pacages b the end o$ calendar 2012.

n &epte!ber 2011% the trial ser,ice phase in the irst 7elease &ites ca!e to an end and

co!!ercial ser,ices co!!enced% *ith the $irst billing run co!pleted on 22 ctober 2011.

As at ?0


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containing approi!atel 15%000pre!ises.

NBN Co de,eloped an nteri! &atellite ser,ice "also re$erred to as the irst 7elease&atellite &er,ice

"F)SS## to act as a transition bet*een the Australian Broadband +uarantee "ABG#

&che!e "*hich



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NBN Co. Ltd.

epired on 1


40/162



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NBN Co. Ltd.

NBN Co has adopted a deli,er !odel based around groups o$ related sste!s"-lat9or!s#. T

de,elop!ent and support tea!s are aligned to these Plat$or!s.

!%hi&it *'* -latorm and Capa&ilities

-lat9or! Ca"a


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NBN Co. Ltd.

&i!ilar to the process $or the design% testing and release o$ AN7s% NBN Co adopts a phased

approach $or the release o$ Passi,e Net*or 7eleases "-N)s#. These deli,er a range o$

product and operational capabilities. -assi:e Networ )elease 1 >-N)1?*as released $or net*or *ide deplo!ent in


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Corporate Plan 2012-15 2? 6 August 2012


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NBN Co. Ltd.

2+, )egulator# and -olic# $ecisions&"date

&ince the release o$ the 2011-1? Corporate Plan% the /ational road&and /etwor0Companies Act

*+11 and the ;elecommunications egislation Amendment (/ational road&and /etwor04easures

< Access Arrangements) Act *+11 ha,e been passed%establishing4 The go,ernance% o*nership and operating arrange!ents $or NBNCo and The regi!e to $acilitate open access to the *holesale-onl NBN $or do*nstrea!

ser,ice pro,iders.

This legislation builds on the re$or!s i!ple!ented b the ;elecommunications

egislation Amendment (Competition and Consumer 5aeguards) Act *+1+% including the

$ra!e*or $or Telstras ,oluntar structural separation ,ia the Telstra 8e$initi,e

Agree!ents. Progress has also been !ade since the release o$ the 2011-1? Corporate Plan

in relation to the $ollo*ing regulator !atters4 New $e:elo"!ents Clarit has been pro,ided in relation to NBN Cos rolein Ne* 8e,elop!ents.

6The ;elecommunications egislation Amendment (#i&re

2eployment) Act *+11 speci$ies NBN Cos role as the *holesale pro,ider o$ last

resort in Ne* 8e,elop!ents in accordance *ith polic state!ents released b the

+o,ern!ent "$or de,elop!ents o,er 100 lots o,er ? ears#. Pit O pipe and conduit lead-

in in$rastructure "Iibre-7ead acilities# are pro,ided b de,elopers to NBN Co.

-u


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6ibre in Ne* 8e,elop!ents4 Polic 9pdate 22


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NBN Co. Ltd.

C.M-AN*&-$A'E

+1 Manage!ent )estructure in August2011

NBN Co reorganised its !anage!ent structure in August 2011 to cater $or its transition $ro!

a start- up% $ocused on planning and net*or design% to an established business read $or

,olu!e rollout. The organisational changes included4 The creation o$ a ne* role o$ Chie$ perating $$icer *ith responsibilit $orconstruction% deplo!ent planning% T and net*or operations% health% sa$et and

en,iron!ent The integration o$ sales% pricing% industr relations and regulator $unctions in theepanded depart!ent o$ Product /anage!ent and ndustr 7elations The bringing together o$ suppl chain !anage!ent% procure!ent% co!!ercial strategand the !anage!ent o$ the Telstra 8e$initi,e Agree!ents and the ptus 'C

Agree!ent as part o$ the Corporate depart!ent An increased $ocus on )ualit planning% control and i!pro,e!ent *ith the appoint!ento$ a

'ead o$ ualitand The appoint!ent o$ a Chie$ Co!!unications $$icer to !anage +o,ern!ent%

!edia and staeholder relations as *ell as to o,ersee the public in$or!ation ca!paign

that *ill in$or! and educate the Australian public about the NBN rollout.

The restructure resulted in : $unctions reporting into the C. This includes ne*l-

created or ne*l-consolidated $unctions% as sho*n in the ne* organisational charts in hibit

?-14

!%hi&it ,'1 // Co "rganisational 5tructure

*+1*'1.

Chie9 E@ecuti:e.99icer

/i0e

uigle

Chie9 Financial

.99icer7obin Pane

Chie9 ."erating

.99icer7alph

&te$$ens

;ead o9 -roductManage!ent DIndustr# )elations


48/162


49/162

n

TechnologyVendorLiaison

ProductEngineering

Architecture&Technology

NationalTestFacility

InformationTechnology

ealth!

"afety&En#iron$

Net%orPlanning&Desig

NBN Co. Ltd.

&ince the 2011-1? Corporate Plan the $ollo*ing appoint!ents o$ senior !anage!ent

personnel ha,e occurred4 7alph &te$$ens as Chie$ perating$$icer

7obin Pane as Chie$ inancial$$icer /ie aiser as 'ead o$ ualitand ieren Coone as Chie$ Co!!unications$$icer. hibit ?-2 sho*s NBN Cos $unctions

and inter$aces. !%hi&it ,'* // Co>s #unctions

and 3nteraces

&ource4 NBN

Co


50/162



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NBN Co. Ltd.

+2 -eo"le and-olicies

NBN Co had 1%620 e!ploees as at ?0 01% '&A&1>001and &1001.

The har!onised (or 'ealth and &a$et la*s ca!e into $orce as $ro! 1


52/162

NBN Co *ill engage *ith bod corporate entities G o*ners o$ /ulti-8*elling 9nits"M$&s#% including co!!ercial /89s% to gain their appro,al to install net*or

in$rastructure

Corporate Plan 2012-15 2: 6 August 2012


53/162


54/162

classi$ications o$ e!ploees

in the technical% pro$essional% clerical G ad!inistration and contact centre areas. These

BAs are in

Corporate Plan 2012-15 2> 6 August 2012


55/162

NBN Co. Ltd.

place until 201 and pro,ide co!petiti,e ter!s and conditions $or NBN Co e!ploees

co,ered b the agree!ents.

NBN Co re)uires its contractors to be responsible e!ploers *ho pro,ide sa$e *or

en,iron!ents and e$$icient *or practices taing into account legal re)uire!ents% all

rele,ant !aret $actors and business operating conditions. NBN Co re)uires contractorsengaged in the construction o$ the NBN to de!onstrate their abilit to e$$ecti,el !anage

e!ploee relations !atters including co!pliance *ith the air (or Principles and National

Code o$ Practice $or the Construction ndustr and the associated 200@ ,ersion o$ the

i!ple!entation guidelines.

NBN Co is taing a e role in scoping the labour pool re)uired $or the construction o$ the

NBN and *ill generate a range o$ progra!!es that *ill build NBN Cos *or$orce in close

cooperation *ith construction contractors. NBN Co has identi$ied e )uali$ications re)uired

$or this *or$orce and is de,eloping a range o$ training progra!!es including an NBN Co

&a$et and A*areness course that is undertaen b NBN Co construction *orers.

The eternall contracted NBN Co construction *orers *ill be dispersed across the

countr pro,iding opportunities $or local e!plo!ent. NBN Co sees to encourage its

principal contracting partners to ha,e in place !anage!ent plans $or local industr

engage!ent and indigenous participation. NBN Co *ill *or *ith its partners to encourage

i!ple!entation and co!pliance *ith

these

plans.

Corporate Plan 2012-15 2@ 6 August 2012


56/162

NBN Co. Ltd.

'his "age is le9t intentionall#


57/162

NBN Co. Ltd.

ACCESS A))ANGEMEN'S3 )EG&LA'.)* AN$-.LIC* $ECISI.NS

+1 4holesale Broad4BA?

NBN Cos (holesale Broadband Agree!ent "4BA# *as published as a &tandard or!

o$ Access Agree!ent "SFAA# on ?0 No,e!ber 2011 *ith an initial ter! that *ill run $or

12 !onths% unless etended b agree!ent bet*een the Access &eeer and NBN Co.

n de,eloping the (BA% NBN Co undertoo intensi,e consultation to assist in the

$or!ulation o$ suppl ter!s that appropriatel balance the interests o$ NBN Co and the

interests o$ its Access &eeers. This pro,ides potential Access &eeers *ith a

!eaning$ul role in the $or!ulation o$ the (BA and enables NBN Co to co!pl *ith its non-

discri!ination obligations.

To date !ore than 0 Access &eeers ha,e entered into the (BA *ith NBN Co% and the

co!!ercial suppl o$ ibre ser,ices to Access &eeers has co!!enced. NBN Co iscontinuing to engage *ith the Australian teleco!!unications industr regarding the $urther

enhance!ent o$ the (BA% ,ia the Contract 8e,elop!ent Process set out in the (BA itsel$.

NBN Co has also published the (ireless Trial Agree!ent% the nteri! &atellite &er,ices

Agree!ent% the &atellite (holesale Broadband Agree!ent and Testing Ter!s and

Conditions as &tandard or! o$ Access Agree!ents.

+2 S"ecial Access &ndertaing>SA&?

NBN Co lodged a &pecial Access 9ndertaing "SA *ith the ACCC on 5 8ece!ber

2011% $ollo*ing *hich the ACCC co!!enced a public consultation process in relation to that

&A9.

NBN Co has been care$ull *oring through $eedbac recei,ed $ro! the ACCC and Access

&eeers in relation to the &A9 as lodged in 8ece!ber 2011% and continuing to engage

constructi,el *ith the!. NBN Co ,ie*s the process o$ achie,ing an accepted &A9 as a

dna!ic and consultati,e one% through *hich the undertaing can be $urther de,eloped and

re$ined bet*een original lodge!ent and $inal acceptance.

As a result o$ this ongoing engage!ent process% NBN Co has de,eloped a re,ised

approach to the &A9 *hich addresses issues raised b Access &eeers and the ACCC.

The high le,el design principles $or the proposed Incenti,e Based /odular &A9 *erepro,ided to the ACCC and subse)uentl published on 20


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supplied b NBN Co to ser,ice pro,iders and

utilities.

Corporate Plan 2012-15 ?1 6 August 2012


59/162

NBN Co. Ltd.

The &A9 re)uires NBN Co to co!pl *ith price and non-price co!!it!ents that are

!ade in the &A9. The &A9 *ill re)uire NBN Co to ensure that its &tandard or! o$

Access Agree!ent "including the (BA# re!ains aligned *ith the &A9.

The &A9 co!!it!ents ha,e been !ade as part o$ an o,erall pacage o$ !easures that

pro,ide NBN Co *ith the opportunit to reco,er its prudentl incurred costs o,er ti!e%

including a rate o$ return abo,e the long ter! +o,ern!ent bond ield.>

+ -olic#$ecisions

++1 201281 Cor"orate -lan -olic#Assu!"tions

The !ost recent de,elop!ents in polic decisions that ha,e been integrated into the2012-15

Corporate Planare4 FrustratedH M$&s E NBN Co is considering its engage!ent !odel *ith Bodies

Corporate to de$ine I$rustrated /89s in line *ith the &tate!ent o$ pectations "S.E#. Accounting Se"aration E As re)uired b the &% NBN Co is consulting *ith theACCC on the design and i!ple!entation o$ accounting sste!s to aid an $uture

accounting separation arrange!ents. Accounting separation co,ers assets and costs%

but not re,enues. Batter# Bacu" E The +o,ern!ent has consulted *idel *ith e staeholder groupson the etent to *hich NBN Co pro,ides Batter Bacup to di$$erent tpes o$ nd-

9sers "e.g. phone- onl nd-9sers% &pecial &er,ices and Priorit Assist nd-9sers#.

The 2012-15 Corporate Plan incorporates the +o,ern!ents polic approach that

nd-9sers *ill be able to no!inate *hether or not the *ant NBN Co to pro,ide

Batter Bacup. Priorit Assistance households *ill be pro,ided *ith a Batter Bacup. t

is no* assu!ed that 50 o$ ibre nd-9sers *ill elect not to ha,e Batter Bacup% *ith

a conse)uent reduction in Capital penditure. Co!"lete Co:erage within the Fior $urther in$or!ation on the NBN Co &A9% re$er the ACCC *ebsite4

h ttp 4GG*** .a ccc .g o , .a u Gco n ten tGind e .p h t! lGite!dG10201>5.
http://www.accc.gov.au/content/index.phtml/http://www.accc.gov.au/content/index.phtml/http://www.accc.gov.au/content/index.phtml/http://www.accc.gov.au/content/index.phtml/http://www.accc.gov.au/content/index.phtml/


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@Process docu!ent a,ailable on NBN Co *ebsite $or getting connected ,ia Net*or tension

progra!!e.http4GG***.nbnco.co!.auGgetti ng-connectedGnet*or-etension.ht!l.

http://www.nbnco.com.au/getting-connected/network-extension.htmlhttp://www.nbnco.com.au/getting-connected/network-extension.htmlhttp://www.nbnco.com.au/getting-connected/network-extension.htmlhttp://www.nbnco.com.au/getting-connected/network-extension.htmlhttp://www.nbnco.com.au/getting-connected/network-extension.htmlhttp://www.nbnco.com.au/getting-connected/network-extension.htmlhttp://www.nbnco.com.au/getting-connected/network-extension.htmlhttp://www.nbnco.com.au/getting-connected/network-extension.htmlhttp://www.nbnco.com.au/getting-connected/network-extension.htmlhttp://www.nbnco.com.au/getting-connected/network-extension.htmlhttp://www.nbnco.com.au/getting-connected/network-extension.htmlhttp://www.nbnco.com.au/getting-connected/network-extension.htmlhttp://www.nbnco.com.au/getting-connected/network-extension.htmlhttp://www.nbnco.com.au/getting-connected/network-extension.htmlhttp://www.nbnco.com.au/getting-connected/network-extension.htmlhttp://www.nbnco.com.au/getting-connected/network-extension.htmlhttp://www.nbnco.com.au/getting-connected/network-extension.htmlhttp://www.nbnco.com.au/getting-connected/network-extension.htmlhttp://www.nbnco.com.au/getting-connected/network-extension.htmlhttp://www.nbnco.com.au/getting-connected/network-extension.htmlhttp://www.nbnco.com.au/getting-connected/network-extension.htmlhttp://www.nbnco.com.au/getting-connected/network-extension.htmlhttp://www.nbnco.com.au/getting-connected/network-extension.htmlhttp://www.nbnco.com.au/getting-connected/network-extension.htmlhttp://www.nbnco.com.au/getting-connected/network-extension.htmlhttp://www.nbnco.com.au/getting-connected/network-extension.htmlhttp://www.nbnco.com.au/getting-connected/network-extension.htmlhttp://www.nbnco.com.au/getting-connected/network-extension.htmlhttp://www.nbnco.com.au/getting-connected/network-extension.htmlhttp://www.nbnco.com.au/getting-connected/network-extension.htmlhttp://www.nbnco.com.au/getting-connected/network-extension.htmlhttp://www.nbnco.com.au/getting-connected/network-extension.htmlhttp://www.nbnco.com.au/getting-connected/network-extension.htmlhttp://www.nbnco.com.au/getting-connected/network-extension.htmlhttp://www.nbnco.com.au/getting-connected/network-extension.htmlhttp://www.nbnco.com.au/getting-connected/network-extension.htmlhttp://www.nbnco.com.au/getting-connected/network-extension.htmlhttp://www.nbnco.com.au/getting-connected/network-extension.htmlhttp://www.nbnco.com.au/getting-connected/network-extension.htmlhttp://www.nbnco.com.au/getting-connected/network-extension.htmlhttp://www.nbnco.com.au/getting-connected/network-extension.htmlhttp://www.nbnco.com.au/getting-connected/network-extension.htmlhttp://www.nbnco.com.au/getting-connected/network-extension.htmlhttp://www.nbnco.com.au/getting-connected/network-extension.htmlhttp://www.nbnco.com.au/getting-connected/network-extension.htmlhttp://www.nbnco.com.au/getting-connected/network-extension.htmlhttp://www.nbnco.com.au/getting-connected/network-extension.htmlhttp://www.nbnco.com.au/getting-connected/network-extension.htmlhttp://www.nbnco.com.au/getting-connected/network-extension.htmlhttp://www.nbnco.com.au/getting-connected/network-extension.htmlhttp://www.nbnco.com.au/getting-connected/network-extension.htmlhttp://www.nbnco.com.au/getting-connected/network-extension.htmlhttp://www.nbnco.com.au/getting-connected/network-extension.htmlhttp://www.nbnco.com.au/getting-connected/network-extension.htmlhttp://www.nbnco.com.au/getting-connected/network-extension.htmlhttp://www.nbnco.com.au/getting-connected/network-extension.htmlhttp://www.nbnco.com.au/getting-connected/network-extension.htmlhttp://www.nbnco.com.au/getting-connected/network-extension.htmlhttp://www.nbnco.com.au/getting-connected/network-extension.html


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NBN Co. Ltd.

-u-I-s? !ostl# co!"osed o9 &ni:ersities3 Schools and;os"itals E NBN Co has had discussions *ith +o,ern!ent on the epectations o$ ho*

PPs should be ser,ed. NBN Co is undertaing a trial *ith a nu!ber o$ PPs to $urther

re$ine its engage!ent !odel. Adeuatel# Ser:ed E The +o,ern!ent has released a polic paper setting out thecriteria and a process $or deter!ining *hether eisting $ibred pre!ises are ade)uatel

ser,ed. NBN Co *ill not be re)uired to o,erbuild eisting net*ors *hich are ade)uatel

ser,icing pre!ises. Non8-re!ises >Non8Addressa-oIs? E NBN Co assu!es the continued use ande$$ecti,eness o$ the

ACCC list currentl on the ACCCs *ebsite.12

&ni:ersal Ser:ice Arrange!ents E The 2012-15 Corporate Plan includes a speci$icpro,ision $or the cost o$ connecting and pro,iding *holesale ser,ices to 9ni,ersal

&er,ice bligation "&S.# paphones. The Plan also includes esti!ates o$ NBN Cos

contribution to the T9&/A le,. S"ectru! )euire!ents E As at ?0


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NBN Co. Ltd.

$E-L.*MEN' F.)ECAS'S

+1 .:er:iew

n the period since the publication o$ the 2011-1? Corporate Plan it has been necessar tore,ise

NBN Cos deplo!ent $orecasts to tae account o$ a nu!ber o$ $actors4 8elas in the $inalisation o$ the conditions precedent to the Telstra 8e$initi,e Agree!ents.t *as originall assu!ed that b ?0


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NBN Co. Ltd.

These $orecasts are consistent *ith the obKecti,e o$ Construction Co!!enced or

Co!pleted $or approi!atel :5>%000 ibre pre!ises b ?1 8ece!ber 2012% in line *ith

NBN Cos I12 !onth national ibre rollout schedule and Construction Co!!enced or

Co!pleted $or approi!atel ?.5 !illion ibre pre!ises b ?0 %000 165%00 1>?%00 - 1>?%000

;2012 2@%000 1:%00 20?%00 10%000 21?%000

;201? 2>6%00 ?20%00 606%00 55%000 661%000

;201 1%12@%00 ?:%00 1%50?%00 1:>%00 1%6>1%00

;2015 2%@@%00 :52%00 ?%251%00 1?%00 ?%66%00

F*2016 3762300 0,300 3,6300 ,6300 32300

&ource4 NBNCo

Pre!ises or lots passed G co,ered rounded to the nearestthousands.

Pre!ises are passed G co,ered *hen the shared net*or and ser,ice ele!ents are installed% accepted% co!!issioned and

read $or ser,ice *hich then enables an nd-9ser to order and purchase a broadband ser,ice $ro! their choice o$ retail ser,ice

pro,ider.

JGreen9ields in New $e:elo"!entsK lots "assed !a# not eual "re!ises "assed de"ending on de:elo"erHsti!e9ra!e to


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Net*or Ter!ination 8e,ices >N'$s? and reliable Po*er &uppl 9nit "-S% *ith Batter Bacup >BB&? option "$oribre pre!ises#.

JF''- Green9ields are de!and8dri:en acti:ities which are su


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NBN Co. Ltd.

+2 'ransitNetwor

NBN Co has prioritised Transit connecti,it to support earlier connection o$ +reen$ields

estates ahead o$ the ,olu!e rollout. Prioritising the Transit rollout also supports the rapid

deplo!ent o$ the ied (ireless net*or. The 2012-15 Corporate Plan $orecasts that theTransit net*or *ill be co!pleted b the end o$ ;2015% *ith the bul o$ the net*or in

place b the end o$ ;201.

+ Fi

# -remises -assed 2aily Run Rate (*.+ =or0ing2aysBAear) 7,

+reen$ields Pre!ises Passed "3000s Pre!ises# -

G# -remises -assed 2aily Run Rate (*.+ =or0ing2aysBAear) '

Fi000s -re!ises? 17

2@ 2>6 1%12@ 2%@@

* 1+*8 ,,7* .8*

10 55 1:> 1?

+ 179 9* 91

1 130, 2312

?%>62 5%16> 6%2? :%610 >%>:@

..+ .**. .+*+ 76 .+78

:6? 1%111 1%15 1%6:? 1%@0

1++ 1,9* 1*1. 1+,, 9**

362 632, ,377 327

10%0@1

87

2%111

8*9

123202

Fi20 4oring $a#s*ear? , 7 1320, 376 632 6370 6361, 632 3,70 63001 36,,

Bro*n$ields Pre!ises Connected "3000s Pre!ises# 1

# -remises Connected 2aily Run Rate (*.+ =or0ing2aysBAear) ,

+reen$ields Pre!ises Connected "3000s Pre!ises# -

G# -remises Connected 2aily Run Rate (*.+=or0ing 2aysBAear) '

Fi000s -re!ises? 1

? 20 1%?11

11 161 1.+ ,.6.

1 10 6: 20

* + **7 .8

7, 131

2%55@ ?%566 %5:> 5%6> 6%1@5

991 +*9 +7 ,.6* *9+8

:: ::5 1%01: 1%22: 1%12

1+9* 1189 968 81 7+

306 31 3 636 ,360,

6%@?@

*976

1%5:

69

731

Fi20 4oring $a#s*ear? 1 201 13,1 311 6307 3217 3016 30 367 362

ied (ireless O &atellite Pre!ises Co,ered "3000sPre!ises# 165

ied (ireless O &atellite Pre!ises Connected "3000sPre!ises# 0

1: ?20 ?: :52

10 ?> 6 100

@0: @21 @? @> @61

15 161 1@1 206 21@

@:

2?2

'otal -re!ises Connected 8 All -lat9or!s >000s -re!ises? 1 1 2 1 1361 3171 302 3,7 6301 ,372, 73,

&ource4 NBNCo

8eplo!ent co!pletion planned in 00 pre!ises passed per da "total o$ Bro*n$ields plus +reen$ields pre!ises# *ith

an a,erage o$

6%200 pre!ises passed per da during pea construction "assu!ing a 10 ear rollout

and 250 *oring das per ear#.

NBN Co pro,ided a co!parison *ith rollouts in other countries in the 2011-1? Corporate

Plan% an updated ,ersion o$ *hich is sho*n in hibit 5- belo* and indicates that the NBN

Co $orecast run

rate o$ approi!atel 1.: !illion pre!ises passed per ear% albeit challenging% is

achie,able.


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Corporate Plan 2012-15 ?: 6 August 2012


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2 :00

? 00

1 :00

1 :001 00

:00

1>0

150

150

10

120

120

:0

1000 so9 -re! ses-assed -er *ear

NBN Co. Ltd.

!%hi&it .' Annual Rollout Comparison with "therCountries

-rHe!ises -aissed-er *ear>Million?

9&A "=eriQon#

?.%

00 pre!ises passed per da during pea construction acti,it#.This co!pares to a $orecast in the 2011-1? Corporate

Plan o$ 6%000pre!ises per da "rounded% ,ersus $orecast dail run rate o$ 5%@00 pre!ises passedper da#.

NBN Co epects that% o,er the ? ears to


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1?NBN Co is designing the NBN to be capable o$ deli,ering these speeds to NBN Cos 7etail &er,ice

Pro,iders ")S-s# and (holesale &er,ice Pro,iders "4S-s# ,ia ibre% ied (ireless and &atellite. &peedsactuall achie,ed b retail nd-9sers *ill depend on a nu!ber o$ $actors including the )ualit o$ their e)uip!entand in-pre!ises connection% the broadband plans o$$ered b their ser,ice pro,ider and ho* their ser,ice pro,iderdesigns its net*or to cater $or !ultiple nd-9sers.

Corporate Plan 2012-15 ?> 6 August 2012


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NBN Co. Ltd.

++2 Contract with Ericsson and Fi@ed 4ireless First)elease Sites

n August 2011% NBN Co announced that the co!!unities o$ Too*oo!ba% Ta!*orth%

Ballarat% 8ar*in and +eraldton *ould be the $irst to recei,e the ied (ireless Access

&er,ice. (or has co!!enced on all $i,e sites $or the design and construction.

The ied (ireless rollout plan that has been de,eloped taes into account the a,ailabilit

o$ the Transit net*or% spectru! and liel co!!unit consultations $or the building o$

ne* poles and to*ers $or the ied (ireless net*or.

++ Long 'er!Satellite

The planned launch date $or the t*o satellites that $or! the basis o$ NBN Cos Long Ter!

&atellite &er,ice re!ains unchanged $ro! the 2011-1? Corporate Plan% at ;2015. NBN

Co has success$ull co!pleted agree!ents $or the deli,er o$ the satellites and $or

essential ground e)uip!ent. (or *ill continue through ;201? on the planning and

design o$ ground stations and on selecting NBN

Cos satellite launch

partner.


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Corporate Plan 2012-15 ?@ 6 August 2012


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6 NE'4.)5 ).LL.&' AN$C.S'S

6+1 Networ )ollout New$e:elo"!ents

6+1+1

.:er:iew

ro! 1


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handled b NBN Co% substantiall

reducing the +reen$ield $orecasts $or ;2011 and

;2012.



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NBN Co. Ltd.

n addition% the 2011-1? Corporate Plan underesti!ated the signi$icant ti!e lag

bet*een the re)uired date o$ ser,ice a,ailabilit o$ the $irst pre!ises in an estate and

the connection and acti,ation o$ all pre!ises on that de,elop!ent. This is particularl

length in Broadacre &ingle 8*elling 9nits "S$&s# de,elop!ents. n these &89

de,elop!ents NBN Co is re)uired to pro,ide ibre across the entire stage o$ the

de,elop!ent "re$erred to as Ilots passed# et% phsical pre!ises are constructed andoccupied at a !uch slo*er rate.

B+ Forecast Ca"italE@"enditure

(ith the rollout o$ ibre to Ne* 8e,elop!ents% !an o$ these de,elop!ents *ill be

connected *ell be$ore Bro*n$ields deplo!ent occurs and the Transit net*or is

operational. This has re)uired NBN Co to i!ple!ent interi! connecti,it arrange!ents

*hilst the Transit net*or is being constructed. As the Transit net*or is built%

connected Ne* 8e,elop!ents sites *ill be !igrated to the per!anent net*or.

The capital in,est!ent is $ront-end loaded and *ill represent signi$icant additional costs asNBN Co needs to4 8esign and build a Te!porar Transit ibre Net*or "''FN# as *ell as

etensions o$ the 8istribution net*or ahead o$ the NBN ibre net*or being

deploed in these geographicall dispersed and relati,el s!all siQe areas. These long

routes $ro! Telstra echanges to the estate boundaries represent a signi$icant

proportion o$ the increased $orecast costs $or Ne* 8e,elop!ents in the 2012-15

Corporate Plan and Pro,ide ibre access aggregation capabilit. NBN Co has de,ised an interi! engineeringsolution% using on-site Te!porar ibre Access Nodes "'8FANs# deploed ,ia a roadside

cabinet% to enable each de,elop!ent to be connected to an interi! Transit ser,ice.

NBN Co has designed the architecture to ensure that passi,e and acti,e assets can be $ull

utilised in the per!anent net*or. The acti,e and passi,e assets are identical to those

deploed in Bro*n$ields and are there$ore able to be re-used. The interi! $ibre build $ro!

the estate boundaries to the !anaged bachaul ser,ice connected at the Telstra

echange location is built to NBN Cos passi,e speci$ications and *ill $or! part o$ the

8istribution net*or *hen the de,elop!ent is connected to the per!anent Point o$

nterconnect "-oI#. As the Transit net*or is deploed% the T-ANs *ill be replaced b

per!anent AN sites and all acti,e electronic co!ponents in the T-ANs are epected to be

re-used in other AN sites.

Ne,ertheless in the short ter! capital in,est!ent *ill eceed pre!ises de!and as the

e)uip!ent capacit *ill not be $ull utilised $or so!e ti!e a$ter the initial de,elop!ent

stages "noting that the le,el o$ utilisation *ill di$$er estate b estate#.

The 2012-15 Corporate Plan also taes account o$ higher design and construction costs

due to !obilisation o,erheads incurred b NBN Cos construction partners. These

!obilisation o,erheads are due to t*o !ain $actors4 'a,ing to deplo a *or$orce in geographicall dispersed and relati,el s!all siQeareas% and there$ore not getting econo!ies o$ scale as en,isaged in Bro*n$ields ibre

&er,ice Area /odules "FSAMs# and

'a,ing to respond to !ultiple truc rolls during the li$eccle o$ the Ne* 8e,elop!ents%as lots passed beco!e pre!ises passed% and as these pre!ises later beco!e occupied.



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NBN Co. Ltd.

C+ Forecast ."eratingE@"enditure

As the In$rastructure Pro,ider o$ Last 7esort% NBN Co *ill pro,ide ibre in eligible

de,elop!ents an*here inside the long ter! ibre $ootprint% regardless o$ location and

tpe% *here re)uested to do so b de,elopers. These de,elop!ents !a range $ro!

Broadacre &89s to large ,ertical /89s% retire!ent ,illages and co!!ercial and industrial

de,elop!ents. The *ide dispersion% as *ell as the di,ersit o$ de,elop!ent tpes% re)uires

national and !ulti$unctional capabilities.

The perating penditure i!pacts o$ this re)uire!entinclude4 Net*or perations $ield sta$$ ha,e to acti,ate pre!ises across a dispersed

geograph% *ith conse)uent resource and scheduling ine$$iciencies the net e$$ect

being higher sta$$ nu!bers and lo*er producti,it ach Ne* 8e,elop!ent is connected ,ia a !anaged interi! Transit ser,ice% selected$ro! a panel o$ &er,ice Pro,iders% to the Po to enable 7&Ps to deli,er ser,ices toresidents in each Ne* 8e,elop!ent. The cost o$ these !anaged ser,ices ,aries

!aredl according to the nu!ber o$ bachaul pro,iders in a particular location. n

!etropolitan $ringe "tpicall *here !ost Broadacre de,elop!ents are# and regional

areas% there is o$ten !ini!al bachaul co!petition and prices are signi$icantl higher

and nteri! Transit costs are incurred to ser,ice the $irst pre!ises in a ne* de,elop!ent%e,en though it !a tae 12 E 1> !onths be$ore that de,elop!ent is populated to

the point o$ e$$icientl using the interi! Transit capacit.

The 2012-15 Corporate Plan assu!es an increased cost per pre!ises $or Ne*8e,elop!ents to re$lect all o$ the abo,e $actors. These costs are based on contracts

alread entered into or under

negotiation

.


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Corporate Plan 2012-15 ? 6 August 2012


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NBN Co. Ltd.

6+2 Networ )ollout CostForecast

6+2+1 Su!!ar# o9 Ma=or Ca"ital E@"enditure Changes 9ro! 201181 to 201281Cor"orate -lan

Total Capital penditure during the Construction period has increased b F1.billion $ro!F?5.@ billion in the 2011-1? Corporate Plan to F?:. billion in the 2012-15

Corporate Plan A reduction in the costs o$ e)uip!ent has been re$lected in the 2012-15 Corporate Plan%*hich is o$$set b an increase in other costs. These costs relate predo!inantl to

additional labour costs pro,isioned $or $actors such as increased net*or distance

esti!ates% additional *ors in Custo!er Connect and /ulti-8*elling 9nits "M$&s#%

and to higher ,olu!es o$ IBuild 8rops The 2012-15 Corporate Plan assu!es the ter!s o$ the ptus 'C Agree!entare $ull i!ple!ented the e$$ect being an increase in Capital penditure $or the

!igration o$ the ptus 'C subscribers and Additional Capital penditure relating to the i!ple!entation o$ Polic 8ecisionshas been included in the 2012-15 Corporate Plan.

6+2+2 Fi%000 !s o$ co,ered road distance and 206%000 !s o$ phsical net*or distance

"up $ro! 1?0%000 !s o$ co,ered road distance and 1>1%000 !s o$ phsical net*or

distance in 2011-1? Corporate Plan% respecti,el#.

The corresponding cable distances ha,e also been increased to acco!!odate the

increased co,ered road and phsical net*or distances% as *ell as the deplo!ent

o$ Tether Cables "ITpe 2

Architecture#

.

B+ &"date on Networ $esignK $esign o9 the Fi'#"e 2ArchitectureH?

NBN Co has designed the passi,e optical net*or hierarch beginning *ith a ibre

8istribution Area "F$A#% *hich connects approi!atel 200 nd-9sers o,er the local

ibre net*or to a ibre 8istribution 'ub "F$;#. A group o$ up to 16 8As $or! a ibre

&er,ing Area /odule "FSAM#. The 8istribution net*or pro,ides di,erse optical paths

$ro! each ibre 8istribution 'ub to the ibre Access Node% *hich is usuall located in a

Telstra echange. The di,erse optical paths allo* NBN Co to !eet ser,ice restoration ti!es

in the e,ent o$ ibre cuts in the 8istribution net*or.

n the 2011-1? Corporate Plan% NBN Co had based its costing on an architecture

in$or!ed b o,erseas deplo!ents "re$erred to as I'#"e 1 ArchitectureH#. As a

conse)uence o$ the Telstra 8e$initi,e Agree!ents% NBN Co $ocused attention on

opti!ising the architecture $or the re-use o$ the Telstra duct net*or and using Iribbon

rather than Iloose tube $ibre. This resulted in a change to the passi,e net*or design and is


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NBN Co. Ltd.

The ribbon $ibre chosen b NBN Co is a 12 $ibre !atri% in *hich 12 $ibres are contained

*ithin an acrlate coating. This !atri allo*s $or all 12 $ibres to be prepared and $usion

spliced si!ultaneousl% signi$icantl reducing the cost o$ e)uip!ent and reducing the ti!e to

recti$ cable cuts.

8ecreases in e)uip!ent costs ha,e no* been $actored into the 2012-15 Corporate Plan as a

result o$ this architectural change and also due to $ibre e)uip!ent contracts alread entered

into.

6+2+ Custo!erConnect

A+ A""roach to Custo!er Connect >Build$ro"sH?

The connection $ro! the street to the pre!ises can be carried out *hen the distribution

and local seg!ents o$ the ibre net*or are being built E a IBuild 8rop or *hen an order

$or a ser,ice is recei,ed $ro! a 7etail &er,ice Pro,ider ")S-# E a I8e!and 8rop.

n the 2011-1? Corporate Plan it *as assu!ed that I8e!and 8rops *ould be used. urther

analsis suggests IBuild 8rops $ro! the street to the pre!ises $or &89s and /89s are

the !ost e$$ecti,e *a to !ini!ise !obilisation G de-!obilisation costs and to realise

producti,it i!pro,e!ents. This is% in part% a conse)uence o$ the greater certaint in uptae

due to the co!!ence!ent o$ the Telstra 8e$initi,e Agree!ents and the ptus 'C

Agree!ent.

The assu!ptions regarding IBuild 8rops are no* as$ollo*s4 8rops to 100 o$ /89 pre!ises passed to a Pre!ises Connection8e,ice "-C$# 8rops to @0 o$ Bro*n$ields &89s to a PC8 "assu!ing 10 non-consent or ,acantho!es# and 8rops to 100 o$ +reen$ields &89s and /89s to a Net*or Ter!ination 8e,ice

"N'$# *here the pre!ises ha,e been co!pleted "pre-installs#.

As part o$ the re,ie* o$ the IBuild 8rop strateg% incre!ental costs ha,e been e!bedded

in this Plan $or the noti$ication process and access to pre!ises $or the installation o$ the

lead-in $ro! street to PC8.

B+ M$&

Ca


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an &89% and *ill be co!pounded b the di,ersit in /89 designs% the lo* nu!ber o$ nd-

9ser pre!ises per /89 location "a,erage @ units per /89 building% ecluding duplees#

and the age o$ these /89s

"lac o$ riser

in$rastructure#.



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Broadband.



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NBN Co. Ltd.

The operation o$ the NBN Co net*or% including acti,ation and assurance transactions% *ill

be highl auto!ated through progressi,e capabilit being deli,ered b the &&

progra!!e. 8uring ;201? the Business to Business "B2B# gate*a *ill support

increasing le,els o$ auto!ation bet*een NBN Co and Access &eeers on a non-

discri!inator basis. Progressi,e && capabilit releases *ill enable Access &eeers to

!onitor their ser,ices and operationall support their nd-9sers.

ollo*ing co!pletion o$ the additional !aKor releases it is anticipated that NBN Co

*ill !o,e to*ards a continuous deli,er !odel% *hich *ill allo* )ualit and tested code to

be deli,ered into production on a continuous basis.

n addition% NBN Co is planning a nu!ber o$ Acti,e Net*or 7eleases "AN)s# and

Passi,e Net*or 7eleases "-N)s# to deli,er a range o$ enhanced product and

operational business capabilities% including4 Acti:e Networ )elease >AN)? *ill be released $or net*or *ide deplo!ent inlate 2012 and *ill deli,er /ulticast capabilit and broadband ,oice enhance!ents.

The technolog enablers pro,ide operational capabilit enhance!ents. Acti:e Networ )elease >AN)? *ill be released $or net*or *ide deplo!ent in!id 201? and *ill deli,er ualit o$ &er,ice "oS# architecture and the capabilit $or

higher speeds in the ied (ireless net*or. This *ill enable the National Connecti,it

Net*or "NCN# that pro,ides national Laer 2 and Laer ? ser,ices to support NBN Co

in$rastructure. -assi:e Networ )elease 2 >-N)2? *ill be released $or net*or *ide deplo!ent inlate 2012 and deli,ers passi,e ibre net*or Pre!ises nstall )uip!ent "-IE#.

The esti!ated costs o$ de,eloping and enhancing NBN Cos core T sste!s and $or

supporting additional AN7 and PN7 ha,e been included in the 2012-15 Corporate Plan.

6+ I!"le!entation o9 ."tus ;FCAgree!ent

The 2011-1? Corporate Plan did not include the i!pact o$ an agree!ent $or the !igrationo$ the

ptus 'C subscribers to the NBN o,erti!e.

The 2012-15 Corporate Plan incorporates the !igration o$ an initial addressable nu!ber

o$ 0.5 !illion ptus 'C subscribers under the ptus 'C Agree!ent.

6+ I!"le!entation o9 -olic#$ecisions

As noted in &ection .?% -olicy 2ecisions% the 2012-15 Corporate Plan

incorporates the i!ple!entation o$ se,eral Polic decisions% being4 Points o$

nterconnect% Ne* 8e,elop!ents% Batter Bacup% ied (ireless and Long Ter!

&atellite anticipated technolog upgrades% ibre net*or $ull co,erage o$ Band 1 and Band

2% Public n$or!ation on /igration "-IM#% 9& Paphones% Public nterest Pre!ises "-I-s#%

and T9&/A Le,.

No other outstanding polic decisions ha,e been )uanti$ied and incorporated into the

2012-15

Corporate

Plan.


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Corporate Plan 2012-15 : 6 August 2012


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NBN Co. Ltd.

'his "age is le9t intentionall# 6 August 2012


89/162

NBN Co. Ltd.

, MA)5E' EN(I).NMEN' AN$-).$&C'S

,+1 Maret En:iron!ent&"date

,+1+1 Maret $e!and Assu!"tions )e!ain theSa!e

/aret de,elop!ents and trends in the past ear ha,e been in-line *ith "or ahead o$#

epectations% supporting NBN Cos core re,enue assu!ptions contained in the 2011-1?

Corporate Plan. As $urther eplained belo*% the $ollo*ing e re,enue dri,ers re!ain

largel unchanged $ro! the 2011-1?

Corporate Plan. e pointsinclude4

&trong data usage gro*th has continued since2011-1?

ied broadband speed gro*th has been restricted on legac non-$ibrenet*ors

NBN Cos pricing !odel has been ,alidated b the!aret and

7esidential *ireless-onl ho!es are *ithinepectations.

(ith co!!ercial ser,ices recentl launched% the integration and analsis o$ actual nd-9ser

data *ill be included in $uture updates to the Corporate Plan.

,+1+2 $ata &sageGrowth

8ata usage continues to increase at an annual rate considerabl higher than thatassu!ed in the

2011-1? Corporate Plan% as indicated b the $ollo*ing range o$ recent eternal bench!ar

gro*th rates% see hibit :-1.

!%hi&it 7'1 5ummary o 2ata Dsage

enchmar0s

5e# Bench!ars $ata &sage "er !onth Growth

Australia

AB& E 'istorical trend - iedBroadband

8o*nloads per subscriber "+B G!th#

"AB& >15?.0% 8ece!ber 2011#

2011 E 20 +BG!onth >0 ;o;

51 ?r CA+7

Telstra E 'istorical trend - Broadband

data tra$$ic per user on the CopperNet*or

"Telstra A+/ planator/e!orandu! - +rant &a!uel 7eport%2011#

nGa ;11 - >0 ;o;

International


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NBN Co. Ltd.

ricsson E +lobal orecast - ied

Broadband Tra$$ic gro*th

"Tra$$ic and /aret 7eport% >5 TBG!onth to 115%11

TBG!onth# o,er the last 12 !onths. The total a,erage blended "$ied and !obile#!onthl usage per user "the AB& ied plus (ireless categories# is no* circa 10.

+BG!onth "a 5:.> or ?.> +BG!onth increase co!pared to the 8ece!ber 2010

uarter results#. The blended "$ied and !obile# !onthl usage per subscriber

gro*th o$ 5:.> is a result o$ an >0.5 gro*th in $ied line !onthl usage per

subscriber and 5.6 gro*th in !obile !onthl usage per subscriber o,er the 12

!onths to 8ece!ber 2011 and

o ied broadband data accounted $or @?.? o$ the total !onthl data do*nloaded

o,er the period.

Telstra A+/ planator /e!orandu!15 cites that the co!pan had *itnessed an E8+Fgrowth in &road&and data traic per user on the Copper /etwor0 in the inancial yearended ,+ :une

*+11 "re$er to hibit :-2#.

!%hi&it 7'* ;elstra>s #i%ed road&and ;raic Growth

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Documents

Nbn Co Corporate Plan