NBN Co Corporate Plan

NBN Co. Ltd.
Corporate Plan 201215
6 August 2012
Corporate Plan 2012-15
6 August 2012
NBN Co. Ltd.
Legal Notice
Introductio n This Corporate Plan has been prepared b NBN Co Li!ited "NBN Co# $or its shareholder !inisters% &enator the 'on Penn (ong and &enator the 'on &tephen Conro "Shareholder Ministers# as re)uired b the Commonwealth Authorities and Companies Act 1997 "Cth#% the Commonwealth Authorities and Companies Regulations 1997 "Cth#% the Co!!on*ealth +o,ern!ent Business -nterprise +o,ernance and .,ersight +uidelines ".ctober 2011# "GBE Guidelines# and Australian +o,ern!ent polic as co!!unicated to NBN Co b the Co!!on*ealth $ro! ti!e to ti!e. Forward State!ents Loo ing
The Corporate Plan has been prepared $or the consideration o$ the &hareholder /inisters onl % and contains $or*ard loo0ing state!ents that are based on NBN Co1s best considered pro$essional assess!ent o$ present econo!ic and operating conditions% present Australian +o,ern!ent polic % and a nu!ber o$ assu!ptions regarding $uture e,ents and actions *hich% at the date o$ this Corporate Plan% are e2pected to ta0e place. &uch $or*ard loo0ing state!ents are not guarantees o$ $uture per$or!ance and in,ol,e 0no*n and un0no*n ris0s% uncertainties% assu!ptions and other i!portant $actors% !an o$ *hich are be ond NBN Co1s control. (hile such $or*ard loo0ing state!ents are based on NBN Co1s best considered pro$essional assess!ent% NBN Co1s o$$icers do not gi,e an assurance to an third part that the results% per$or!ance or achie,e!ents e2pressed or i!plied b such $or*ard loo0ing state!ents *ill actuall occur% and such state!ents should not be relied on or considered to be a representation o$ *hat *ill happen b an third part . .ther than as re)uired b NBN Co3s reporting obligations to the Co!!on*ealth% NBN Co and its o$$icers ha,e no obligation to update these $or*ard loo0ing state!ents based on circu!stances% de,elop!ents or e,ents occurring a$ter the date o$ this Corporate Plan. Co"#rig ht Cop right NBN Co Li!ited 2012. Cop right subsists in this Corporate Plan. NBN Co o*ns that cop right. .ther than as per!itted under the Copyright Act 1968 "Cth#% this Corporate Plan "in part or as a *hole# cannot be reproduced% published% co!!unicated or adapted *ithout the prior *ritten consent o$ NBN Co. An re)uest or in)uir to so use the Corporate Plan should be addressed to4 The Chie$ 5inancial .$$icer NBN Co Li!ited Le,el 11% 100 Arthur &treet North & dne N&(
2060 Australi a $ate This Corporate Plan is dated 6 August 2012. Corporate Plan 2012-15 2 6 August 2012
NBN Co. Ltd.
TABL- .5 C.NT-NT&
1 E%EC&'I(E S&MMA)*+++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++, 1.1 6NT7.89CT6.N T. T'- 2012-15 C.7P.7ATPLAN......................................................................................... : 1.2 &9//A7; .B<-CT6=-&................................................................................................................................ > 1.? 2012-15 C.7P.7AT- PLAN '6+'L6+'T& ....................................................................................................... @ 1.A /.=6N+ 57./ T'- 2011-1? C.7P.7AT- PLAN T. 2012-15 C.7P.7AT- PLAN ............................................... 10 1.5 &9//A7; .5 B-; C.7P.7AT- PLAN A&&9/PT6.N&....................................................................................... 1A 2 -)./EC' S'A'&S &-$A'E++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++ 1, 2.1 T-L&T7A AN8 .PT9& A+7--/-NT& ............................................................................................................. 1: 2.2 C9&T./-7& ............................................................................................................................................ 1: 2.? N-T(.7B 8-PL.;/-NT ........................................................................................................................... 1> 2.A 6T &;&T-/& ............................................................................................................................................. 21 2.5 8-&6+N .5 T'- ACT6=- AN8 PA&&6=- N-T(.7B& ........................................................................................... 22 2.6 5AC6L6T6-& ............................................................................................................................................... 2? 2.: 7-+9LAT.7; AN8 P.L6C; 8-C6&6.N& 9P8AT............................................................................................... 2A 2.> L.CAL C.NT-NT ...................................................................................................................................... 2A 0 C.M-AN* &-$A'E++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++ 21 ?.1 /ANA+-/-NT 7-&T79CT97- 6N A9+9&T 2011 ............................................................................................ 25 ?.2 P-.PL- AN8 P.L6C6-& ............................................................................................................................... 2: ?.? '-ALT'% &A5-T; AN8 -N=67.N/-NT "'&-# ................................................................................................. 2: ?.A 5.C9& .N C.//9N6T; 7-LAT6.N&............................................................................................................. 2: ?.5 B9&6N-&& C.NT6N96T; .............................................................................................................................. 2> ?.6 C9AL6T; C.NT7.L AN8 C.NT6N9.9& 6/P7.=-/-NT .................................................................................... 2> ?.: '9/AN 7-&.97C-% 6N89&T76AL 7-LAT6.N& AN8 &A5-T; ................................................................................ 2> 2 ACCESS A))ANGEMEN'S3 )EG&LA'.)* AN$ -.LIC* $ECISI.NS +++++++++++++++++++++++++++++++++++++++++++++++++++++++++ 01 A.1 ('.L-&AL- B7.A8BAN8 A+7--/-NT "(BA# ............................................................................................. ?1 A.2 &P-C6AL ACC-&& 9N8-7TAB6N+ "&A9# ......................................................................................................... ?1 A.? P.L6C; 8-C6&6.N&
.................................................................................................................................... ?2 1 $E-L.*MEN' F.)ECAS'S +++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++ 01 5.1 .=-7=6-( .............................................................................................................................................. ?5 5.2 T7AN&6T N-T(.7B .................................................................................................................................. ?: 5.? 56B7- C.N&T79CT6.N P7.+7A//............................................................................................................ ?: 5.A 56D-8 (67-L-&& AN8 &AT-LL6T.................................................................................................................. ?> 6 NE'4.)5 ).LL.&' AN$ C.S'S +++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++ 21 6.1 N-T(.7B 7.LL.9T E N-( 8-=-L.P/-NT& ................................................................................................ A1 6.2 N-T(.7B 7.LL.9T E C.&T 5.7-CA&T ........................................................................................................ AA 6.? 6T &;&T-/& AN8 N-T(.7B 7-L-A&-& .......................................................................................................... A6 6.A 6/PL-/-NTAT6.N .5 .PT9& '5C A+7--/-NT ............................................................................................. A: 6.5 6/PL-/-NTAT6.N .5 P.L6C; 8-C6&6.N& ...................................................................................................... A: , MA)5E' EN(I).NMEN' AN$ -).$&C'S +++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++ 26 :.1 /A7B-T -N=67.N/-NT 9P8AT................................................................................................................ A@
6 August 2012
NBN Co. Ltd.

:.2 P7.89CT 8-=-L.P/-NT .......................................................................................................................... 55 :.? NBN-BA&-8 7-TA6L PLAN&........................................................................................................................ 5: 7 )E(EN&E F.)ECAS'S ++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++ 61 >.1 &NAP&'.T .5 7-=-N9- 5.7-CA&T& ............................................................................................................ 61 >.2 7-=-N9- PLAN ........................................................................................................................................ 61 6 FINANCIAL F.)ECAS'S ++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++ ,1 @.1 &9//A7; 56NANC6AL 5.7-CA&T& ............................................................................................................... :1 @.2 &C.P- 5.7 T'- 2012-15 C.7P.7AT- PLAN ................................................................................................. :2 @.? 5.7-CA&T B-; 56NANC6AL 6N86CAT.7& ......................................................................................................... :? @.A C./PA76&.N T. 2011-1? C.7P.7AT- PLAN .............................................................................................. :A @.5 8-PL.;/-NT P7.56L.............................................................................................................................. :5 @.6 T;P- .5 8-PL.;/-NT 5.7 T'- 56B7N-T(.7B............................................................................................ :5 @.: CAP6TAL -DP-N86T97.............................................................................................................................. :5 @.> .P-7AT6N+ -DP-N86T97-.......................................................................................................................... :: @.@ (.7B6N+ CAP6TAL ................................................................................................................................... :> @.10 TADAT6.N............................................................................................................................................... :> @.11 59N86N+ NBN C. ................................................................................................................................... :> 10 )IS5 MANAGEMEN' ++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++ 70 10.1 76&B /ANA+-/-NT &;&T-/ ...................................................................................................................... >? 10.2 C.7P.7AT- PLAN 76&B& ............................................................................................................................ >A 11 GL.SSA)* .F 'E)MS ++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++ 76
6 August 2012
NBN Co. Ltd.
TABL- .5 -D'6B6T&
-D'6B6T 1-14 C./PA76&.N .5 2011-1? C.7P.7AT- PLAN =&. 2012-15 C.7P.7AT- PLAN 5.7 T'- 56B7- N-T(.7B C.N&T79CT6.N P-76.8 "F B6LL6.N# "N./6NAL 8.LLA7&#....................................................... 10 -D'6B6T 1-24 6/PACT .5 C'AN+-& /.=6N+ 57./ 2011-1? T. 2012-15 C.7P.7AT- PLAN 5.7 T'- 56B7- N-T(.7B C.N&T79CT6.N P-76.8 "F B6LL6.N# "N./6NAL 8.LLA7&#....................................................... 11 -D'6B6T 1-?4 C./PA76&.N .5 B7.(N56-L8 P7-/6&-& PA&&-8 B-T(--N C.7P.7ATPLAN& ....................... 12 -D'6B6T 1-A4 C./PA76&.N .5 B-; A&&9/PT6.N& 6N T'- 2012-15 C.7P.7AT- PLAN T. T'2011-1? C.7P.7AT- PLAN ........................................................................................................................................ 1A -D'6B6T 1-54 P7.56T AN8 L.&& "C9/9LAT6=-% F B6LL6.N# "N./6NAL 8.LLA7&# ............................................... 16 -D'6B6T 1-64 59N86N+ &9//A7; "C9/9LAT6=-% F B6LL6.N# "N./6NAL 8.LLA7&# .......................................... 16 -D'6B6T 2-14 86A+7A/ .5 T'- T7AN&6T AN8 56B7- ACC-&& N-T(.7B& ........................................................... 1> -D'6B6T 2-24 PLAT5.7/ AN8 CAPAB6L6T6-& ......................................................................................................... 22 -D'6B6T ?-14 NBN C. .7+AN6&AT6.NAL &T79CT97- 2012-15 ............................................................................ 25 -D'6B6T ?-24 NBN C.1& 59NCT6.N& AN8 6NT-75AC-& ......................................................................................... 26 -D'6B6T 5-14 P7-/6&-& PA&&-8 .7 C.=-7-8 "C9/9LAT6=- ;-A7-.N;-A7#.................................................... ?6 -D'6B6T 5-24 P7-/6&-& (6T' ACT6=- &-7=6C- "C9/9LAT6=- ;-A7-.N;-A7#................................................... ?6 -D'6B6T 5-?4 8-PL.;/-NT &C'-89L- 5.7 2012-15 C.7P.7AT- PLAN ............................................................. ?: -D'6B6T 5-A4 ANN9AL 7.LL.9T C./PA76&.N (6T' .T'-7 C.9NT76-& .......................................................... ?> -D'6B6T :-14 &9//A7; .5 8ATA 9&A+B-NC'/A7B&..................................................................................... A@ -D'6B6T :-24 T-L&T7A1& 56D-8 B7.A8BAN8 T7A556C +7.(T' .......................................................................... 50 -D'6B6T :-?4 9&-8 6NT-7NAT6.NAL BAN8(68T' +7.(T' B; 7-+6.N% 200:-2011 ......................................... 51 -D'6B6T :-A4 8.(N&T7-A/ 8-/AN8 A&&9/PT6.N& 5.7 7-&68-NT6AL C9&T./-7& ..................................... 5? -D'6B6T :-54 9P&T7-A/ 8-/AN8 &C-NA76. A&&9/PT6.N& ............................................................................. 5A -D'6B6T :-64 8.(NL6NB BAN8(68T' 7-C967-/-NT& =&. -=.L9T6.N .5 T-C'N.L.+; BAN8(68T' .......... 5A -D'6B6T :-:4 9PL6NB BAN8(68T' 7-C967-/-NT& =&. -=.L9T6.N .5 T-C'N.L.+; BAN8(68T' ................ 55 -D'6B6T :->4 C./PA7AT6=- B9N8L-8 P76C6N+ NBN 7-TA6L 12G1 /BP& E A8&L 2H........................................... 5> -D'6B6T :-@4 C./PA7AT6=- B9N8L-8 P76C6N+ NBN 7-TA6L 25G5 /BP& E A8&L 2H........................................... 5@ -D'6B6T :-104 C./PA7AT6=- B9N8L-8 P76C6N+ NBN 7-TA6L 100GA0 /BP& E A8&L 2H..................................... 5@ -D'6B6T :-114 C./PA7AT6=- ('.L-&AL- P76C6N+ NBN =&. T-L&T7A ............................................................... 60 -D'6B6T >-14 7-=-N9- PLAN E 5.7-CA&T &9//A7;.......................................................................................... 61
-D'6B6T >-24 5.7-CA&T 7-=-N9- C./P.&6T6.N "F /6LL6.N# "N./6NAL 8.LLA7&#......................................... 62 -D'6B6T >-?4 C./PA76&.N .5 B7.(N56-L8& P7-/6&-& C.NN-CT-8 "C9/9LAT6=-# "I000&# ......................... 6? -D'6B6T >-A4 .=-7ALL 56B7- &9B&C76B-7 &PL6T B; A=C &P--8 T6-7& ................................................................. 6A -D'6B6T >-54 ACC-&& =67T9AL C67C96T "A=C# P76C6N+ ........................................................................................ 65 -D'6B6T >-64 P76C6N+ 5.7 &;//-T76CAL CAPAC6T; B; T7A556C CLA&& AN8 A=A6LAB6L6T; B; PLAT5.7/ T-C'N.L.+; 5.7 ACC-&& =67T9AL C67C96T& "A=C# .................................................................................. 66 -D'6B6T >-:4 N-T(.7B T. N-T(.7B 6NT-75AC- "NN6# P76C6N+ ....................................................................... 66 -D'6B6T >->4 5.7-CA&T A=C P76C6N+ 8-CL6N- P7.56L- "N./6NAL 8.LLA7&# ................................................... 6: -D'6B6T >-@4 5.7-CA&T C=C P76C6N+ 8-CL6N- P7.56L- "N./6NAL 8.LLA7&# ................................................... 6: -D'6B6T >-104 5.7-CA&T 56D-8 (67-L-&& AN8 &AT-LL6T- 7-=-N9-& "F /6LL6.N# "N./6NAL 8.LLA7&# ......... 6> -D'6B6T >-114 A7P9 "F G /T'# .............................................................................................................................. 6@ -D'6B6T @-14 &-L-CT-8 5.7-CA&T& AN8 P7.<-CT6.N& 5.7 T'- 56B7- N-T(.7B C.N&T79CT6.N P-76.8 "5;2011 E 5;2021# ....................................................................................................................................... :1 -D'6B6T @-24 5.7-CA&T &9//A7; 56NANC6AL& "N./6NAL 8.LLA7&# ............................................................... :2 -D'6B6T @-?4 /.=6N+ 57./ T'- 2011-1? C.7P.7AT- PLAN T. T'- 2012-15 C.7P.7ATPLAN ................... :2 -D'6B6T @-A4 5.7-CA&T B-; 56NANC6AL 6N86CAT.7& 5.7 2011-1? C.7P.7AT- PLAN =&. 2012-15 C.7P.7AT- PLAN "N./6NAL 8.LLA7&#.......................................................................................................................... :?
6 August 2012
NBN Co. Ltd.

-D'6B6T @-54 B-; 8655-7-NC-& B-T(--N 2012-15 C.7P.7AT- PLAN AN8 2011-1? C.7P.7AT- PLAN ........... :A -D'6B6T @-64 5.7-CA&T P7-/6&-& PA&&-8 AN8 C.NN-CT-8 B; 5;2021 ........................................................... :5 -D'6B6T @-:4 5.7-CA&T CAP6TAL -DP-N86T97- "F /6LL6.N# "N./6NAL 8.LLA7&# ............................................ :5 -D'6B6T @->4 5.7-CA&T .P-7AT6N+ -DP-N86T97- "F /6LL6.N# "N./6NAL 8.LLA7&# ...................................... :: -D'6B6T @-@4 NBN C.1& 5.7-CA&T 9NL-=-7-8 59N86N+ 7-C967-/-NT "F B6LL6.N# "N./6NAL 8.LLA7&# .... :@ -D'6B6T @-104 NBN C.1& 5.7-CA&T 59N86N+ P7.56L- "8-BT AN8 -C96T;# T. 5;202> "F B6LL6.N# ................. >0 -D'6B6T @-114 NBN C.1& 5.7-CA&T -C96T; 59N86N+ 7-C967-/-NT "F /6LL6.N# "N./6NAL 8.LLA7&#J ...... >1 -D'6B6T 10-14 -NT-7P76&- 76&B /ANA+-/-NT &;&T-/ .................................................................................... >?
6 August 2012
NBN Co. Ltd.
1 E%EC&'I(E S&MMA)*
1+1 Introduction to the 2012811 Cor"orate -lan This Corporate Plan "2012811 Cor"orate -lan or the -lan# sets out the 0e obKecti,es and priorities $or NBN Co Li!ited "NBN Co# $or the ? ears $ro! 1 <ul % 2012 to ?0 <une% 2015. The 2012-15 Corporate Plan has been prepared in accordance *ith the re)uire!ents o$ the Commonwealth Authorities and Companies Act 1997 (Cth) and Commonwealth Government usiness !nterprise Governance and "versight Guidelines ".ctober 2011#. NBN Co sub!itted an initial Corporate Plan to the shareholder !inisters responsible $or NBN Co "Shareholder Ministers# on 1: 8ece!ber 2010 $or the $inancial ears 2011 E 201? "the 2011810 Cor"orate -lan#. The 2012-15 Corporate Plan no* supersedes the initial 2011-1? Corporate Plan. The 2012-15 Corporate Plan reports on4 NBN statusL Co1s current
NBN Co1s current organisation ai!ed at addressing the challenge o$ large-scale rollout o$ the National Broadband Net*or0 "NBN#L 7egulator issues and polic regulator $ra!e*or0L decisions $ollo*ing changes to the legislati,e and
8eplo !ent $orecasts $or the period 5;2012 E 5;2015L &peci$ic assu!ptions concerning the rollout in relation to Ne* 8e,elop!ents% Custo!er Connection% /ulti-8*elling cabling and net*or0 design trade-o$$sL /ar0et and product de,elop!ents% *ith e2pected conse)uences on 7e,enuesL and 5inancial per$or!ance re)uire!ents. indicators and $unding
The 2012-15 Corporate Plan incorporates the $inancial i!pact o$ the de$initi,e agree!ents bet*een Telstra Corporation Li!ited "'elstra# and NBN Co "'elstra $e9initi:e Agree!ents# and the agree!ent bet*een &ingtel .ptus Pt Ltd and other .ptus entities "."tus# and NBN Co "."tus ;FC Agree!ent#% both e2ecuted on 2? <une 2011. The Telstra 8e$initi,e Agree!ents supersede the $inancial heads o$ agree!ent that NBN Co entered into *ith Telstra on 20 <une 2010 "Financial ;eads o9 Agree!ent#% *hich *as a precursor to the Telstra 8e$initi,e Agree!ents and *hich *as re$lected in the 2011-1? Corporate Plan. All conditions precedent to the Telstra 8e$initi,e Agree!ents ha,e no* been satis$ied and the Telstra 8e$initi,e Agree!ents beca!e *holl unconditional on : /arch 2012. The .ptus '5C Agree!ent *as entered into a$ter the 2011-1? Corporate Plan and the $inancial i!pact *as there$ore not included in that plan. .n 1@ <ul 2012% the ACCC
published a $inal deter!ination granting authorisation o$ the .ptus '5C Agree!ent. All conditions precedent to the .ptus '5C Agree!ent ha,e no* been satis$ied and the agree!ent is *holl unconditional.
6 August 2012
NBN Co. Ltd. 1+2 Su!!ar# .<=ecti:es
NBN Co1s pri!ar obKecti,es in the ears leading to ?0 <une 2015 *ill be to4 Co!pl *ith the &tate!ent o$ -2pectations "S.E# pro,ided b the &hareholder /inistersL /eet the $inancial $orecasts set out in &ection @% #inancial #orecastsL and 8eli,er on the $ollo*ing outco!es4 o Co!plete the Transit net*or0 in 5;2015 "being the deplo !ent o$ 8ar0 5ibre connecti,it % 121 Points o$ 6nterconnect "-oIs# and !ore than 650 5ibre Access Nodes "FANs#L the re!aining 5ANs% being esti!ated at !ore than A00% to be built o,er the 5;2016 E 5;2021 period#L o 6!ple!ent the Telstra 8e$initi,e Agree!entsL o 6!ple!ent the .ptus '5C Agree!entL o Achie,e the pre!ises passed and connected $orecasts set out in &ection 5.1% "verview. This includes an obKecti,e o$ Construction Co!!enced or Co!pleted $or appro2i!atel :5>%000 5ibre pre!ises b ?1 8ece!ber 2012% in line *ith NBN Co1s I12 !onth 5ibre 7ollout 1 &chedule1 and an obKecti,e o$ Construction Co!!enced or Co!pleted $or appro2i!atel ?.5 !illion 5ibre pre!ises b ?0 <une 2015% in line *ith NBN Co1s I? ear 5ibre 2 7ollout Plan1 L o o Launch t*o satellites *ith co!!ercial operations starting in !id-2015L and 7ollout the 5i2ed (ireless net*or0 to pro,ide access ser,ices in regions not co,ered b NBN Co1s &atellite and 5ibre net*or0s.
1 2
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6 August 2012
NBN Co. Ltd. 1+0 2012811 ;ighlights Cor"orate -lan
The 2012-15 Corporate Plan incorporates the i!pact o$ changes and de,elop!ents in the deli,er o$ the National Broadband Net*or0 since the 2011-1? Corporate Plan. The Plan also re$lects the e2perience 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 '5C Agree!ent in the scope o$ the $orecasts% NBN Co1s underl ing 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!inal ter!sL The 6nternal 7ate o$ 7eturn "I))# re!ains abo,e :N per annu!L Total $orecast Capital -2penditure to end o$ the 5ibre Construction period increased b ?.@NL Construction Co!!enced or Co!pleted $or appro2i!atel pre!ises b 8ece!ber 2012L and :5>%000 5ibre
5ibre Construction period e2tended b 6 !onths despite @ !onth dela in Co!!ence!ent 8ate. The $orecasts in the 2012-15 Corporate Plan are in$or!ed b contracts e2ecuted $or the 5ibre% 5i2ed (ireless% &atellite and Transit net*or0 rollouts% including construction and e)uip!ent contracts. The 2012-15 Corporate Plan $orecasts a net increase in Capital -2penditure and .perating -2penditure during the 5ibre net*or0 Construction period to 5;2021% due to4 The inclusion o$ the .ptus '5C Agree!ent in the scope o$ the $orecasts is proKected to deli,er additional -nd-9sers and 7e,enues to NBN CoL The introduction o$ anticipated technolog upgrades $or both 5i2ed (ireless and Long Ter! &atellite &er,ice "L'SS# -nd-9sers in rural and re!ote AustraliaL The i!ple!entation o$ the +o,ern!ent1s Ne* 8e,elop!ents polic % the i!plications o$ *hich *ere onl partiall understood at the ti!e o$ the 2011-1? Corporate PlanL and The !o,e b NBN Co to use a !ore e$$icient IBuild 8rop1 !ethod $or custo!er connections$ These changes ha,e long ter! bene$its $or the i!ple!entation o$ the +o,ern!ent1s broad obKecti,es $or the National Broadband Net*or0 as *ell as $or NBN Co1s business
case. The higher le,el o$ connections and re,enues be ond 5;2021 results in higher proKected cash $lo*s% *hich increase the $orecast return "677# $ro! :N to :.1N o,er the ?0 ear period used $or the NBN Co $inancial !odel "$ro! 1 <ul 2010 to ?0 <une 20A0#.
6 August 2012
NBN Co. Ltd. The $inancial highlights $ro! the 2012-15 Corporate Plan are su!!arised in -2hibit 1-1. !%hi&it 1'1( Comparison o) *+11'1, Corporate -lan vs$ *+1*'1. Corporate -lan )or the #i&re /etwor0 Construction -eriod (1 illion) (/ominal 2ollars) Ma=or Assu!"tions and Forecast Financial Metrics Forecast )eturn
>00 #ear &nle:ered I))?
2011810 Cor"orate -lan :.0N
2012811 Cor"orate -lan :.1N
Change
H0.1N
Ca"ital E@"enditure
>to End Construction?
F?5.@ billion
"to 8ec120#
F?:.A billion
"to <un121#
HF1.A billion
)e:enue s
>to F*2021?
F2?.: billion
F2?.1 billion
F"0.6# billion
."erating E@"enditure
>to F*2021?
F2?.2 billion
F26.A billion
HF?.2 billion
&ource4 NBN Co Note4 6774 6nternal 7ate o$ 7eturn. All nu!bers rounded to 1 deci!al point.
1+2
Mo:ing 9ro! the 2011810 Cor"orate -lan to 2012811 Cor"orate -lan
The 2012-15 Corporate Plan incorporates the $ollo*ing !aKor changes *hen co!pared to the 20111? Corporate Plan4 A. Changes in the scope o$ the o,erall proKect resulting $ro!4 o The inclusion o$ the .ptus '5C Agree!ent in the Corporate Plan $orecastsL and o The latest assess!ent o$ 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 <une 2011L the i!pact o$ the 121 se!i-distributed Points o$ 6nterconnect "-oIs# decisionL and the re)uire!ent $or NBN Co to rollout the 5ibre net*or0 in all the current Telstra ? Band 1 and Band 2 copper e2changes.
B. .ther changes since the 2011-1? Corporate Plan resulting $ro!4 o The i!pact o$ the dela ed Co!!ence!ent 8ate o$ the Telstra 8e$initi,e Agree!ents% *hich has led to a corresponding dela in the start o$ the ,olu!e rolloutL 7educed Capital -2penditure and increased .perating -2penditure as a result o$ !ore in$rastructure being accessed under the Telstra 8e$initi,e Agree!entsL and
-2change bands are based on the nu!ber o$ ser,ices in operation per s)uare 0ilo!etre and are used b the ACCC in the price deter!inations $or declared $i2ed access ser,ices such as 9nbundled Local Loop "&LL#. http4GG*** .accc.go,.auGcontentGinde2.pht!lGite!6dG>5?51:.
10
6 August 2012
NBN Co. Ltd. o Accelerated Capital -2penditure during the Construction period to 5;2021 as a result o$ adopting a IBuild 8rop1 strateg $or connecting pre!ises to the 5ibre net*or0.
The o,erall i!pact o$ the abo,e changes is su!!arised in -2hibit 1-24 !%hi&it 1'*( 3mpact o) Changes 4oving )rom *+11'1, to *+1*'1. Corporate -lan )or the #i&re /etwor0 Construction -eriod (1 illion) (/ominal 2ollars) '#"e o9 Changes Ca"ital Forecast E@"enditure
>to End Construction?
Forecast ."erating E@"enditur e

>to F*2021?
Forecas t )e:enue s >to

F*2021?
A+ Changes in Sco"e o9 the .:erall -ro=ect B+ .ther Changes
H F1.: billion
H F2.2 billion
H F2.0 billion
F"0.?# billion
H F1.1 billion
F"2.6# billion
'otal Changes
H F1.A billion
H F?.2 billion
F"0.6# billion
&ource4 NBN Co Note4 All nu!bers rounded to 1 deci!al point.
1+2+1 Changes Sco"e
in
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 -2penditure during the Construction period% an increase in .perating -2penditure to 5;2021% but ha,e also increased 7e,enues o,er the period to 5;2021 and be ond. The principal changes in scope include4 1. ."tus ;FC Agree!ent E The !o,e!ent o$ additional subscribers to the National Broadband Net*or0 under the .ptus '5C Agree!ent results in !igration pa !ents to .ptus and in increased connection costs during the 5ibre net*or0 Construction period. These up$ront increases in Capital -2penditure and .perating -2penditure are !ore than o$$set b additional 7e,enues proKected in later ears. 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 A.?% -olicy 2ecisions% and includeL -oints o9 Interconnect >-oIs? E 6t has no* beco!e clear that the operational and $inancial conse)uences o$ i!ple!enting the ACCC re)uire!ents $or a se!idistributed !odel o$ 121 initial Po6s "in application o$ the ACCC Ico!petition criteria1 $or Po6 locations# *ere underesti!ated in the 2011-1? Corporate Plan. New $e:elo"!ents E The cost o$ e2ecuting the +o,ern!ent1s polic $or connecting Ne* 8e,elop!ents "+reen$ields sites# has resulted in higher up$ront $inancial costs than $orecast in the 2011-1? Corporate Plan "see &ection 6.1.2% /ew 2evelopments 5tatus#.
2.
11
6 August 2012
NBN Co. Ltd. Batter# Bac u" E The 2011-1? Corporate Plan assu!ed that NBN Co *ould be re)uired to pro,ide Batter Bac0up to 100N o$ 5ibre -nd-9sers connections. 5ollo*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 Bac0up. Priorit Assistance households *ill be pro,ided *ith a Batter Bac0up. 6t is no* assu!ed that 50N o$ 5ibre -nd-9sers *ill elect not to ha,e Batter Bac0up% *ith a conse)uent reduction in Capital -2penditure. Fi@ed 4ireless and Long 'er! Satellite Antici"ated 'echnolog# &"grades E The 2012-15 Corporate Plan includes additional Capital -2penditure associated *ith NBN Co pro,isioning $or anticipated technolog upgrades on both the 5i2ed (ireless and Long Ter! &atellite ser,ices $or rural and re!ote Australia. .ther -olic# Issues E The 2012-15 Corporate Plan re$lects assu!ptions $or the i!ple!entation o$ other polic decisions being the 5ibre net*or0 $ull co,erage o$ Band 1 and Band 2% Public 6n$or!ation on /igration "-IM#% 9&. Pa phones% Public 6nterest Pre!ises "-I-s# and T9&/A Le, . 1+2+2 .ther Changes A$ter ta0ing into account the changes in scope outlined in &ection 1.A.1% Changes in 5cope6 the 201215 Corporate Plan re$lects a decrease in Capital -2penditure during the Construction period% an increase in .perating -2penditure to 5;2021 and a reduction in 7e,enues to 5;2021 co!pared *ith the 2011-1? Corporate Plan. (hilst there ha,e been changes in !an o$ the underl ing assu!ptions% the net changes in Capital -2penditure% .perating -2penditure 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 $ro! <ul 2011#. As a result o$ the dela o$ the Co!!ence!ent 8ate o$ the Telstra 8e$initi,e Agree!ent $ro! <une 2011 to /arch 2012 there *as a corresponding dela in the co!!ence!ent o$ the ,olu!e rollout. The deplo !ent ti!e$ra!e $or the 5ibre net*or0 has been e2tended b 6 !onths and is no* $orecast to be co!pleted b <une 2021. This !o,e!ent is illustrated in -2hibit 1-?. rown)ield -remises -assed etween
!%hi&it 1',( Comparison o) Corporate -lans

-re!ises >A000s?
12%000 10%000 >%000 6%000
Brown9ield -re!ises -assed -ro9ile >In 'housands?
I!"act o9 the 6 !onth dela# in Co!!ence!ent $ate
A%000 2%000 0 5;2011 5;2012 5;201? 5;201A 5;2015 5;2016 5;201: 5;201> 5;201@ 5;2020 5;2021
2012 -15 CP
2011 - 1? CP
2011 - 1? CP @ !onth dela
&ource4 NBN Co
12
6 August 2012
NBN Co. Ltd. A. Increased 'elstra In9rastructure E 9nder the Telstra 8e$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 8ar0 5ibre and e2change space. This has resulted in higher .perating -2penditure in the period to 5;2021 and be ond% o$$set b lo*er Capital -2penditure. Accelerated Custo!er Connect costs E NBN Co is planning to use a predo!inantl IBuild 8rop1 strateg % in contrast to the I8e!and 8rop1 approach detailed in the 2011-1? Corporate Plan as $urther detailed in &ection 6.2.?% Customer Connect. The IBuild 8rop1 strateg is e2pected to be !ore cost e$$ecti,e in the long run than per$or!ing I8e!and 8rops1% particularl in the conte2t o$ the agree!ent *ith Telstra to disconnect its copper net*or0. The i!pact o$ the IBuild 8rop1 approach has been to accelerate Capital -2penditure into the period to 5;2021% although o,erall it is e2pected to be bene$icial to NBN Co due to increased e$$iciencies. 6n !o,ing $ro! the 2011-1? Corporate Plan to the 2012-15 Corporate Plan NBN Co has anal sed each o$ the other 0e areas o$ the business to deter!ine *hether the original underl ing assu!ptions continue to be ,alid "and there$ore rein$orced# or *hether% o,er the elapsed ti!e% there ha,e been !aterial changes that need to be addressed and re!odelled in the 2012-15 Corporate Plan. .,erall% the net e$$ect o$ these positi,es and negati,es ha,e appro2i!atel balanced out% !eaning that% e2cept as noted in ite!s 1 to 5 abo,e "&ections 1.A.1% Changes in 5cope O 1.A.2% "ther Changes#% the business case re!ains consistent *ith the 2011-1? Corporate Plan4 'a e8&" E The 2012-15 Corporate Plan assu!es ta0e-up le,els in the 5ibre net*or0 are broadl consistent *ith those in the 2011-1? Corporate Plan% ta0ing account o$ the re,ised deplo !ent ti!e$ra!e and the .ptus '5C Agree!ent noted in ite!s 1 and ? abo,e "&ections 1.A.1% Changes in 5cope O 1.A.2% "ther Changes#. )e:enues E /ar0et data since the publication o$ the 2011-1? Corporate Plan pro,ides support $or the original assu!ptions on speed and data usage% as *ell as NBN Co1s 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 6ncreases in so!e Capital -2penditure ite!s% other than those noted abo,e in ite!s 1-5 "&ections 1.A.1% Changes in 5cope O 1.A.2% "ther Changes#% ha,e been o$$set b sa,ings in other areas. (hilst this is not an e2hausti,e list% the !ain ,ariations in capital costs re$lected in the 2012-15 Corporate Plan include4 o Networ $istances E NBN Co has increased assu!ptions $or net*or0 distances based on the latest a,ailable planning in$or!ation% *hich is considered !ore accurate than pre,ious e2ternal data on *hich NBN Co had to rel at the ti!e o$ the 2011-1? Corporate Plan. o EBui"!ent Costs E -)uip!ent costs are lo*er than originall esti!ated due to architectural opti!isation and ,olu!e G price arrange!ents *hich NBN Co has negotiated since the 2011-1? Corporate Plan. o Construction La<our Costs E Construction labour costs are higher than originall $orecast% based on4 NBN Co1s e2perience $ro! the initial deplo !ent sites% construction contracts entered into and NBN Co1s latest planning acti,ities.
5.
1?
6 August 2012
NBN Co. Ltd. o Multi"le $welling &nits >M$&s? E NBN Co1s e2perience in initial deplo !ent sites has highlighted the challenges $or connecting pre!ises in /89s and additional costs ha,e there$ore been e!bedded in the 2012-15 Corporate Plan. o I' S#ste!s E Additional costs ha,e been incorporated into the 2012-15 Corporate Plan $or 6T s ste!s costs and additional costs $or Acti,e Net*or0 7eleases "AN)s#. o Fi@ed 4ireless and Satellite E The costs o$ deplo ing the NBN in the 5i2ed (ireless and &atellite $ootprint are lo*er than anticipated in the 2011-1? Corporate Plan as a result o$ $urther net*or0 planning and design. ."erating E@"enditure E The 2012-15 Corporate Plan includes cost sa,ings in a nu!ber o$ areas and increased costs in other areas. .ther than noted abo,e in ite!s 1-5 "&ections 1.A.1% Changes in 5cope O 1.A.2% "ther Changes# the net e$$ect o$ these changes has had a li!ited $inancial e$$ect on a cu!ulati,e basis. &igni$icant changes in .perating -2penditure assu!ptions include4 o Additional resources in the areas o$ Construction contract !anage!entL Co!!unit engage!ent G -nd-9ser interaction processesL 6T /anage!ent "particularl % align!ent o$ databases and s ste!s bet*een% $or e2a!ple% Telstra% construction deli,er partners and NBN Co#L Telstra interactionsL and general o,erhead "in relation to /edia% 5reedo! o$ 6n$or!ation "FoI# acti,ities% responses to Parlia!entar Co!!ittees#. &a,ings in .perating -2penditure relating to -nd-9ser !igrations% as a result o$ the Telstra 8e$initi,e Agree!ents and the .ptus '5C Agree!ents. 7educed .perating -2penditure in the 5i2ed (ireless and &atellite net*or0s as a result o$ $urther net*or0 planning and design. Su!!ar# o9 5e# Cor"orate -lan Assu!"tions
o 1+1
The 0e assu!ptions e!bedded in the 2012-15 Corporate Plan are sho*n in -2hibit 1A% *hich pro,ides a co!parison *ith the corresponding assu!ptions used in the 2011-1? Corporate Plan. !%hi&it 1'7( Comparison o) 8ey Assumptions in the *+1*'1. Corporate -lan to the *+11'1, Corporate -lan
5e# Assu!"tions -eriod Co:ered <# -lan 2011810 Cor"orate -lan 5;2011 E 5;201? 2012811 Cor"orate -lan 5;2012 E 5;2015
'elstra $eal Sco"e Agree!ent
Telstra 5inancial 'eads o$ "<une 2010#
Telstra 8e$initi,e Agree!ents "<une 2011# .ptus '5C Agree!ent "<une 2011#
."tus $eal Sco"e
Not included Plan assu!ed no .ptus '5C subscribers !igrate
1A
6 August 2012
NBN Co. Ltd.
5e# Assu!"tions
2011810 Cor"orate -lan
2012811 Cor"orate -lan Bno*n i!pact to date o$ Po6 decision Bno*n i!pact to date o$ +reen$ields obligations Batter Bac0up I/ust .pt1 *ith an assu!ed 50N ta0e-up Anticipated technolog upgrades o$ 5i2ed (ireless O Long Ter! &atellite net*or0s 5ibre net*or0 5ull Co,erage o$ Band 1 O 2 Public 6n$or!ation on /igration "P6/# 9&. Pa phones Public 6nterest Pre!ises "P6Ps# T9&/A Le,
-olic# $ecisions C S.E )eBuire!ent Preli!inar assess!ent o$ Points o$ 6nterconnect "-oI# decision Preli!inar assess!ent o$ +reen$ields obligations Batter Bac0up to 100N o$ connected 5ibre -nd-9sers
-re!ises -assedCCo:ered -nd o$ 5ibre Net*or0 Construction Period Total Nu!ber o$ 5ibre Pre!ises Passed "5;2021# Nu!ber o$ 5i2ed (ireless and &atellite Pre!ises Co,ered "5;2021# -re!ises Connected -nd o$ Telstra "P&AA# 8isconnections -nd o$ .ptus '5C &ubscribers /igration Total Nu!ber o$ 5ibre Pre!ises Connected "5;2021# Nu!ber o$ 5i2ed (ireless and &atellite Pre!ises Connected "5;2021# 5e# Ca"ital E@"enditure $ri:ers Co,ered 7oad 8istance +P.N Ph sical 8istance Aerial "N o$ pre!ises# - Local Net*or0 - 8istribution Net*or0 - Transit Net*or0 -2ternal Net*or0 Ter!ination 8e,ices "N'$s# Net*or0 Architecture
A
8ece!ber 2020
<une 2021
12.2 !illion
12.2 !illion
1.0 !illion
1.0 !illion
5;2022 N.A.
5;202? 5;2020
>.? !illion
>.5 !illion
0.2 !illion
0.2 !illion
1?0%000 0!s 1>1%000 0!s
1A>%000 0!s 206%000 0!s
25 N 0N 0N 50N
25N 0N 0N
NilP
IT pe 11 I8e!and 8rop1
IT pe 21 IBuild 8rop1
Custo!er Connections /odel

&ource4 NBN Co
Note4 P The 2012-15 Plan assu!es 100N 6nternal NT8s.
7e$er &ection 6.2.2% #i&re /etwor06 $or $urther details.
15
6 August 2012
NBN Co. Ltd. The $inancial $orecasts o$ the Plan can be su!!arised in the $ollo*ing si!pli$ied pro$it and loss accounts and applications and sources o$ $unds $or the periods to 5;2015 and to 5;2021% respecti,el . !%hi&it 1'.( -ro)it and 9oss (Cumulative6 1 2ollars) To the -nd o$ the Corporate Plan "<ul 2010 to <une 2015# -ro9it D Loss >Cu!ulati:e3 /ul# to /une 2011? "Cu!ulati,e F Billion E2010 No!inal 8ollars#
Total .perating -2penses Cu!ulati:e EBI'$A >E<n? 6.6 Total 7e,enues >6+0?
illion) (/ominal To the -nd o$ the 5ibre Net*or0 Construction Period in <une 2021 -ro9it D Loss >Cu!ulati:e3 /ul# to /une 8ollars# 2021? "Cu!ulati,e F Billion E 2010 No!inal
Total .perating -2penses Cu!ulati:e EBI'$A >E<n? 26.A Total 7e,enues >0+0? >E<n? 2?.1
>E<n? 0.:
&ource4 NBN Co Note4 5or the table To the -nd o$ the Corporate Plan4 ter! is $or 5 ears. The co!parable table in the 2010-1? Corporate Plan *as $or ? ears.
!%hi&it 1'6( #unding 5ummary (Cumulative6 1 illion) (/ominal 2ollars) To the -nd o$ the Corporate Plan "<ul To the -nd o$ the 5ibre Net*or0 Construction 2010 to Period <une 2015# in <une 2021 Funding Su!!ar# >Cu!ulati:e3 /ul# 2010 to /une 2021? Funding Su!!ar# >Cu!ulati:e3 /ul# 2010 to /une 2011? "Cu!ulati,e F Billion E No!inal 8ollars# "Cu!ulati,e F Billion E No!inal 8ollars#
5;2010 Cash 5lo* >E<n? 0.1 -)uit 8ebt >E<n? 20.? 0.5 5;2010 Cash 5lo* Cu!ulati,e -B6T8A (:uly *+1+ to :une *+*1) Total Cape2 >E<n? 0.1 -)uit ?.? 8ebt >E<n? ?0.A 1?.:
Cu!ulati,e -B6T8A 6.0 (:uly *+1+ to :une *+1.) Total Cape2 (or0ing Capital /o,e!ents "1.1# 8istributions to -)uit Net 8ebt 5unding Costs "0.?# Ta2 Cash at Ban0 'otal A""lications 1?.5
?:.A
2.6 20+7
(or0ing Capital /o,e!ents 0.1 8istributions to -)uit Net 8ebt 5unding Costs 2.6 Ta2 Cash at Ban0 0.6 'otal Sources 20+7 'otal A""lications 22+1 'otal Sources 22+1
&ource4 NBN Co Note4 5or the table To the -nd o$ the Corporate Plan4 ter! is $or 5 ears. The co!parable table in the 2010-1? Corporate Plan *as $or ? ears. 8istributions to -)uit 4 the Corporate Plan e!beds an assu!ption o$ debt-raising% *hich i$ success$ul *ill pro,ide a !echanis! to distribute surplus cash and repa e)uit o,er ti!e a$ter the end o$ the 5ibre net*or0 Construction period. 8ebt 5unding4 it has been assu!ed that pea0 8ebt 5unding e)ui,alent to ?1N o$ total $unding re)uired o,er the period 5;2011-5;2021 *ould be raisedL i$ actual debt raised at the ti!e *as lo*er than proKected% then -)uit 5unding b +o,ern!ent *ould need to be increased. Net 8ebt 5unding Costs4 de$ined as gross debt $unding costs% less interest earned.
16
6 August 2012
NBN Co. Ltd.
2 -)./EC' &-$A'E
2+1 'elstra Agree!ents and
S'A'&S
."tus
NBN Co and Telstra announced on 2? <une 2011 that binding agree!ents had been entered into% subKect to ,arious conditions precedent "including Telstra &hareholder appro,al% regulator % and other appro,als#. The Telstra 8e$initi,e Agree!ents are based on the $ra!e*or0 pro,ided b the <une 2010 5inancial 'eads o$ Agree!ent. The Telstra 8e$initi,e Agree!ents pro,ide NBN Co access to certain Telstra $acilities co!prising ducts% pits% lead-in conduits "o*nership o$ *hich trans$ers to NBN Co#% e2change space and 8ar0 5ibre to $acilitate the e$$icient rollout o$ the NBN. The Telstra 8e$initi,e Agree!ents also re)uire Telstra to progressi,el disconnect pre!ises $ro! Telstra1s copper and ' brid 5ibre Coa2ial ";FC# net*or0s "e2cept $or certain pa -T= ser,ices o,er the '5C net*or0s#. All conditions precedent to the Telstra 8e$initi,e Agree!ents ha,e been !et% *ith Co!!ence!ent occurring on : /arch 2012% and the 2012-15 Corporate Plan builds in the i!pact o$ these agree!ents. .n 2? <une 2011% NBN Co e2ecuted an agree!ent *ith &ingTel .ptus Pt Ltd and other .ptus entities "."tus# "the I."tus ;FC Agree!ent1# to progressi,el !igrate .ptus '5C subscribers to the NBN as it is rolled out. NBN Co has agreed to !a0e progressi,e pa !ents to .ptus% based on the nu!ber o$ subscribers that !igrate $ro! its '5C net*or0. .n 1@ <ul 2012% the ACCC published a $inal deter!ination granting authorisation o$ the .ptus '5C Agree!ent. The .ptus '5C Agree!ent is no* unconditional. 2+2 Custo!ers As at ?0 <une 2012% A1 Access &ee0ers ha,e signed NBN Co1s (holesale Broadband Agree!ent "4BA#% constituting o,er @AN o$ the current $i2ed broadband 5 !ar0et. 6n addition% 12 Access &ee0ers ha,e signed NBN Co1s 6nteri! &atellite &er,ices Agree!ent and 16 Access &ee0ers ha,e signed the 5i2ed (ireless Trial Agree!ent. 6n &epte!ber 2011 NBN Co success$ull launched its $irst co!!ercial $ibre-based ser,ices o,er the National Broadband Net*or0. As at ?0 <une 2012 there *ere o,er 500 NBN-based retail plans in the !ar0et $ro! a range o$ 7etail &er,ice Pro,iders ")S-s#% *ith a hea, $ocus on the 25G5 /bps and 100GA0 /bps ser,ices.
@AN is an NBN Co calculation based on total !ar0et nu!ber o$ 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.
1:
6 August 2012
NBN Co. Ltd. 2+0 Networ $e"lo#!ent
-2hibit 2-1 pro,ides an o,er,ie* o$ NBN Co1s 5ibre access net*or0 and Transit co!ponents. !%hi&it *'1( 2iagram o) the ;ransit and #i&re Access /etwor0s
5
Customer cti!e "#uipment $ %D&s

Premises
Lead-ins
Local Netw ork
Distribution Netw ork
Transit Network
)*Ps
erial Lead-+n C onduit
%PT
D( D%
'LT
%PT
Ducted ,ibre Pit Pit
Ducted ,ibre %an1oles
Ducted$ 2uried ,ibre
N etwork Premise Termination C onnection D e!ice.NTD0 D e!ice.PCD0
Ducted ,ibre &nder-round Lead-+n Conduit
& nder-round Local ,ibre N et work %ultiport
5 Premise e#uipment N et work Termination De!ice inst alled
5 (it1 t1e
2 Dist ribution Network to be mostl8 under-round
1 Transit N et work
Lead-ins could be aerial or Local Network could be aerial or under-roun6d7 Telstra Deal6 under-round N2 N Co is e9pectin- t1e ma:orit 8 to be under-round
&ource4 Co
NBN
2+0+1 'ransit Networ The Transit net*or0 is the bac0bone o$ the National Broadband Net*or0 and pro,ides connecti,it $or each o$ NBN Co1s three Access net*or0s "5ibre% 5i2ed (ireless and &atellite# to the Points o$ 6nterconnect "-oIs# *here 7etail &er,ice Pro,iders connect to the NBN Co net*or0. The Transit net*or0 includes planning $or three ele!ents4 8ar0 5ibre Lin0s% 5ibre Access Nodes and Aggregation Nodes "*here !ost Points o$ 6nterconnects *ill be located#. NBN Co *ill be using in$rastructure pro,ided b Telstra in the $or! o$ 8ar0 5ibre and 7ac0 &pace in e2change buildings% 8ar0 5ibre $ro! the 7egional Bac0haul Blac0spots Progra!!e ")BB-# and so!e ne* $acilities to build the Transit net*or0. The Transit net*or0 *ill use di,erse trans!ission paths $or the 8ar0 5ibre "deplo ed as trans!ission rings# to carr high capacit 8ense (a,elength 8i,ision /ultiple2ing "$4$M# optical signals $ro! the regional and re!ote locations to the Po6s. The Transit net*or0 proKect has been established in order to !anage the rollout o$ the net*or0 *ith Telstra and other parties o,er a period o$ A2 !onths co!!encing 1 August 2011. 8esign docu!ents $or the $irst $i,e rings o$ 8ar0 5ibre and all related Aggregation Nodes and 5ibre 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 Ber0le =ale area. 2+0+2 Fi<re Networ Access
Construction *or0 on NBN Co1s 5ibre access net*or0 began in <ul and August 2010% *hen NBN Co signed construction agree!ents $or the $i,e 5irst 7elease &ites "F)S# to trial design% construction and operational !ethodologies in di,erse geographical locations. As at ?0 <une 2011 net*or0 construction in all $i,e 57&% co!prising 1A%256 pre!ises% had been co!pleted. 6n April 2011% NBN Co announced Tas!ania &tage 2. As at ?0 <une 2012 the net*or0 construction *as co!pleted $or >%:A6 pre!ises in Triabunna% &orell% 8eloraine% +eorge To*n% &t 'elens and Bingston Beach "*ith the e2ception o$ &outh 'obart *hich *as rescheduled#.
D(D%
NTD
PCD
&nder-round Distribution Point
erial ,ibre N et work
.,D/0 ,ibre D istribution /ub
., N 0 ,ibre ccess Node
.Po+3 N0
P oint o4 +nter connect 3 --r e-ation Node
NBN Co has no* begun the ,olu!e construction o$ the 5ibre net*or0 *ith a $ocus on e$$icienc and cost e$$ecti,eness. NBN Co1s inaugural I12 !onth 5ibre 7ollout Plan1 *as published in .ctober 2011. Corporate Plan 2012-15 1> 6 August 2012
NBN Co. Ltd. .n 2@ /arch 2012% NBN Co released its $irst I? ear 5ibre 7ollout Plan1% *hich has an obKecti,e o$ Construction Co!!enced or Co!pleted $or appro2i!atel ?.5 !illion 5ibre pre!ises b ?0 <une 2015% across 1%500 co!!unities in e,er state and territor in Australia. To deter!ine the co!!unities that *ill recei,e access to the NBN Co1s 5ibre net*or0 o,er the ne2t ? ears% NBN Co $ollo*ed design principles that balanced the +o,ern!ent1s ai! o$ pro,iding the National Broadband Net*or0 to e,er Australian pre!ises and the need to *or0 e$$icientl and cost e$$ecti,el . These principles included $irst e2tending the net*or0 in areas *here *or0 has alread begunL balancing construction across states and territories and bet*een !etropolitan and regional locationsL and !a0ing use o$ a,ailable e2change and transit in$rastructure as it beco!es a,ailable $ro! Telstra. NBN Co has also prioritised gro*th corridors that are li0el to contain a high nu!ber o$ Ne* 8e,elop!ent "+reen$ield sites#. 6t also *ill prioritise lin0s to support the 5i2ed (ireless and &atellite net*or0s. 5inall % there is a need to spread construction contracts across geographies and pre,ent local co!!unit congestion. Construction o$ the 5ibre net*or0 is carried out on behal$ o$ NBN Co b a nu!ber o$ construction partners across the countr . NBN Co *ill progressi,el release *or0 pac0ages to selected construction partners in order to pro,ide su$$icient ,olu!es to enable construction partners to scale their acti,ities% and to pro,ide a balance o$ *or0 across the countr and bet*een the construction co!panies. At the date o$ the 2012-15 Corporate Plan NBN Co has released $our *or0 pac0ages $or construction o$ the 5ibre net*or04 4or -ac age 1 E "<ul 2011# 6ncludes *or0 in Cueensland% Ne* &outh (ales and the ACT "&ilcar#. The ,alue o$ construction under the contract is esti!ated at appro2i!atel F?>0 !illion o,er the $irst 2 ears% *ith the option o$ a $urther 2 ears at an additional ,alue o$ F:A0 !illion. 4or -ac age 2 E "&epte!ber 2011# 6ncludes *or0 in =ictoria "Trans$ield &er,ices# and (estern Australia "& ntheo#. The total $inancial co!!it!ent o$ NBN Co under the Trans$ield &er,ices agree!ent is esti!ated at appro2i!atel F1?? !illion o,er the $irst 2 ears and an additional F262 !illion $or ears ? and A. The total $inancial co!!it!ent o$ NBN Co under the & ntheo agree!ent is esti!ated at appro2i!atel F1:A !illion o,er the $irst 2 ears and an additional F?10 !illion $or ears ? and A. 4or -ac age 0 E "No,e!ber 2011# 6ncludes *or0 in &outh Australia and Northern Territor "& ntheo#. The total $inancial co!!it!ent o$ NBN Co under the & ntheo agree!ent is esti!ated at appro2i!atel F1A1 !illion o,er the $irst 2 ears and an additional F200 !illion $or ears ? and A. 4or -ac age 2 E "/arch 2012# Co,ers the re!aining pre!ises in Tas!ania "=isionstrea!#. The total $inancial co!!it!ent o$ NBN Co under the =isionstrea! agree!ents $or (or0 Pac0age A is esti!ated at appro2i!atel F?00 !illion. &i!ilar to (or0 Pac0ages 1 to ?% (or0 Pac0age A includes an agree!ent $or detailed design and construction acti,ities. 'o*e,er% it also includes
agree!ents $or ongoing net*or0 aug!entation% !aintenance and $ield ser,ices. The Corporate Plan 2012-15 1@ 6 August 2012
NBN Co. Ltd. agree!ents are $or an initial A 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$ e2tending (or0 Pac0age Contracts 1 to ? to include IBuild 8rops1 "installing Pre!ises Connection 8e,ices at the ti!e o$ the Local net*or0 construction#. NBN Co is also appointing contractors to per$or! on de!and acti,ations% net*or0 assurance and aug!entations. NBN Co *ill increase construction capacit in !ore densel populated regions through the release and a*ard o$ $urther construction *or0 pac0ages b the end o$ calendar 2012. 6n &epte!ber 2011% the trial ser,ice phase in the 5irst 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 <une 2012% NBN Co had Construction Co!!enced or Co!pleted $or appro2i!atel ?05%000 pre!ises. 2+0+0 Fi<re in New $e:elo"!ents >Green9ields Sites? (ithin the $irst )uarter o$ 2011% NBN Co began the building o$ a capabilit % including sta$$ing% legal instru!ents% s ste!s and processes% to enable de,elopers to lodge applications $or ser,ice in Ne* 8e,elop!ent estates. At ?0 <une 2012% NBN had recei,ed 2%5>@ applications $ro! de,elopers% co,ering appro2i!atel 1?2%000 lots. These lots are e2pected to beco!e pre!ises passed in the $uture% ho*e,er% occupanc le,els *ill depend on de,elopers1 ti!e$ra!e to build. 6n order to !eet the ser,ice deli,er re)uire!ents o$ the +o,ern!ent1s Ne* 8e,elop!ents polic % NBN Co has designed% tested and )uali$ied a Te!porar 5ibre Access Node "'8FAN# solution to !eet +reen$ields re)uire!ents prior to the deplo !ent o$ NBN Co1s Transit net*or0. As at ?0 <une 2012% a total o$ A2> Net*or0 8esign 8ocu!ents "N$$s# had been produced $or Ne* 8e,elop!ents *ith 10%05A lots passed. 2+0+2 Fi@ed Networ s 4ireless and Satellite
The 5i2ed (ireless and &atellite net*or0s *ill pro,ide high capacit ser,ices $or pre!ises be ond the 5ibre net*or0% ensuring that all Australian pre!ises ha,e access to high speed broadband ser,ices. 6n 5ebruar 2011% NBN Co ac)uired licenses to operate in the 2.? +'Q and ?.A +'Q spectru! bands $ro! A9&TA7. .n 1? <ul 2011% NBN Co ac)uired spectru! in (estern Australia% the Northern Territor % &outh Australia% outbac0 Cueensland and $ar *est Ne* &outh (ales at an auction run b the Australian Co!!unications and /edia Authorit "ACMA#. This increases the geographic co,erage NBN Co can achie,e $or its 5i2ed (ireless net*or0 b co!ple!enting the initial spectru! NBN Co purchased $ro! A9&TA7. .n 1 <une 2011% NBN Co signed a 10 !anaged ser,ices contract *ith -ricsson. ear 5i2ed (ireless e)uip!ent suppl and
The $irst ser,ices o,er NBN Co1s 5i2ed (ireless net*or0 co!!enced in April 2012. As at ?0 <une 2012% NBN Co had Construction Co!!enced or Co!pleted in (ireless &er,ing Areas "4SAs#
containing pre!ises.
appro2i!atel
15%000
NBN Co de,eloped an 6nteri! &atellite ser,ice "also re$erred to as the 5irst 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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6 August 2012
NBN Co. Ltd. e2pired on 1 <ul 2011# and NBN Co1s Long Ter! &atellite &er,ice "L'SS# "scheduled $or co!!ercial ser,ice in !id-2015#. To pro,ide &atellite capacit % NBN Co entered into a contract *ith .ptus in /a 2011 to pro,ide !anaged satellite ser,ices $or an initial 5 ear period. A second contract *as signed *ith 6P&tar $or additional &atellite capacit . NBN Co1s $irst co!!ercial &atellite ser,ices *ere launched on 1 <ul 2011 and had @%5:> users as at ?0 <une 2012. .n > 5ebruar 2012% NBN Co announced that &pace & ste!s G Loral "SSCL# had been selected to build t*o ne2t generation Ba-band satellites planned $or launch in 2015. The contract signed *as ,alued at appro2i!atel F620 !illion and $ollo*ed a co!prehensi,e 2 ear procure!ent process. 5ollo*ing this announce!ent% NBN Co also announced in the third )uarter 5;2012 that /eri!bula and Bour0e in N&( and +ee,eston in Tas!ania had been chosen as the $irst three sites $or the construction o$ &atellite ground $acilities. These $acilities are due to be operational b 2015. .n 12 <ul 2012 NBN Co announced the a*ard o$ a F2>0 !illion contract to =ia&at $or the !anu$acture and suppl o$ ground e)uip!ent and ser,ices $or the LT&&. .ther LT&& agree!ents to $ollo* *ill co,er $urther ground s ste!s and the launch capabilit . 2+2 I' S#ste!s 8uring the period since the 2011-1? Corporate Plan *as released NBN Co has underta0en signi$icant *or0 to stand up core $oundational 6T capabilities across the $our !ain deli,er progra!!es4 Business Su""ort S#ste!s >BSS? E The core -nterprise 7esource Planning & ste! "E)-# *hich included $inance% procure!ent% proKect% and port$olio !anage!ent capabilities *as deli,ered in <ul 2010. 5urther )uarterl releases ha,e deli,ered additional capabilities to support suppl chain% enterprise content !anage!ent% custo!er relationship !anage!ent% business intelligence anal tics% identit and access !anage!ent and s ste!s to support portal de,elop!ent% including the Telstra interaction !anage!ent s ste! and ne* propert de,elopers1 access portal. ."erational Su""ort S#ste!s ".SS# E The .&& contract *as signed in April 2011 and has seen all the core capabilities deli,ered to plan in under a ear. Core capabilities deli,ered to date include the &er,ice Portal% Billing% 5ul$il!ent and Assurance s ste!s and the Business to Business "B2B# gate*a . The B2B gate*a *as deli,ered in 5ebruar 2012% *ith the $irst $ull auto!ated order sent b an 7&P on 2? /a 2012. The i!ple!ented assurance s ste!s no* allo* 7&Ps to raise trouble tic0ets directl ,ia the &er,ice Portal and NBN Co Net*or0 .perations to !anage and report $aults in real-ti!e. Shared Securit# Ser:ices "SSS# E -stablishing the securit ser,ices plat$or!s that pro,ide controls that can be used to reduce ris0 related to NBN Co assets. 'elstra Interaction S#ste!s "'IS# E 6!ple!enting the capabilit re)uired to !anage the operational and co!!ercial agree!ents bet*een Telstra and NBN Co.
21
6 August 2012
NBN Co. Ltd. NBN Co has adopted a deli,er !odel based around groups o$ related s ste!s "-lat9or!s#. 6T de,elop!ent and support tea!s are aligned to these Plat$or!s. !%hi&it *'*( -lat)orm and Capa&ilities -lat9or! Ser:ice Manage!en t Ca"a<ilities Assurance E -,ent% Alar!% and &er,ice Per$or!ance /anage!ent% including abilit $or Access &ee0ers to raise $aults. Ful9il!ent E .rder /anage!ent% .rchestration% Product and &er,ice Catalogues. Ph sical Net*or0 6n,entor % Appoint!ent G (or0$orce /anage!ent and &uppl Chain /anage!ent% Net*or0 Planning O 8esign. 6nternet% intranet% and e2tranet capabilities% including portals and B2B gate*a s% .nline Collaboration% C7/% Contact Centres% as *ell as 6ntegration and Process .rchestration. 5inance and accounting% hu!an capital !anage!ent% health and sa$et % proKect and port$olio !anage!ent% ris0 !anage!ent% billing% and re,enue !anage!ent.
)esource Manage!en t -ortals and .nline Ser:ices Business and Financial Manage!e nt Enter"rise In9or!ation Manage!e nt Securit# Manage!en t
&ource4 NBN Co
Business 6ntelligence and Anal tics% -nterprise Content /anage!ent% and /aster 8ata /anage!ent. 6dentit and Access /anage!ent% Peri!eter &ecurit % 8ata Protection% -ncr ption% Audit G Logging% &ecurit co!pliance% C-7T.
2+1 $esign o9 the Acti:e and -assi:e Networ s NBN Co has approached the challenge o$ designing and testing ne* releases o$ net*or0 capabilit using a phased approach. &tarting *ith the 5ibre access net*or0% NBN Co has created Ipac0ages1 o$ net*or0 capabilit that are designed and tested as integrated solutions at the National Test 5acilit "N'F# prior to deplo ing to the li,e net*or0. Progressi,el % the Net*or0 7eleases *ill deli,er the $ull range o$ NBN Co net*or0 capabilit across the 5ibre% 5i2ed (ireless% &atellite and Transit net*or0s. 7elease pac0ages speci$ic to the Acti,e Net*or0 are re$erred to as Acti,e Net*or0 7eleases "AN)s# and generall deli,er a range o$ product and operational business capabilities. Acti:e Networ )elease 1 >AN)1? *as initiall deplo ed to the 5irst 7elease trial sites in April 2011 and *as dee!ed operationall read $or co!!ercial ser,ices in &epte!ber 2011. AN71 deli,ered a range o$ $oundation product capabilit to support broadband data and ,oice and technolog enablers co,ering +P.N% La*$ul 6nterception and Aggregation. Acti:e Networ )elease 2 >AN)2? *as released $or net*or0 *ide deplo !ent in
<une 2012 "$ollo*ing testing and initial rollout deplo !ent in No,e!ber 2011# and introduces broadband data ser,ices in the 5i2ed (ireless co,erage areas and an Access &ee0er trial o$ /ulticast. This release enables Long Ter! -,olution "L'E# $or the 5i2ed (ireless net*or0 and 8ense (a,elength 8i,ision /ultiple2ing "$4$M# capabilit $or the Transit net*or0.
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6 August 2012
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*or0 7eleases "-N)s#. These deli,er a range o$ product and operational capabilities. -assi:e Networ )elease 1 >-N)1? *as released $or net*or0 *ide deplo !ent in <une 2012 and deli,ers passi,e 5ibre access net*or0 architecture $ro! .ptical 8istribution 5ra!e ".$F# to pre!ises drop. 8esign Testing is underta0en on e,er Acti,e Net*or0 7elease and .&& G B&& release be$ore deplo !ent to the li,e net*or0. The testing in,ol,es con$iguring the necessar hard*are "net*or0 and s ste!s# and loading the necessar so$t*are into the NT5 s ste! integration $acilit and per$or!ing $ull end-to-end process and integration testing on the co!bined release in a con$iguration *hich closel si!ulates the li,e net*or0 and s ste!s. 2+6 Facilities 2+6+1 National Ser:ice ."erations and 'est Facilit# At the end o$ 2010% the construction started on the Net*or0 and &er,ice .perations Centre "NS.C#% incorporating the National Test 5acilit "N'F#% at 8oc0lands in /elbourne. This $acilit has been operational since <une 2011 and allo*s Access &ee0er certi$ication testing and Acti,e Net*or0 7elease "AN)# testing to be underta0en. The NT5 at 8oc0lands also contains the 8isco,er Centre% *hich is a purpose-built de!onstration and education centre $or the education o$ the public on the technical and operational details o$ the NBN. The N&.C is the pri!ar operational inter$ace *ith NBN Co1s Access &ee0ers and other in$rastructure pro,iders. &er,ice Acti,ation Centres "SACs# ha,e been established in both & dne and /elbourne and support the connection o$ Access &ee0ers onto the NBN net*or0 and the acti,ation o$ their -nd-9sers. The three Tas!anian pre-release sites continue to be !anaged using the arrange!ents that *ere initiall established $or these trials. A strateg to align their operational !odel *ith the !ainland sites and &econd 7elease Tas!ania sites *ill be i!ple!ented in 2012G1?. 2+6+2 $ata Centres NBN Co entered into t*o short-ter! !anaged hosting agree!ents in 200@G10 to pro,ide 6T in$rastructure to support the rollout o$ 6T s ste!s and the corporate *ebsite. 6n <anuar and /arch 2011% t*o NBN Co !anaged data centre $acilities *ere established supporting all 6T in$rastructure needs% including the .&& G B&& rollouts. The i!ple!entation *as based upon leasing space and po*er *ithin e2isting third part $acilities in P r!ont "N&(# and &pring$ield "CL8#. There are no* o,er 2%000 ser,ers and 500 databases running in these $acilities to support NBN Co s ste!s. The ,irtualisation and auto!ation technologies used ha,e supported the rapid gro*th re)uired o$ the .&& G B&& capabilities. The !igration o$ the e2ternal s ste!s run b !anaged host pro,iders into the NBN Co 8ata Centres *ere co!pleted b 8ece!ber 2011 and resulted in signi$icant ongoing cost sa,ings.
2?
6 August 2012
NBN Co. Ltd. 2+, )egulator# and -olic# $ecisions &"date &ince the release o$ the 2011-1? Corporate Plan% the /ational road&and /etwor0 Companies Act *+11 and the ;elecommunications 9egislation Amendment (/ational road&and /etwor0 4easures < Access Arrangements) Act *+11 ha,e been passed% establishing4 The go,ernance% o*nership and operating arrange!ents $or NBN CoL and The regi!e to $acilitate open access to the *holesale-onl ser,ice pro,iders. NBN $or do*nstrea!
This legislation builds on the re$or!s i!ple!ented b the ;elecommunications 9egislation Amendment (Competition and Consumer 5a)eguards) Act *+1+% including the $ra!e*or0 $or Telstra1s ,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 Co1s role 6 in Ne* 8e,elop!ents. The ;elecommunications 9egislation Amendment (#i&re 2eployment) Act *+11 speci$ies NBN Co1s 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 leadin in$rastructure "I5ibre-7ead 5acilities1# are pro,ided b de,elopers to NBN Co. -u<lic 4or s Co!!ittee An e2e!ption $ro! the -u&lic =or0s Committee Act 1969 has been pro,ided in the /ational road&and /etwor0 Companies Act *+11. Authorisations reBuired 9or i!"le!entation &ubKect to certain conditions being !et% pro,isions in the ;elecommunications 9egislation Amendment (/ational road&and /etwor0 4easures < Access Arrangements Act *+11) are intended to authorise conduct o$ NBN corporations under Parts 6=% D6B and D6C o$ the Competition and Consumer Act *+1+ in relation to interconnection% bundling o$ ser,ices and cross-subsidisation% in order to pro!ote the national interest in structural re$or! o$ the teleco!!unications industr and to pro!ote uni$or! national *holesale pricing o$ NBN ser,ices. 2+7 Local Content Local content is acti,el pro!oted as part o$ NBN Co procure!ent processes. Certain contracts are inherentl local such as construction and net*or0 operations. 5or other contracts% NBN Co has sought to !a2i!ise the local content% particularl *here local !anu$acturers are alread established. Local content *as 51N o$ contract ,alue as at ?0 <une 2012. 5urther $uture Australian construction and operations contracts are e2pected to increase the ,alue and proportion o$ local content.
:
6 :
5ibre in Ne* 8e,elop!ents4 Polic 9pdate 22 <une 2011. &ee Corporate Plan 2011 - 201? released 20 8ece!ber 2010% at &ection 1.10% Government -olicy 2ecisions% p.2:.
2A
6 August 2012
NBN Co. Ltd.
0 C.M-AN* &-$A'E
0+1 Manage!ent )estructure in August 2011 NBN Co reorganised its !anage!ent structure in August 2011 to cater $or its transition $ro! a startup% $ocused on planning and net*or0 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 $or construction% deplo !ent planning% 6T and net*or0 operations% health% sa$et and en,iron!entL The integration o$ sales% pricing% industr relations and regulator $unctions in the e2panded depart!ent o$ Product /anage!ent and 6ndustr 7elationsL The bringing together o$ suppl chain !anage!ent% procure!ent% co!!ercial strateg and the !anage!ent o$ the Telstra 8e$initi,e Agree!ents and the .ptus '5C Agree!ent as part o$ the Corporate depart!entL An increased $ocus on )ualit planning% control and i!pro,e!ent *ith the appoint!ent o$ a 'ead o$ Cualit L and The appoint!ent o$ a Chie$ Co!!unications .$$icer to !anage +o,ern!ent% !edia and sta0eholder relations as *ell as to o,ersee the public in$or!ation ca!paign that *ill in$or! and educate the Australian public about the NBN rollout. The restructure resulted in : $unctions reporting into the C-.. This includes A ne*l created or ne*l -consolidated $unctions% as sho*n in the ne* organisational charts in -2hibit ?-14 !%hi&it ,'1( / / Co "rganisational 5tructure *+1*'1.
Chie9 E@ecuti:e .99icer /i0e Cuigle
Chie9 Financial .99icer 7obin Pa ne
Chie9 ."erating .99icer 7alph &te$$ens
;ead o9 -roduct Manage!ent D Industr# )elations <i! 'assell
;ead o9 Cor"orate Be,in Bro*n ;ead o9 Fualit# /i0e Baiser
Chie9 'echnolog# .99icer +ar /cLaren
Chie9 Co!!unications .99icer Bieren Coone
&ource4 NBN Co
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6 August 2012
NBN Co. Ltd. &ince the 2011-1? Corporate Plan the $ollo*ing appoint!ents o$ senior !anage!ent personnel ha,e occurred4 7alph &te$$ens as Chie$ .perating .$$icerL 7obin Pa ne as Chie$ 5inancial .$$icerL /i0e Baiser as 'ead o$ Cualit L and Bieren Coone as Chie$ Co!!unications
.$$icer. -2hibit ?-2 sho*s NBN Co1s $unctions and inter$aces. !%hi&it ,'*( / / Co>s #unctions and 3nter)aces
Technology Vendor Liaison
Architecture & Technology
ealth! "afety & En#iron$
&ource4 Co
NBN
Net%or& Planning & Desig
Information Technology
National Test Facility
Product Engineering
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6 August 2012
NBN Co. Ltd.
0+2 -eo"le -olicies
and
NBN Co had 1%620 e!plo ees as at ?0 <une 2012 and has de,eloped a suite o$ integrated policies% processes and s ste!s to support its sta$$. NBN Co e!plo s people in all states and has per!anent o$$ices in & dne % /elbourne% 'obart% Canberra% Brisbane% To*ns,ille% Adelaide and Perth. The NBN is part o$ Australia1s critical national in$rastructure and is designed to !eet the securit re)uire!ents laid do*n in the Protecti,e &ecurit Polic 5ra!e*or0 "-S-F#. NBN Co is also *or0ing closel *ith the Co!!on*ealth to !a0e sure that an applicable securit re)uire!ents arising $ro! the current Teleco!!unications &ecurit &ector 7e$or! process are put into place. 0+0 ;ealth3 Sa9et# and En:iron!ent >;SE? NBN Co1s '&- /anage!ent & ste! *as $urther i!ple!ented during the calendar ear 2011. 6t includes incident and haQard reporting capabilit % ris0 assess!ent% in,estigation% auditing% case !anage!ent and reporting !odules. The $re)uenc o$ Lost Ti!e 6nKuries "L'I# to ?0 <une 2012 $or NBN Co e!plo ees *as 0.? LT6 per !illion *or0 hours and $or contractors it *as 0.@ LT6 per !illion *or0 hours. The $re)uenc o$ /edical Treat!ent 6nKur "M'I# in the period to ?0 <une% 2012 $or NBN Co e!plo ees *as 1.2 /T6 per !illion *or0 hours and $or contractors it *as @.@ /T6 per !illion *or0 hours. NBN Co1s '&- /anage!ent & ste! has been accredited to A&A>01% .'&A&1>001 and 6&.1A001. The har!onised (or0 'ealth and &a$et la*s ca!e into $orce as $ro! 1 <anuar 2012. Training on the ne* la*s and dut o$ care has been pro,ided to rele,ant sta$$. 0+2 Focus )elations on Co!!unit#
NBN Co has been conducting public in$or!ation sessions in the release sites% consulting councils about issues relating to de,elop!ent appro,als% per!its% tra$$ic !anage!ent and educating the public through direct !ail and li!ited local ad,ertising. NBN Co *ill continue to de,elop a local sta0eholder engage!ent !odel% the scale o$ *hich *ill increase co!!ensurate *ith increased rollout acti,it . 6t *ill be consistent *ith the re)uire!ents o$ the Public 6n$or!ation on /igration "-IM#% re$lected in an 6n$or!ation Ca!paign and /igration 8eed "ICM$# bet*een Telstra and the +o,ern!ent dated 2? <une 2011. The intention o$ the 6C/8 is to ensure high le,els o$ a*areness $or the need to !igrate ser,ices $ro! the e2isting copper net*or0 to the NBN. NBN Co1s local sta0eholder engage!ent !odel pro,ides $or a single point o$ contact *ithin NBN Co to co-ordinate all engage!ent throughout the design% build and read -$or-ser,ice phases o$ NBN Co1s rollout in an gi,en area% including !anage!ent o$ the co!plaints process. A 0e $ocus is to $urther de,elop this !odel be ond council and broad sta0eholder G co!!unit engage!ent to integrate all o$ the engage!ent acti,ities *hich need to occur ahead o$ the rollout. As part o$ NBN Co1s sta0eholder engage!ent the $ollo*ing acti,ities *ill be underta0en4
NBN Co *ill engage *ith bod corporate entities G o*ners o$ /ulti-8*elling 9nits "M$&s#% including co!!ercial /89s% to gain their appro,al to install net*or0 in$rastructureL Corporate Plan 2012-15 2: 6 August 2012
NBN Co. Ltd. Public 6nterest Pre!ises "-I-s# such as schools% hospitals% uni,ersities and aged care $acilities% *ill be speci$icall consulted in order to pro,ide appropriate connection solutionsL and NBN Co has released "re$er to the co!pan 1s *ebsite# its progra!!e $or net*or0 e2tensions to pre!ises *here -nd-9sers are *illing to pa the incre!ental additional cost o$ connection "the Networ E@tension -rogra!!e#. 5urther details are pro,ided in &ection A.?% -olicy 2ecisions. 0+1 Business Continuit# Business Continuit /anage!ent ensures that NBN Co identi$ies% e,aluates% !itigates% !onitors and reports ris0s. This enables NBN Co to continue operations in the e,ent o$ a !aterial business disruption% *hilst also ensuring that it can continue to !eet $inancial and ser,ice obligations to sta0eholders. NBN Co has established a Crisis /anage!ent Tea! "CM'# to ensure its critical business areas ha,e plans in place to reco,er operations in the e,ent o$ I/aKor1 and G or ICatastrophic1 disruption. T*o e2ercises in,ol,ing the C/T ha,e been co!pleted to ?1 /a 2012. Business Continuit % Crisis /anage!ent and 8isaster 7eco,er Plans ha,e been created and *ill e,ol,e as the organisation de,elops and !atures. 0+6 Fualit# I!"ro:e!ent Control and Continuous
The !anage!ent reorganisation announced in August 2011 created a speci$ic $ocus on Cualit and continuous i!pro,e!ent through the establish!ent o$ a central Cualit .$$ice. Cualit acti,ities since sub!itting the 2011-1? Corporate Plan began *ith the de,elop!ent o$ a consistent approach to )ualit across NBN Co% including the integration o$ )ualit planning% )ualit assurance% !easure!ent and continuous i!pro,e!ent processes. NBN Co has chosen to see0 A& 6&.@0014 200> I?uality 4anagement 5ystems < Re@uirements1 accreditation and has had initial discussions *ith the British &tandards 6nstitute *ith a ,ie* to attaining accreditation. A $ocus $or NBN Co as it ra!ps up its rollout acti,ities *ill be its e$$orts to bench!ar0% ,alidate and i!pro,e the )ualit o$ processes to achie,e scale. NBN Co *ill also see0 to bring a consistent approach to capturing rele,ant $eedbac0 $ro! -nd-9sers and Access &ee0ers in order to guide product and process i!pro,e!ents. 6n particular% NBN Co is de,eloping a rigorous co!plaints !anage!ent process% including integrating a call centre capabilit into the operations o$ NBN Co to e$$ecti,el deal *ith consu!er )ueries and co!plaints. This *ill also capture $eedbac0 to dri,e s ste!ic i!pro,e!ent. 0+, ;u!an )esource3 Industrial )elations and Sa9et# NBN Co1s !aKor 'u!an 7esource challenge has been to !anage the rapid gro*th in the *or0$orce re)uired to !eet NBN Co1s needs. NBN Co *or0s *ith its e!plo ees and their representati,es% and adheres to the 5air (or0 Principles. NBN Co has $our enterprise bargaining agree!ents "EBAs#% *hich co,er
classi$ications o$ e!plo ees in the technical% pro$essional% clerical G ad!inistration and contact centre areas. These -BAs are in Corporate Plan 2012-15 2> 6 August 2012
NBN Co. Ltd. place until 201A and pro,ide co!petiti,e ter!s and conditions $or NBN Co e!plo ees co,ered b the agree!ents. NBN Co re)uires its contractors to be responsible e!plo ers *ho pro,ide sa$e *or0 en,iron!ents and e$$icient *or0 practices ta0ing into account legal re)uire!ents% all rele,ant !ar0et $actors and business operating conditions. NBN Co re)uires contractors engaged in the construction o$ the NBN to de!onstrate their abilit to e$$ecti,el !anage e!plo ee relations !atters including co!pliance *ith the 5air (or0 Principles and National Code o$ Practice $or the Construction 6ndustr and the associated 200@ ,ersion o$ the i!ple!entation guidelines. NBN Co is ta0ing a 0e 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 Co1s *or0$orce in close cooperation *ith construction contractors. NBN Co has identi$ied 0e )uali$ications re)uired $or this *or0$orce and is de,eloping a range o$ training progra!!es including an NBN Co &a$et and A*areness course that is underta0en b NBN Co construction *or0ers. The e2ternall contracted NBN Co construction *or0ers *ill be dispersed across the countr pro,iding opportunities $or local e!plo !ent. NBN Co see0s 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 *or0 *ith its partners to encourage i!ple!entation and co!pliance *ith these plans.
2@
6 August 2012
NBN Co. Ltd.
'his "age is le9t intentionall# <lan +
?0
6 August 2012
NBN Co. Ltd.
2 ACCESS A))ANGEMEN'S3 -.LIC* $ECISI.NS

2+1 4holesale Broad<and Agree!ent >4BA?
)EG&LA'.)*
AN$
NBN Co1s (holesale Broadband Agree!ent "4BA# *as published as a &tandard 5or! o$ Access Agree!ent "SFAA# on ?0 No,e!ber 2011 *ith an initial ter! that *ill run $or 12 !onths% unless e2tended b agree!ent bet*een the Access &ee0er and NBN Co. 6n de,eloping the (BA% NBN Co undertoo0 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 &ee0ers. This pro,ides potential Access &ee0ers *ith a !eaning$ul role in the $or!ulation o$ the (BA and enables NBN Co to co!pl *ith its nondiscri!ination obligations. To date !ore than A0 Access &ee0ers ha,e entered into the (BA *ith NBN Co% and the co!!ercial suppl o$ 5ibre ser,ices to Access &ee0ers has co!!enced. NBN Co is continuing 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$. NBN Co has also published the (ireless Trial Agree!ent% the 6nteri! &atellite &er,ices Agree!ent% the &atellite (holesale Broadband Agree!ent and Testing Ter!s and Conditions as &tandard 5or! o$ Access Agree!ents. 2+2 S"ecial Access &nderta ing >SA&? NBN Co lodged a &pecial Access 9nderta0ing "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 *or0ing through $eedbac0 recei,ed $ro! the ACCC and Access &ee0ers in relation to the &A9 as lodged in 8ece!ber 2011% and continuing to engage constructi,el *ith the!. NBN Co ,ie*s the process o$ achie,ing an accepted &A9 as a d na!ic and consultati,e one% through *hich the underta0ing 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 &ee0ers and the ACCC. The high le,el design principles $or the proposed I6ncenti,e Based /odular &A91 *ere pro,ided to the ACCC and subse)uentl published on 20 <une 2012 to $acilitate $urther engage!ent *ith sta0eholders. NBN Co is currentl de,eloping the detailed dra$ting to i!ple!ent the proposed approach% and is intending to lodge the re,ised &A9 *ith the ACCC *ell in ad,ance o$ the co!pletion o$ the Contract 8e,elop!ent Process in relation to the (holesale Broadband Agree!ent "4BA#. The ACCC has announced that it is suspending its assess!ent o$ the 8ece!ber 2011 &A9 *hile NBN Co de,elops its re,ised approach. The &A9 co,ers the NBN Access &er,ice "*hich co,ers ser,ices o$$ered o,er the 5ibre% 5i2ed (ireless% and &atellite net*or0s# and sets out% $or a ?0 ear ter!% the ser,ice description and certain price- related and non-price related ter!s and conditions o$ access. The &A9 has t*o 0e obKecti,es4 to pro,ide an appropriate degree o$ regulator certaint to Access &ee0ers "and through the!% -nd-9sers# and NBN CoL and to pro,ide the long ter! $ra!e*or0 reasonabl necessar to achie,e 9ni$or! National (holesale Pricing "&N4-# o$ eligible ser,ices
supplied b utilities.
NBN Co to ser,ice pro,iders and
?1
6 August 2012
NBN Co. Ltd. The &A9 re)uires NBN Co to co!pl *ith price and non-price co!!it!ents that are !ade in the &A9. The &A9 *ill re)uire NBN Co to ensure that its &tandard 5or! o$ Access Agree!ent "including the (BA# re!ains aligned *ith the &A9. The &A9 co!!it!ents ha,e been !ade as part o$ an o,erall pac0age o$ !easures that pro,ide NBN Co *ith the opportunit to reco,er its prudentl incurred costs o,er ti!e% > including a rate o$ return abo,e the long ter! +o,ern!ent bond ield. 2+0 -olic# $ecisions 2+0+1 2012811 Assu!"tions Cor"orate -lan -olic# decisions that ha,e been integrated into the
The !ost recent de,elop!ents in polic 2012-15 Corporate Plan are4
GFrustratedH M$&s E NBN Co is considering its engage!ent !odel *ith Bodies Corporate to de$ine I$rustrated1 /89s in line *ith the &tate!ent o$ -2pectations "S.E#. Accounting Se"aration E As re)uired b the &.-% NBN Co is consulting *ith the ACCC on the design and i!ple!entation o$ accounting s ste!s to aid an $uture accounting separation arrange!ents. Accounting separation co,ers assets and costs% but not re,enues. Batter# Bac u" E The +o,ern!ent has consulted *idel *ith 0e sta0eholder groups on the e2tent to *hich NBN Co pro,ides Batter Bac0up to di$$erent t pes o$ -nd9sers "e.g. phone- onl -nd-9sers% &pecial &er,ices and Priorit Assist -nd-9sers#. The 2012-15 Corporate Plan incorporates the +o,ern!ent1s polic approach that -nd-9sers *ill be able to no!inate *hether or not the *ant NBN Co to pro,ide Batter Bac0up. Priorit Assistance households *ill be pro,ided *ith a Batter Bac0up. 6t is no* assu!ed that 50N o$ 5ibre -nd-9sers *ill elect not to ha,e Batter Bac0up% *ith a conse)uent reduction in Capital -2penditure. Co!"lete Co:erage within the Fi<re Foot"rint E NBN Co *ill ensure that all pre!ises *ithin Telstra Bands 1 and 2 are ser,ed "unless the are declared I$rustrated1# and pro,ide a de$inition o$ the 5ibre $ootprint. Networ E@tension E NBN Co has established a $ra!e*or0 $or Net*or0 -2tensions *here indi,iduals% businesses or go,ern!ents are *illing to pa the incre!ental cost o$ e2tension o$ the $ibre or $i2ed *ireless net*or0 to areas *here it *ould not other*ise be built. 9nder the Net*or0 -2tension Progra!!e% "a# pre!ises outside the 5ibre $ootprint can appl to ha,e NBN Co e2tend the 5ibre optic net*or0 E this is both $or indi,idual pre!ises located in areas adKacent to the 5ibre $ootprint% or $or large proKects co,ering to*ns or groups o$ pre!ises% and "b# s!all to*ns planned to be ser,ed b satellite technologies can appl to be connected to the 5i2ed (ireless net*or0. Applicants *ill be re)uired to pa the incre!ental cost $or the design and construction o$ the net*or0 e2tension to the pre!ises. There is considerable interest $ro! the @ co!!unit and ,arious le,els o$ go,ern!ent in Net*or0 -2tensions.
>
5or $urther in$or!ation on the NBN Co &A9% re$er the ACCC *ebsite4 http4GG*** .accc.go,.auGcontentGinde2.pht!lGite!6dG10201>5.
Process docu!ent a,ailable on NBN Co *ebsite $or getting connected ,ia Net*or0 -2tension progra!!e. http4GG***.nbnco.co!.auGgetting-connectedGnet*or0-e2tension.ht!l.
?2
6 August 2012
NBN Co. Ltd. -u<lic Interest -re!ises >-I-s?I !ostl# co!"osed o9 &ni:ersities3 Schools and ;os"itals E NBN Co has had discussions *ith +o,ern!ent on the e2pectations o$ ho* P6Ps should be ser,ed. NBN Co is underta0ing a trial *ith a nu!ber o$ P6Ps to $urther re$ine its engage!ent !odel. AdeBuatel# Ser:ed E The +o,ern!ent has released a polic paper setting out the criteria and a process $or deter!ining *hether e2isting $ibred pre!ises are ade)uatel ser,ed. NBN Co *ill not be re)uired to o,erbuild e2isting net*or0s *hich are ade)uatel ser,icing pre!ises. Non8-re!ises >Non8Addressa<le Locations? E The 2012-15 Corporate Plan does not include an costs nor re,enues $or non-pre!ises% *hich are de$ined in the &tate!ent o$ -2pectations as nonaddressable locations that NBN Co is per!itted% but not re)uired 10 to connect unless directed to do so b the +o,ern!ent. .ther assu!ptions in relation to ongoing +o,ern!ent polic decisions% *hich are consistent *ith the 2011-1? Corporate Plan% include4 Cherr# -ic ing E NBN Co assu!es the continued operation o$ the Ile,el pla ing $ield1 regi!e in 11 -art 7 o$ the ;elecommunications Act 1997. -oints o9 Interconnect >-oIs? E NBN Co assu!es the continued use and e$$ecti,eness o$ the 12 ACCC list currentl on the ACCC1s *ebsite. &ni:ersal Ser:ice Arrange!ents E The 2012-15 Corporate Plan includes a speci$ic pro,ision $or the cost o$ connecting and pro,iding *holesale ser,ices to 9ni,ersal &er,ice .bligation "&S.# pa phones. The Plan also includes esti!ates o$ NBN Co1s contribution to the T9&/A le, . S"ectru! )eBuire!ents E As at ?0 <une 2012 NBN Co has secured all the spectru! re)uired $or its Long Ter! &atellite &er,ice. Fi@ed 4ireless and Satellite Antici"ated 'echnolog# &"grades E The 2012-15 Corporate Plan incorporates the additional costs and re,enues associated *ith anticipated technolog upgrades $or 5i2ed (ireless and Long Ter! &atellite.
10 11
&tate!ent o$ -2pectations% 1: 8ece!ber 2010% re$er pages 5 and 1A% Attach!ent A E -remises 2e)inition. &tate!ent o$ -2pectations% 1: 8ece!ber 2010% re$er pages A-5. 12 http4GG*** .accc.go,.auGcontentGinde2.pht!lGite!6dG@522@2.
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6 August 2012
NBN Co. Ltd.
?A
6 August 2012
NBN Co. Ltd.
1 $E-L.*MEN' F.)ECAS'S
1+1 .:er:iew
6n the period since the publication o$ the 2011-1? Corporate Plan it has been necessar to re,ise NBN Co1s deplo !ent $orecasts to ta0e account o$ a nu!ber o$ $actors4 8ela s in the $inalisation o$ the conditions precedent to the Telstra 8e$initi,e Agree!ents. 6t *as originall assu!ed that b ?0 <une 2011 NBN Co *ould ha,e access to the core in$rastructure "8ucts% 8ar0 5ibre and -2change space# necessar to construct the NBN !ost e$$icientl and cost e$$ecti,el . 'o*e,er% the $inal condition $or the Telstra 8e$initi,e Agree!ents beco!ing unconditional% being the ACCC appro,al o$ Telstra1s &tructural &eparation 9nderta0ing% did not occur until : /arch 2012L Prolonged negotiations in order to achie,e sustainable and cost e$$ecti,e construction contracts. A contract *ith &ilcar $or construction on the -astern &eaboard *as signed on 1 <ul 2011 a$ter an e2tended negotiationL the subse)uent three contracts $or =ictoria "Trans$ield &er,ices#% (estern Australia "& ntheo# and Tas!ania "=isionstrea!#% *ere announced in &epte!ber 2011 $or =ictoria and (estern Australia and /arch 2012 $or Tas!ania. (hile the a*arding o$ these construction contracts *as later than originall planned% it *as a conse)uence o$ NBN Co ta0ing all the steps necessar to assure that I,alue $or !one 1 *as being achie,edL The ,arious decisions o$ the +o,ern!ent and ACCC% *hich led to the i!ple!entation o$ a se!i- distributed Points o$ 6nterconnect "-oIs# !odel *ith 121 locations% resulted in a !uch greater reliance on access to Telstra e2changes and the a,ailabilit o$ bac0haul rings to connect these locations. This reliance has co!pounded the i!pact o$ the dela in the $inalisation o$ the conditions precedent to the Telstra 8e$initi,e Agree!entsL &lo*er than anticipated occupation rate and connection de!and in Ne* 8e,elop!ents. The de!and $ro! ne* estate de,elopers to rollout 5ibre has been lo*er than anticipated in the 2011-1? Corporate Plan% re$lecting4 a# so$tness in the construction industr L b# the i!pact o$ Cueensland $loodsL and% c# the trans$er bac0 to Telstra o$ appro2i!atel :?%000 pre!ises% *hich *ere at &tage 5 appro,als at the ti!e o$ the 2011-1? Corporate PlanL and The priorit gi,en to4 o 8eplo !ent net*or0L o$ the Transit
o NBN Co1s obligation to connect Ne* 8e,elop!ents. This has led NBN Co to re,ie* its net*or0 planning and rollout acti,ities% in particular to include 5ibre &er,ing Areas "FSAs# containing large nu!bers o$ Ne* 8e,elop!ent pre!ises in its 5ibre rollout geographic prioritiesL and o 8eplo !ent net*or0. o$ the 5i2ed (ireless
These $actors ha,e led to an o,erall lo*ering o$ the 5ibre $orecasts $or 5;2012 to 5;2015% although the annual run rate is bac0 in line *ith the 2011-1? Corporate Plan b 5;2015.
?5
6 August 2012
NBN Co. Ltd. These $orecasts are consistent *ith the obKecti,e o$ Construction Co!!enced or Co!pleted $or appro2i!atel :5>%000 5ibre pre!ises b ?1 8ece!ber 2012% in line *ith NBN Co1s I12 !onth national 5ibre rollout schedule1 and Construction Co!!enced or Co!pleted $or appro2i!atel ?.5 !illion 5ibre pre!ises b ?0 <une 2015% in line *ith NBN Co1s I? ear 5ibre rollout plan1. -2hibit 5-1 pro,ides a su!!ar Corporate Plan . o$ the deplo !ent $orecasts e!bedded in the 2012-15
!%hi&it .'1( -remises -assed or Covered (Cumulative Aear' on'Aear)

2012 8 11 C-re!ises or Lots -assedJ CCo:ered *o*
F''Brown9ields Fi@ed 4ireless D Satellite Su<total Brown9ields and Fi@ed 4ireless D Satellite F''Green9ieldsJJ 'otal
5;2011 5;2012 5;201? 5;201A 5;2015 F*2016
&ource4 NBN Co Pre!ises or lots passed G co,ered rounded to the nearest thousands. Pre!ises are passed G co,ered *hen the shared net*or0 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.
1>%000 2@%000 2>6%00 0 1%12@%00 0 2%A@@%00 0 03762300 0
165%00 0 1:A%00 0 ?20%00 0 ?:A%00 0 :52%00 0 60,300 0
1>?%00 0 20?%00 0 606%00 0 1%50?%00 0 ?%251%00 0 23,66300 0
10%000 55%000 1:>%00 0 A1?%00 0 ,60300 0
1>?%000 21?%000 661%000 1%6>1%00 0 ?%66A%00 0 13102300 0
JGreen9ields in New $e:elo"!entsK lots "assed !a# not eBual "re!ises "assed de"ending on de:elo"erHs ti!e9ra!e to <uild+ JJF''- Green9ields are de!and8dri:en acti:ities which are su<=ect to :ariations in housing starts and $e:elo"er acti:ities >su""l# o9 new "re!ises and de!and 9ro! new de:elo"ers 9or NBN Co to install Fi<re?+
The lo*ering o$ the pre!ises passed G co,ered $orecasts has led to a corresponding adKust!ent to $orecasts $or pre!ises acti,ated. -2hibit 5-2 pro,ides a su!!ar o$ the connection $orecasts e!bedded in the 2012-15 Corporate Plan. !%hi&it .'*( -remises with Active 5ervice (Cumulative Aear' on'Aear)
2012 8 11 C-re!ises Acti:ated *o*
F''Brown9ields Fi@ed 4ireless D Satellite Su<total Brown9ields and Fi@ed 4ireless D Satellite F''Green9ieldsJ 'otal
5;2011 5;2012 5;201? 5;201A 5;2015 F*2016
&ource4 NBN Co Pre!ises acti,ated rounded to the nearest thousands *here nu!ber o$ pre!ises or lots e2ceeds 1%000. Pre!ises are acti,ated *hen a ,alid ser,ice order is recei,ed to install the dedicated optic $ibre cable connection to the pre!ises optical
600 ?%000 AA%000 A20%00 0 1%?11%00 0 23116300 0
200 10%000 ?>%000 6A%000 100%00 0 121300 0
>00 1?%000 >2%000 A>A%00 0 1%A11%00 0 23,02300 0
500 10%000 6:%000 20A%00 0 2,,300 0
>00 1?%500 @2%000 551%000 1%615%00 0 03171300 0
Net*or0 Ter!ination 8e,ices >N'$s? and reliable Po*er &uppl 9nit "-S&#% *ith Batter Bac0up >BB&? option "$or 5ibre pre!ises#. JF''- Green9ields are de!and8dri:en acti:ities which are su<=ect to :ariations in housing starts and $e:elo"er acti:ities >su""l# o9 new "re!ises and de!and 9ro! new de:elo"ers 9or NBN Co to install Fi<re?+
?6
6 August 2012
NBN Co. Ltd. 1+2 'ransit Networ NBN Co has prioritised Transit connecti,it to support earlier connection o$ +reen$ields estates ahead o$ the ,olu!e rollout. Prioritising the Transit rollout also supports the rapid deplo !ent o$ the 5i2ed (ireless net*or0. The 2012-15 Corporate Plan $orecasts that the Transit net*or0 *ill be co!pleted b the end o$ 5;2015% *ith the bul0 o$ the net*or0 in place b the end o$ 5;201A. 1+0 Fi<re -rogra!!e Construction
The ,olu!e construction plan is sho*n in -2hibit 5-?4 !%hi&it .',( 2eployment 5chedule )or *+1*'1. Corporate -lan
$e"lo#!ent Schedule to F*2021 /une *E F*2012 F*2011 1> 7, ' 17 ,0 1 , ' 1 0 165 0 1 2@ 7* 10 7+ 06 70 ? 11 1 * 2 10 1:A 10 12 F*2010 F*2012 F*2016 F*2020 ?%>62 .67.+ :6? 167++ 23621 103,70 63710 2%55@ 76991 A:: 16+9* 03006 63070 @0: 1A5 03171 F*201, F*2017 F*2016 F*202 1 10%0@1 76877 2%111 8*9 123202 136,, 6%@?@ *6976 1%5:A 679 73110 03622 @:A 2?2 73,21
Bro*n$ields Pre!ises Passed "3000s Pre!ises# # -remises -assed 2aily Run Rate (*.+ =or0ing 2aysBAear) +reen$ields Pre!ises Passed "3000s Pre!ises# G# -remises -assed 2aily Run Rate (*.+ =or0ing 2aysBAear) Fi<re -re!ises -assed >A000s -re!ises? Fi<re -re!ises -assed $ail# )un )ate >210 4or ing $a#sC*ear? Bro*n$ields Pre!ises Connected "3000s Pre!ises# # -remises Connected 2aily Run Rate (*.+ =or0ing 2aysBAear) +reen$ields Pre!ises Connected "3000s Pre!ises# G# -remises Connected 2aily Run Rate (*.+ =or0ing 2aysBAear) Fi<re -re!ises Connected >A000s -re!ises? Fi<re -re!ises Connected $ail# )un )ate >210 4or ing $a#sC*ear? 5i2ed (ireless O &atellite Pre!ises Co,ered "3000s Pre!ises# 5i2ed (ireless O &atellite Pre!ises Connected "3000s Pre!ises# 'otal -re!ises Connected 8 All -lat9or!s >A000s -re!ises?
2>6 16+*8 55 179 021 1320, AA 161 10 7+ 12 201 ?20 ?> 62
1%12@ ,6,7* 1:> 79* 1300, 03762 A20 16.+7 6: **7 27, 13,01 ?:A 6A 111
2%A@@ .678* A1? 971 23612 63220 1%?11 ,6.6. 20A .78 13111 23112 :52 100 13611
5%16> .6**. 1%111 16,9* 632,6 6361, ?%566 76+*9 ::5 16189 23021 13217 @21 161 23102
6%A2? .6+*+ 1%A15 16*1. ,3707 63201 A%5:> 76+77 1%01: 968 13162 13016 @?A 1@1 13,71
:%610 76776 1%6:? 16+,, 63270 13,70 5%A6> ,6.6* 1%22: 871 63661 23200 @A> 206 63601
>%>:@ .6+78 1%@0A 9** 63001 6%1@5 *69+8 1%A12 77+ ,360, 03627 @61 21@ ,372,
&ource4 NBN Co 8eplo !ent co!pletion planned in <une 2021.
The ,olu!e construction plan is ai!ed at !aintaining pea0 le,els o$ construction acti,ities "pre!ises passed and connected# at si!ilar le,els as the pre,ious 2011-1? Corporate Plan. This has re)uired an e2tension o$ the end o$ the 7ollout Period b 6 !onths to <une 2021 because o$ the slo*er ra!p-up in construction o,er the period 5;2011-5;201A. .,er the period co,ered b the 2012-15 Corporate Plan% NBN Co *ill ra!p up its construction capacit to a dail run rate o$ 6%A00 pre!ises passed per da during 5;2015 "total o$ Bro*n$ields plus +reen$ields pre!ises% out o$ *hich 5%500 relate to Bro*n$ields pre!ises onl # in order to reach 2.@ !illion pre!ises passed b 5ibre at the end o$ 5;2015. 5ro! 5;2016% the dail run rate is e2pected to sta in a range o$ bet*een 5%:00 to 6%>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 pea0 construction "assu!ing a 10 ear rollout and 250 *or0ing da s 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 -2hibit 5-A belo* and indicates that the NBN Co $orecast run rate o$ appro2i!atel 1.: !illion pre!ises passed per ear% albeit challenging% is achie,able.
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6 August 2012
NBN Co. Ltd. !%hi&it .'7( Annual Rollout Comparison with "ther Countries
i ssed 1000 o9 -re! ses -assed -er *ear -rHs e!ises -a -er *ear ?. A ? %A00 >Million? 2 :00
9&A "=eriQon# <apa n Aust '5C Net*or0 NBN Co 5orecast 5rance Portuga 1>0 0.1> l 0.15 150 Netherland 0.1 150 s 8en!ar0 5 6tal 0.1A 1A0 &pai 0.12 120 n 0.12 120 5inland :0 0.0: &*ede n Nor*a 1.% 1 :00 : 1 1. %:00 1. 1 %A00 : A 2.% :
7ollout in pri!aril highdensit are as o$ 1: states% !ostl in Northeast Telco o*ned in$rastructure 7ollout using e2isting o*ned in$rastructure *here possible in a higher-densit countr Co!bined .ptus G Telstra '5C rollout% predo!inantl !etro :5N aerial "co!!s corridor#L 25N Telstra o*ned ducts 1.:! p.a. achie,ed $or a 10!onth pea0 rollout
0.: :00
&ource4 68AT-% #;;C !uropean -anorama% 8ece!ber 200>. 7=A LLC% #i&re to the Come( /orth American 4ar0et Dpdate )or the #;;C Council% April 200@. <apanese /inistr o$ 6nternal A$$airs and Co!!unications% :apan 4onthly 5tatistics 3n)ormation and Communication 5ervice 5u&scri&ers and Contracts6 200@. Anal s s /ason% #i%ed road&and( connections and penetration% .ctober 200@. Co!pan reports. NBN Co 5orecast4 based on an a,erage o$ 6%200 pre!ises passed per da ",ersus $orecast dail run rate in a range o$ bet*een 5%:00 to 6%>00 pre!ises passed per da during pea0 construction acti,it #.This co!pares to a $orecast in the 2011-1? Corporate Plan o$ 6%000 pre!ises per da "rounded% ,ersus $orecast dail run rate o$ 5%@00 pre!ises passed per da #.
NBN Co e2pects that% o,er the ? ears to <une 2015% it *ill ta0e an a,erage o$ 12 !onths $ro! the co!!ence!ent o$ the detailed design in each location to the ti!e *hen pre!ises are 7ead 5or &er,ice ")FS# and a connection order can be placed. The 12 !onths is e2pected to reduce o,er the ? ears% ta0ing so!e*hat longer than 12 !onths as the rollout begins and reducing belo* 12 !onths in the latter part o$ the ? ear period. 1+2 Fi@ed Satellite 4ireless Access and Ser:ice and Satellite
1+2+1 4ireless Access Ser:ice
The NBN Co (ireless Access &er,ice "4AS# and long ter! &atellite Access &er,ice "SAS# *ill% to the greatest e2tent possible% !irror the NBN Co 5ibre Access &er,ice. The 5i2ed (ireless and Long Ter! &atellite net*or0s *ill initiall pro,ide ser,ices to NBN Co1s *holesale custo!ers at a pea0 speed o$ 12 !egabits per second "M<"s# in the do*nlin0% 1 !egabit per second in the uplin0 1? "both at a *holesale le,el#. Both net*or0s *ill continue to be upgraded to !atch the $ibre speed tiers *hen the technolog and costs !a0e this possible. The 2012-15 Corporate Plan includes the costs associated *ith anticipated technolog upgrades across both technologies.
1?
NBN Co is designing the NBN to be capable o$ deli,ering these speeds to NBN Co1s 7etail &er,ice Pro,iders ")S-s# and (holesale &er,ice Pro,iders "4S-s# ,ia 5ibre% 5i2ed (ireless and &atellite. &peeds actuall achie,ed b retail -nd-9sers *ill depend on a nu!ber o$ $actors including the )ualit o$ their e)uip!ent and in-pre!ises connection% the broadband plans o$$ered b their ser,ice pro,ider and ho* their ser,ice pro,ider designs its net*or0 to cater $or !ultiple -nd-9sers.
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6 August 2012
NBN Co. Ltd. 1+2+2 Contract with Ericsson and Fi@ed 4ireless First )elease Sites 6n August 2011% NBN Co announced that the co!!unities o$ Too*oo!ba% Ta!*orth% Ballarat% 8ar*in and +eraldton *ould be the $irst to recei,e the 5i2ed (ireless Access &er,ice. (or0 has co!!enced on all $i,e sites $or the design and construction. The 5i2ed (ireless rollout plan that has been de,eloped ta0es into account the a,ailabilit o$ the Transit net*or0% spectru! and li0el co!!unit consultations $or the building o$ ne* poles and to*ers $or the 5i2ed (ireless net*or0. 1+2+0 Long Satellite 'er!
The planned launch date $or the t*o satellites that $or! the basis o$ NBN Co1s Long Ter! &atellite &er,ice re!ains unchanged $ro! the 2011-1? Corporate Plan% at 5;2015. NBN Co has success$ull co!pleted agree!ents $or the deli,er o$ the satellites and $or essential ground e)uip!ent. (or0 *ill continue through 5;201? on the planning and design o$ ground stations and on selecting NBN Co1s satellite launch partner.
?@
6 August 2012
NBN Co. Ltd.
A0
6 August 2012
NBN Co. Ltd.
6 NE'4.)5 ).LL.&' AN$ C.S'S

6+1 Networ $e:elo"!ents 6+1+1 .:er:iew 5ro! 1 <anuar 2011% NBN Co *as gi,en responsibilit $or deli,ering a $ull NBNco!pliant *holesale-onl % open access net*or0 to all Ne* 8e,elop!ents abo,e a certain siQe inside the long ter! 5ibre $ootprint o$ the NBN. 6n su!!ar % this responsibilit % as the I6n$rastructure Pro,ider o$ Last 7esort1% is to deplo 5ibre to de,elop!ents in accordance *ith the +o,ern!ent1s 5ibre in Ne* 8e,elop!ents Polic "de,elop!ents o$ 100 or !ore lots "o,er ? ears# *ithin the long ter! 5ibre $ootprint and selected s!aller de,elop!ents at NBN Co1s discretion#. This responsibilit applies to co!!ercial% industrial and residential de,elop!ents. The construction and deli,er o$ 5ibre to Ne* 8e,elop!ents is dri,en b !ar0et de!and% *hich ,aries $ro! &tate to &tate% across regions and bet*een indi,idual local gro*th corridors. 6$ a de,elop!ent !eets the )uali$ication criteria set out in the +o,ern!ent1s polic % then NBN Co is re)uired to install 5ibre ahead o$ occupants !o,ing into ne*l constructed pre!ises. .ccupants o$ pre!ises in Ne* 8e,elop!ents that are connected to the NBN *ill ha,e 5ibre as their onl $i2ed line access. There$ore% NBN Co see0s to !eet e2pected $irst ser,ice connection dates% e,en i$ this !eans that onl one pre!ises is connected at the outset. Conse)uentl % NBN Co designs and deli,ers a 5ibre net*or0% including interi! Transit% *ithin a ,er short ti!e$ra!e. This re)uires rapid !obilisation and co!pletion across all Ne* 8e,elop!ents nationall . NBN Co has in,ested in 6T s ste!s speci$icall $or Ne* 8e,elop!ents to enable de,elopers to appl online $or a 5ibre ser,ice. Additional in,est!ents in people and processes ha,e been re)uired to establish contracting processes bet*een de,elopers and NBN Co. 8e,elopers are re)uired to design and install pit O pipe and conduit lead-in in$rastructure "I5ibre-7ead 5acilities1#% to NBN Co1s speci$ications% and NBN Co is responsible to deli,er a *holesale-onl % open access 5ibre net*or0 to all pre!ises constructed in that de,elop!ent. 6+1+2 New Status $e:elo"!ents )ollout L New
&igni$icant changes in the business !odel $or Ne* 8e,elop!ents ha,e ta0en place since publication o$ the 2011-1? Corporate Plan4 A+ Forecast Connected -re!ises
6n the 2011-1? Corporate Plan it *as assu!ed that NBN Co *ould accept applications $ro! de,elopers $or +reen$ields estates that had co!!enced &tage 5 ci,il *or0s construction prior to 1 <anuar 2011. These applications $or ser,ice "totalling in the range o$ :0%000 - 100%000 pre!ises# had been lodged *ith Telstra but *ere included in the 2011-1? Corporate Plan $orecasts as it *as assu!ed NBN Co *ould be re)uired to ser,ice these pre!ises. NBN Co subse)uentl agreed *ith Telstra that% due to the age o$ !an o$ the de,elop!ent ser,ice applications% their locations and a,erage siQe% these de,elop!ent applications should be co!pleted b Telstra. Conse)uentl % these applications are no longer being
handled b NBN Co% substantiall reducing the +reen$ield $orecasts $or 5;2011 and 5;2012.
A1
6 August 2012
NBN Co. Ltd. 6n addition% the 2011-1? Corporate Plan underesti!ated the signi$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$&s# de,elop!ents. 6n these &89 de,elop!ents NBN Co is re)uired to pro,ide 5ibre across the entire stage o$ the de,elop!ent "re$erred to as Ilots passed1#L et% ph sical pre!ises are constructed and occupied at a !uch slo*er rate. B+ Forecast E@"enditure Ca"ital
(ith the rollout o$ 5ibre 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*or0 is operational. This has re)uired NBN Co to i!ple!ent interi! connecti,it arrange!ents *hilst the Transit net*or0 is being constructed. As the Transit net*or0 is built% connected Ne* 8e,elop!ents sites *ill be !igrated to the per!anent net*or0. The capital in,est!ent is $ront-end loaded and *ill represent signi$icant additional costs as NBN Co needs to4 8esign and build a Te!porar Transit 5ibre Net*or0 "''FN# as *ell as e2tensions o$ the 8istribution net*or0 ahead o$ the NBN 5ibre net*or0 being deplo ed in these geographicall dispersed and relati,el s!all siQe areas. These long routes $ro! Telstra e2changes to the estate boundaries represent a signi$icant proportion o$ the increased $orecast costs $or Ne* 8e,elop!ents in the 2012-15 Corporate PlanL and Pro,ide 5ibre access aggregation capabilit . NBN Co has de,ised an interi! engineering solution% using on-site Te!porar 5ibre Access Nodes "'8FANs# deplo ed ,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 $ull utilised in the per!anent net*or0. The acti,e and passi,e assets are identical to those deplo ed in Bro*n$ields and are there$ore able to be re-used. The interi! $ibre build $ro! the estate boundaries to the !anaged bac0haul ser,ice connected at the Telstra e2change location is built to NBN Co1s passi,e speci$ications and *ill $or! part o$ the 8istribution net*or0 *hen the de,elop!ent is connected to the per!anent Point o$ 6nterconnect "-oI#. As the Transit net*or0 is deplo ed% the T-5ANs *ill be replaced b per!anent 5AN sites and all acti,e electronic co!ponents in the T-5ANs are e2pected to be re-used in other 5AN sites. Ne,ertheless in the short ter! capital in,est!ent *ill e2ceed 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$$er estate b estate#. The 2012-15 Corporate Plan also ta0es account o$ higher design and construction costs due to !obilisation o,erheads incurred b NBN Co1s construction partners. These !obilisation o,erheads are due to t*o !ain $actors4 'a,ing to deplo a *or0$orce in geographicall dispersed and relati,el s!all siQe areas% and there$ore not getting econo!ies o$ scale as en,isaged in Bro*n$ields 5ibre &er,ice Area /odules "FSAMs#L and 'a,ing to respond to !ultiple truc0 rolls during the li$ec cle o$ the Ne* 8e,elop!ents% as lots passed beco!e pre!ises passed% and as these pre!ises later beco!e occupied. Corporate Plan 2012-15 A2 6 August 2012
NBN Co. Ltd. C+ Forecast E@"enditure ."erating
As the I6n$rastructure Pro,ider o$ Last 7esort1% NBN Co *ill pro,ide 5ibre in eligible de,elop!ents an *here inside the long ter! 5ibre $ootprint% regardless o$ location and t pe% *here re)uested to do so b de,elopers. These de,elop!ents !a range $ro! Broadacre &89s to large ,ertical /89s% retire!ent ,illages and co!!ercial and industrial de,elop!ents. The *ide dispersion% as *ell as the di,ersit o$ de,elop!ent t pes% re)uires national and !ulti$unctional capabilities. The .perating -2penditure i!pacts o$ this re)uire!ent include4 Net*or0 .perations $ield sta$$ ha,e to acti,ate pre!ises across a dispersed geograph % *ith conse)uent resource and scheduling ine$$icienciesL the net e$$ect being higher sta$$ nu!bers and lo*er producti,it L -ach Ne* 8e,elop!ent is connected ,ia a !anaged interi! Transit ser,ice% selected $ro! a panel o$ &er,ice Pro,iders% to the Po6 to enable 7&Ps to deli,er ser,ices to residents in each Ne* 8e,elop!ent. The cost o$ these !anaged ser,ices ,aries !ar0edl according to the nu!ber o$ bac0haul pro,iders in a particular location. 6n !etropolitan $ringe "t picall *here !ost Broadacre de,elop!ents are# and regional areas% there is o$ten !ini!al bac0haul co!petition and prices are signi$icantl higherL and 6nteri! Transit costs are incurred to ser,ice the $irst pre!ises in a ne* de,elop!ent% e,en though it !a ta0e 12 E 1> !onths be$ore that de,elop!ent is populated to the point o$ e$$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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6 August 2012
NBN Co. Ltd. 6+2 Networ Forecast )ollout L Cost
6+2+1 Su!!ar# o9 Ma=or Ca"ital E@"enditure Changes 9ro! 2011810 to 2012811 Cor"orate -lan Total Capital -2penditure during the Construction period has increased b billion $ro! F?5.@ billion in the 2011-1? Corporate Plan to F?:.A billion in the 2012-15 Corporate PlanL F1.A
A reduction in the costs o$ e)uip!ent has been re$lected in the 2012-15 Corporate Plan% *hich is o$$set b an increase in other costs. These costs relate predo!inantl to additional labour costs pro,isioned $or $actors such as increased net*or0 distance esti!ates% additional *or0s in Custo!er Connect and /ulti-8*elling 9nits "M$&s#% and to higher ,olu!es o$ IBuild 8rops1L The 2012-15 Corporate Plan assu!es the ter!s o$ the .ptus '5C Agree!ent are $ull i!ple!entedL the e$$ect being an increase in Capital -2penditure $or the !igration o$ the .ptus '5C subscribersL and Additional Capital -2penditure relating to the i!ple!entation o$ Polic has been included in the 2012-15 Corporate Plan. 6+2+2 Fi<re Networ A+ Increased Co:ered )oad and -h#sical Networ $istances The 2012-15 Corporate Plan has e!bedded increased co,ered road distances and there$ore increased ph sical net*or0 distances $or the Local and 8istribution seg!ents o$ the 5ibre net*or0. The 5ibre net*or0 is no* $orecast to be $ull deplo ed b passing !ore than 1A>%000 0!s o$ co,ered road distance and 206%000 0!s o$ ph sical net*or0 distance "up $ro! 1?0%000 0!s o$ co,ered road distance and 1>1%000 0!s o$ ph sical net*or0 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 ph sical net*or0 distances% as *ell as the deplo !ent o$ Tether Cables "IT pe 2 Architecture1# . B+ &"date on Networ $esignK $esign o9 the Fi<re -assi:e Networ >G'#"e 2 ArchitectureH? NBN Co has designed the passi,e optical net*or0 hierarch beginning *ith a 5ibre 8istribution Area "F$A#% *hich connects appro2i!atel 200 -nd-9sers o,er the local 5ibre net*or0 to a 5ibre 8istribution 'ub "F$;#. A group o$ up to 16 58As $or! a 5ibre &er,ing Area /odule "FSAM#. The 8istribution net*or0 pro,ides di,erse optical paths $ro! each 5ibre 8istribution 'ub to the 5ibre Access Node% *hich is usuall located in a Telstra e2change. The di,erse optical paths allo* NBN Co to !eet ser,ice restoration ti!es in the e,ent o$ 5ibre cuts in the 8istribution net*or0. 6n 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*or0 and using Iribbon1 rather than Iloose tube1 $ibre. This resulted in a change to the passi,e net*or0 design and is 8ecisions
no* re$erred to as I'#"e 2 Architecture1. A 0e aspect o$ the IT pe 2 Architecture1 is the use o$ ribbon $ibre technolog . 7ibbon $ibre has been deplo ed *orld*ide in large-scale 5TTP deplo !ents "$or e2a!ple Borea Teleco! and NTT# and continues to be used in e2isting and ne* net*or0s.
AA
6 August 2012
NBN Co. Ltd. The ribbon $ibre chosen b NBN Co is a 12 $ibre !atri2% in *hich 12 $ibres are contained *ithin an acr late coating. This !atri2 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+0 Custo!er Connect A+ A""roach to Custo!er Connect >GBuild $ro"sH? The connection $ro! the street to the pre!ises can be carried out *hen the distribution and local seg!ents o$ the 5ibre net*or0 are being built E a IBuild 8rop1L or *hen an order $or a ser,ice is recei,ed $ro! a 7etail &er,ice Pro,ider ")S-# E a I8e!and 8rop1. 6n the 2011-1? Corporate Plan it *as assu!ed that I8e!and 8rops1 *ould be used. 5urther anal sis suggests IBuild 8rops1 $ro! the street to the pre!ises $or &89s and /89s are the !ost e$$ecti,e *a to !ini!ise !obilisation G de-!obilisation costs and to realise producti,it i!pro,e!ents. This is% in part% a conse)uence o$ the greater certaint in upta0e due to the co!!ence!ent o$ the Telstra 8e$initi,e Agree!ents and the .ptus '5C Agree!ent. The assu!ptions regarding IBuild 8rops1 are no* as $ollo*s4 8rops to 100N o$ /89 pre!ises passed to a Pre!ises Connection 8e,ice "-C$#L 8rops to @0N o$ Bro*n$ields &89s to a PC8 "assu!ing 10N non-consent or ,acant ho!es#L and 8rops to 100N o$ +reen$ields &89s and /89s to a Net*or0 Ter!ination 8e,ice "N'$# *here the pre!ises ha,e been co!pleted "pre-installs#. As part o$ the re,ie* o$ the IBuild 8rop1 strateg % incre!ental costs ha,e been e!bedded in this Plan $or the noti$ication process and access to pre!ises $or the installation o$ the lead-in $ro! street to PC8. B+ Ca<ling M$&
The 2011-1? Corporate Plan did not di$$erentiate bet*een &ingle 8*elling 9nits "S$&s# and /ultiple 8*elling 9nits "M$&s#. The 2012-15 Corporate Plan incorporates a pro,ision $or increased /89 costs relating to the design and cabling o$ all -nd-9ser units inside /89s% *ith the $ollo*ing assu!ptions4 NBN Co *ill build% at the sa!e ti!e% the Local net*or0 and the drop inside the /89 "IBuild 8rop1#% $ro! the Net*or0 Access Point to the PC8L and NBN Co *ill need to ha,e a higher degree o$ engage!ent *ith bod corporate entities and underta0e site sur,e s ahead o$ ti!e% incurring the detailed design and installation costs $or the internal cabling o$ /89s. This process is no* anticipated to increase costs% on a,erage% abo,e the cost o$ connecting
an &89% and *ill be co!pounded b the di,ersit in /89 designs% the lo* nu!ber o$ -nd9ser pre!ises per /89 location "a,erage @ units per /89 building% e2cluding duple2es# and the age o$ these /89s "lac0 o$ riser in$rastructure#.
A5
6 August 2012
NBN Co. Ltd. C+ Acti:ation Costs C Batter# Bac u" The 2012-15 Corporate Plan re$lects the latest esti!ates o$ acti,ation costs% $ro! the PC8 to the NT8. Partiall o$$setting increases in acti,ation costs is the assu!ption that under a I/ust .pt1 regi!e 50N o$ 5ibre -nd-9ser pre!ises *ill elect $or a Batter Bac0up 9nit "BB&# rather than the 100N !andator adoption pre,iousl assu!ed in the 2011-1? Corporate Plan. 6+2+2 Fi@ed Foot"rints 4ireless and Satellite
The 2012-15 Corporate Plan incorporates the latest esti!ates $or the costs relating to the 5i2ed (ireless Net*or0 and the &atellite Net*or0 "being the 5irst 7elease &atellite &er,ices "F)SS# and the establish!ent o$ the Long Ter! &atellite &er,ice "L'SS# ProKect#. The Plan additionall includes $urther net*or0 planning and design in the 5i2ed (ireless net*or0 build to !a2i!ise utilisation o$ both launched &atellite capacit and deplo ed 5i2ed (ireless capacit . 5i2ed (ireless costs ha,e been re,ie*ed to ta0e account o$4 The latest esti!ates $or the establish!ent and rollout o$ the 5i2ed (ireless net*or0% including contractual arrange!ents *ith -ricsson% spectru! ac)uisition costs and the nu!ber o$ cell sites re)uired o,er ti!eL and The adoption o$ !arginall higher planning ta0e-up assu!ptions than in the 2011-1? Corporate Plan as a result o$ the inclusion o$ anticipated technolog upgrades in the 5i2ed (ireless and &atellite $ootprint. The Long Ter! &atellite &er,ice costs ha,e been re,ie*ed to ta0e account o$ the latest esti!ates to suppl % launch% and co!!ission ne* in-orbit satellite capacit "t*o satellites# and establish the ground seg!ent "build and co!!ission ground station $acilities#. Contractual arrange!ents are no* in place $or the space seg!ent $ollo*ing the a*ard to &pace & ste!s G Loral "SSCL# in 5ebruar 2012 to build t*o Ba-band satellites and $or ground e)uip!ent $ollo*ing the a*ard to =ia&at in <ul 2012. 6+0 I' S#ste!s )eleases and Networ
NBN Co1s core 6T capabilities *ill continue to be enhanced to support the Co!pan 1s e2panding business needs% as *ell as to pro,ide increasing le,els o$ auto!ation $or critical business interactions "$or e2a!ple% *ith Access &ee0ers% construction partners and in$rastructure pro,iders#. 5urther integrated .perational &upport & ste!s ".SS# G Business &upport & ste!s "BSS# releases are scheduled $or <ul 2012% No,e!ber 2012 and /arch 201? as *ell as a nu!ber o$ inter!ediate plat$or! releases. These releases *ill pro,ide additional capabilities to support4 Auto!ation $or the construction o$ IBuild 8rops1% de$ect !anage!ent% and a portal $or construction contractorsL 6!ple!entation Agree!entsL o$ the Telstra 8e$initi,e
-2ternal *or0$orce and de!and !anage!ent $or 7&Ps% Net*or0 .perations and Construction 8eli,er PartnersL and -2pansion o$ NBN Co 5ibre product port$olio *ith $eatures such as /ulticast and &!all
Business Broadband.
A6
6 August 2012
NBN Co. Ltd. The operation o$ the NBN Co net*or0% including acti,ation and assurance transactions% *ill be highl auto!ated through progressi,e capabilit being deli,ered b the .&& progra!!e. 8uring 5;201? the Business to Business "B2B# gate*a *ill support increasing le,els o$ auto!ation bet*een NBN Co and Access &ee0ers on a nondiscri!inator basis. Progressi,e .&& capabilit releases *ill enable Access &ee0ers to !onitor their ser,ices and operationall support their -nd-9sers. 5ollo*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. 6n addition% NBN Co is planning a nu!ber o$ Acti,e Net*or0 7eleases "AN)s# and Passi,e Net*or0 7eleases "-N)s# to deli,er a range o$ enhanced product and operational business capabilities% including4 Acti:e Networ )elease 0 >AN)0? *ill be released $or net*or0 *ide deplo !ent in late 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 2 >AN)2? *ill be released $or net*or0 *ide deplo !ent in !id 201? and *ill deli,er Cualit o$ &er,ice "FoS# architecture and the capabilit $or higher speeds in the 5i2ed (ireless net*or0. This *ill enable the National Connecti,it Net*or0 "NCN# that pro,ides national La er 2 and La er ? ser,ices to support NBN Co in$rastructure. -assi:e Networ )elease 2 >-N)2? *ill be released $or net*or0 *ide deplo !ent in late 2012 and deli,ers passi,e 5ibre net*or0 Pre!ises 6nstall -)uip!ent "-IE#. The esti!ated costs o$ de,eloping and enhancing NBN Co1s core 6T s ste!s and $or supporting additional AN7 and PN7 ha,e been included in the 2012-15 Corporate Plan. 6+2 I!"le!entation Agree!ent o9 ."tus ;FC
The 2011-1? Corporate Plan did not include the i!pact o$ an agree!ent $or the !igration o$ the .ptus '5C subscribers to the NBN o,er ti!e. The 2012-15 Corporate Plan incorporates the !igration o$ an initial addressable nu!ber o$ 0.5 !illion .ptus '5C subscribers under the .ptus '5C Agree!ent. 6+1 I!"le!entation $ecisions o9 -olic#
As noted in &ection A.?% -olicy 2ecisions% the 2012-15 Corporate Plan incorporates the i!ple!entation o$ se,eral Polic decisions% being4 Points o$ 6nterconnect% Ne* 8e,elop!ents% Batter Bac0up% 5i2ed (ireless and Long Ter! &atellite anticipated technolog upgrades% 5ibre net*or0 $ull co,erage o$ Band 1 and Band 2% Public 6n$or!ation on /igration "-IM#% 9&. Pa phones% Public 6nterest Pre!ises "-I-s#% and T9&/A Le, . No other outstanding polic 2012-15 Corporate Plan. decisions ha,e been )uanti$ied and incorporated into the
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6 August 2012
NBN Co. Ltd.
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6 August 2012
NBN Co. Ltd.
, MA)5E' -).$&C'S
,+1 Mar et &"date
EN(I).NMEN'
En:iron!ent
AN$
,+1+1 Mar et $e!and Assu!"tions )e!ain the Sa!e /ar0et de,elop!ents and trends in the past ear ha,e been in-line *ith "or ahead o$# e2pectations% supporting NBN Co1s core re,enue assu!ptions contained in the 2011-1? Corporate Plan. As $urther e2plained belo*% the $ollo*ing 0e re,enue dri,ers re!ain largel unchanged $ro! the 2011-1? Corporate Plan. Be points include4 &trong data usage gro*th has continued since 2011-1?L 5i2ed broadband speed gro*th has been restricted on legac net*or0sL NBN Co1s pricing !odel has been ,alidated b !ar0etL and 7esidential e2pectations. *ireless-onl ho!es are *ithin the non-$ibre
(ith co!!ercial ser,ices recentl launched% the integration and anal sis o$ actual -nd-9ser data *ill be included in $uture updates to the Corporate Plan. ,+1+2 $ata Growth &sage
8ata usage continues to increase at an annual rate considerabl higher than that assu!ed in the 2011-1? Corporate Plan% as indicated b the $ollo*ing range o$ recent e2ternal bench!ar0 gro*th rates% see -2hibit :-1. !%hi&it 7'1( enchmar0s 5ummary o) 2ata Dsage
$ata &sage "er !onth Growth M
5e# Bench!ar s Australia AB& E 'istorical trend - 5i2ed Broadband 8o*nloads per subscriber "+B G !th# "AB& >15?.0% 8ece!ber 2011# Telstra E 'istorical trend - Broadband data tra$$ic per user on the Copper Net*or0 "Telstra A+/ -2planator /e!orandu! - +rant &a!uel 7eport% 2011# International
CA2011 E 20 +BG!onth
>0N ;o; 51N ? r CA+7
nGa
5;11 - >0N ;o;
Tele+eograph E 'istorical trend - 6nternational band*idth usage "+lobal Band*idth 7esearch% <ul 2012# 'ong Bong E 'istorical trend E Broadband 6nternet Tra$$ic =olu!e di,ided b subscribers ".$$ice o$ the Co!!unications Authorit % 2012#
nGa
5:N A r CA+7 "200:-11#
8ec-2011 E :6 +BG!onth
A?N 10 r CA+7 "$ro! 8ec-2001#
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6 August 2012
NBN Co. Ltd.
-ricsson E +lobal 5orecast - 5i2ed Broadband Tra$$ic gro*th "Tra$$ic and /ar0et 7eport% <une 2012#
&ource4 =arious as listed abo,e
nGa
?0N 6 r CA+7 "2011-201:#
The strong recent data usage gro*th trend% pri!aril as a result o$ -nd-9sers utilising a greater share o$ their allocated data allo*ances% is supported b data $ro! the $ollo*ing sources4 Australian Bureau o$ &tatistics "ABS# 6nternet Acti,it &ur,e "AB& >15?.0 # in 8ece!ber 2011 sho*s that4 o A,erage tra$$ic per $i2ed broadband subscriber increased >0.5N o,er the last 12 !onths% $ro! 10.> +BG!onth to 1@.5 +BG!onth. Total reported data usage increased b >0.2N or an increase o$ 51%256 TBG!onth "$ro! 6?%>>5 TBG!onth to 115%1A1 TBG!onth# o,er the last 12 !onths. The total a,erage blended "$i2ed and !obile# !onthl usage per user "the AB& 5i2ed plus (ireless categories# is no* circa 10.A +BG!onth "a 5:.>N or ?.> +BG!onth increase co!pared to the 8ece!ber 2010 Cuarter results#. The blended "$i2ed and !obile# !onthl usage per subscriber gro*th o$ 5:.>N is a result o$ an >0.5N gro*th in $i2ed line !onthl usage per subscriber and 5.6N gro*th in !obile !onthl usage per subscriber o,er the 12 !onths to 8ece!ber 2011L and 5i2ed broadband data accounted $or @?.?N o$ the total !onthl data do*nloaded o,er the period.
15 1A
Telstra A+/ -2planator /e!orandu! cites that the co!pan had *itnessed an E8+F growth in &road&and data tra))ic per user on the Copper /etwor0 in the )inancial year ended ,+ :une *+11G "re$er to -2hibit :-2#. !%hi&it 7'*( ;elstra>s #i%ed road&and ;ra))ic Growth
&ource4 +rant &a!uel 7eport% Page 1?
16
1A 15
http4GG*** .abs.go,.auGausstatsGabsR.ns$G!$G>15?.0S.pen8ocu!ent. Telstra A+/ -2planator /e!orandu! 2011 "Page 1?#. http4GGtelstra.iceA.interacti,ein,estor.co!.auGtelstra1101G-2planator /e!orandu!2011Ginde2. ht!l. 16 http4GG***.telstra.co!.auGabouttelstraGdo*nloadGdocu!entG-2planator -/e!orandu!.pd$.
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NBN Co. Ltd. +loball % data $ro! Tele+eograph 1s +lobal Band*idth 7esearch &er,ice "<ul 2012# re,eals that de!and $or international band*idth gre* A5N in 2011% and at a co!pounded rate o$ 5:N annuall bet*een 200: and 2011. 6nternational band*idth re)uire!ents in Asia and -urope gre* at a co!pounded rate o$ !ore than 55N bet*een 200: and 2011% *hile international band*idth de!and in North A!erica and .ceania gre* A:N% as sho*n belo*. !%hi&it 7',( Dsed 3nternational *++7'*+11 andwidth Growth &y Region6
&ource4 Tele+eograph 2012
<ul
Broadband is e2pected to re!ain the do!inant $i2ed-line re,enue gro*th dri,er o,er the period co,ered b the 2012-15 Corporate Plan. &trong usage gro*th is e2pected as realti!e on-de!and tra$$ic increases *ith the introduction o$ ne* 6nternet Protocol Tele,ision "I-'(# products released to the !ar0et and an increased adoption o$ digital de,ices and cloud-based applications. This has been e,idenced b 4 Telstra Connected 'o!e 6nde2 report sho*ed that custo!ers are no* e)uall li0el to choose to sta at ho!e and do*nload !o,ies ,ia the internet or *atch =ideo-on8e!and "(o$# on their T= as the are to ,isit the cine!a. 5urther!ore% 6>N also agreed that the introduction o$ 6PT= products had increased their ho!e entertain!ent e2perience *ith the !ost popular $eatures being do*nloading and 1: *atching !o,ies "?1N#L Telstra research in 2011 $ound that the a,erage Australian ho!e had $our netconnected de,ices. 6n the preceding ear hal$ o$ those ho!es had added at least one 1> !oreL
1:
Telstra Connected 'o!e 6nde2 7eport http4GG*** .telstra.co!.auGabouttelstraG!ediacentreGannounce!entsGtelstra- s*itches-on-ne*-ipt,-content-and-apps.2!l. 1> Telstra doubles plan data allo*ance $or Broadband subscribers http4GG*** .telstra.co!.auGabouttelstraG!edia- centreGannounce!entsGdouble-the-data-boost-$or-telstrabundle-custo!ers.2!l.
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NBN Co. Ltd. Telstra upgraded their $i2ed broadband plans% *hich included the introduction o$ a 500 +B plan. 1@ Telstra cited Tincreased concurrent device usageU $ro! subscribers as the underl ing $actor behind this decisionL /ar0et Clarit reported that the !edian broadband usage allo*ance plan had increased $ro! 55 +B in 2010 to 200 +B in 2011% an increase o$ 26ANL and The lac0 o$ co!parable 6PT= products and ser,ices in the local !ar0et has !eant that Australia is et to e2perience the $ull data i!pact $ro! this seg!ent% ho*e,er% gi,en the rate o$ ne* product releases% it is e2pected that this is onl a !atter o$ ti!e. 6n 21 5ebruar 2012% 'o!e Bo2 .$$ice ";B.#% a subsidiar o$ Ti!e (arner% too0 a 10N share in local !edia startup Cuic0$li2% *hich is loo0ing to e!ulate the success o$ Net$li2 22 in the 9&. Net$li2 no* !a0es up ??N o$ pea0 do*nstrea! $i2ed access net*or0 tra$$ic in the 9&. 'B. has de,eloped a range o$ strea!ing !o,ie options to either internet connected T=s% ga!e consoles or ,ia *eb bro*sers% in addition to a !ail-order 8=8 rental business purchased $ro! BigPond in 2012. There has also been an obser,ed increase in the le,el o$ in,est!ent in 8ata Centres and international capacit builds o,er the last 12 !onths. .,er the last 1> !onths a range o$ international and local co!panies% including 'e*lett Pac0ard% 8ell% A!aQon% -)uini2% Telstra% Leighton and Ne2t8C ha,e all announced 2? plans to build ne* data centres in Australia. These ne* builds ha,e been Kusti$ied b increasing data consu!ption% *hich has resulted $ro! higher ,ideo usage and the adoption o$ cloud-based ser,ices and applicationsL Leighton Contractors announced the construction o$ a ne* Perth to &ingapore cable *hich could pro,ide up to 16 Tbps at $ull capacit . 6n addition a 9&F100 !illion internet cable bet*een Ne* Vealand and & dne *ill be built creating !ore capacit L and -2isting international
25 20
cable
net*or0s
&outhern Cross
Cable
2A
and Australian
<apan Cable announced capacit upgrades to their e2isting international cable net*or0s. Both co!panies ha,e upgraded their current 10 +bps plat$or!s to A0 +bps *ith an abilit to $urther scale to 100 +bps in the $uture.
1@ 20
Telstra Plan 9pgrade http4GGe2change.telstra.co!.auG2011G0@G1@Gbetter-,alue-again-$or-all-bigpond-custo!ersG. Closing the Trans-Tas!an Broadband =alue +ap4 Co!paring Prices in Australia and Ne* Vealand http4GG***.!ar0etclarit .co!.auG$reebiesG. 21 http4GGin,estor.)uic0$li2.co!.auG67/GCo!pan G&ho*Page.asp2GP85sG1>?6?00>>@@6G6n,est!entb Ti!e(arners'o!eBo2.$$ice6nc. 22 +lobal 6nternet Pheno!ena 7eport4 1' 2012 R http4GG*** .sand,ine.co!Gne*sGglobalMbroadbandMtrends.asp 2? Ne2t8C 6n,esting F200 !illion in ne* data centre builds in & dne % /elbourne% Canberra and Perth% Leighton in,esting F500 !illion in e2pansion plans nationall % Telstra F>00 !illion in a ne* /elbourne 8ata Centre Build. 2A http4GG*** .southerncrosscables.co!GpublicGho!eG*hatsne*detail.c$!S(hatsNe*68W@:. 25 http4GG*** .arnnet.co!.auGarticleGA1>A55Gaustralia-KapanMcableMpic0sMcienaMupgradeG.
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6 August 2012
NBN Co. Ltd. ,+1+0 S"eed Growth C Bandwidth
7ecent trends indicate that *hile -nd-9sers continue to upgrade their speed tier plans% the -nd-9ser e2perienced speed gro*th o,er current $i2ed broadband in$rastructure is starting to slo*% supporting the need $or $ibre. Australian Bureau o$ &tatistics "ABS# data illustrates the de!and $or $aster broadband ser,ices. 8uring the ear to 8ece!ber 2011 the nu!ber o$ broadband subscribers purchasing high speed broadband ser,ices "o,er 2A /bps#% a,ailable at a pre!iu! co!pared to A8&L2H ser,ices% increased b ?5N. This group !ade up 11N o$ total internet subscribers at ear end. There are signs e!erging that the gro*th in a,erage -nd-9ser speeds e2perienced is beginning to slo* in Australia due to 8&L li!itations. This is illustrated b the $act that largel 8&L-based indicati,e user-tested do*nload speeds "e2cluding Telstra and 2: .ptus# ha,e increased onl 12N in the ear up to April 2012. B co!parison% o,erall speed gro*th *as ?6N "up $ro! ?0N in the prior ear# *hen Telstra and .ptus are included due to the i!pact o$ '5C upgrades. This illustrates the underl ing de!and $or higher speeds *here the technolog is able to pro,ide the!. 7esponding to the de!and $or $aster speeds% 5TTP net*or0 operators o,erseas ha,e begun to o$$er co!!ercial do*nstrea! speeds *ell in e2cess o$ 100 /bps. .perators include Bredbands Bolaget "&*eden#% &uperonline "Tur0e #% Altibo2 "&*eden O 8en!ar0#% and T-. "Lithuania#. 'ong Bong Broadband Net*or0 re!ains the trailblaQer 2> o$$ering 1 +bps s !!etrical ser,ices. Long ter! band*idth de!and predictions also re!ains strong *ith an Anal s s /ason report on access net*or0s $or the 9B regulator% .$co! "2010#% esti!ating the continued e,olution o$ residential de!and $or both upstrea! and do*nstrea! band*idth. This is being dri,en b the e!ergence o$ e-go,ern!ent% e-health% e-learning% e-business% e-ho!es% Cloud Co!puting% 6PT=% and &ocial Net*or0ing G 9ser-+enerated ser,ices. This esti!ation *as based on an e2tensi,e research progra!!e% in,ol,ing consultation *ith a large nu!ber o$ di$$erent sta0eholders "operators% e)uip!ent ,endors% 6nternet &er,ice Pro,iders "IS-s#% regulators and acade!ics#. !%hi&it 7'7( 2ownstream 2emand Assumptions )or Residential Customers
Figure 3.13: Downstream demand assumptions for residential customers [Source: Analysys Mason] Timescale '()* '('* '(+* *er!ices '+DTV channel and +(,-.s Internet ' D +DTV channel and )((,-.s Internet 'ultra0 D +DTV channel and +((,-.s Internet Total downstream bandwidt1 re#uirements /(,-.s +((,-.s /((,-.s
'1
26
&ource4 Anal s s /ason I7e,ie* o$ the e$$icienc and prudenc o$ NBN Co1s 5ibre and *ireless net*or0 design1 report /arch 2012% Page ?5% a,ailable at http4GG***.accc.go,.auGcontentGinde2.pht!lGite!idG10201>5
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http4GG***.abs.go,.auGausstatsGabsR.ns$G!$G>15?.0S.pen8ocu!ent. Net&peedG.o0la national a,erage sa!ple o$ ,oluntar user 2011. &ource4
speed
tests
to
&epte!ber
*** .netinde2.co!Gsource-dataG. 2> http4GG*** .di$$ractionanal sis.co!GblogG2012G05G0@G$ree-*ebinar-success$ul-$tth-ser,ice-strategies.ht!l.
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NBN Co. Ltd. !%hi&it 7'.( Dpstream 2emand 5cenario Assumptions

Figure 3.14: Timescale '()* '('* '(+* pstream demand scenario assumptions [Source: Analysys Mason] &pload t8pe 4.load +D #ideo 4.load large file 2*(,5 in ) minute3 4.load D +D #ideo 4.load large file 2+((,5 in '( seconds3 4.load ultra0 D +D #ideo 4.load large file 2)65 in '( seconds3 &pstream bandwidt1 re#uirements +(,-.s )(,-.s )((,-.s )'(,-.s +((,-.s 7((,-.s
&ource4 Anal s s /ason I7e,ie* o$ the e$$icienc and prudenc o$ NBN Co1s $ibre and *ireless net*or0 design1 report /arch 2012% Page ?5% a,ailable at http4GG***.accc.go,.auGcontentGinde2.pht!lGite!idG10201>5
5ro! their anal sis% it can be seen that a ten-$old increase in de!and is e2pected bet*een 2015 and 20?5. This indicati,e prediction *as re-con$ir!ed in a 2012 report on the IReview o) the e))iciency and prudency o) / / Co>s )i&re and wireless networ0 design1 b Anal s s 2@ /ason co!!issioned $or the NBN Co &pecial Access 9nderta0ing "SA&# sub!ission. !%hi&it 7'6( 2ownlin0 andwidth
)(((((
andwidth Re@uirements vs$ !volution o) ;echnology
Figure 3.1!: Downlin" #andwidt$ re%uirements &s. e&olution of tec$nology #andwidt$ [Source: Analysys Mason]
Committed information rate 2,-.s3
)((((
)((( 6P8N P'P )(( Demand
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http4GG*** .accc.go,.auGcontentGinde2.pht!lGite!6dG10201>5.
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6 August 2012
NBN Co. Ltd. !%hi&it 7'7( Dplin0 andwidth Re@uirements vs$ !volution o) ;echnology andwidth
Figure 3.1': )((((( plin" #andwidt$ re%uirements &s. e&olution of tec$nology #andwidt$ [Source: Analysys Mason]
Committed information rate 2,-.s3
)((((
)((( 6P8N P'P )(( Demand
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) '()* '('* '(+* &ource4 Anal s s /ason I7e,ie* o$ the e$$icienc and prudenc o$ NBN Co1s $ibre and *ireless net*or0 design1 report /arch 2012% Page ?6% a,ailable at http4GG***.accc.go,.auGcontentGinde2.pht!lGite!idG10201>5
,+1+2 4ireless8onl# Mar et?
;o!es
>)esidential
The 2011-1? Corporate Plan assu!ed that I(ireless-onl 'o!es1 gro* $ro! 1?N in 5;2011 to 16.?N in 5;2020. These assu!ptions ha,e been retained in the 2012-15 Corporate Plan. 7o /organ 7esearch sur,e s ha,e $ound ho!es *ithout a $i2ed line ,oice ser,ice "I=oice (ireless- onl 'o!es1# a,eraged appro2i!atel 11.5N o$ households during 5;2011% up $ro! appro2i!atel 10N in 5;2010. .$ these households a proportion subscribe to either a $i2ed line broadband ser,ice "Na0ed 8&L or '5C broadband#% and G or a cable based Pa T= ser,ice. 7o /organ data indicates that% during 5;2011% 20N o$ households *ithout a $i2ed line ,oice ser,ice had either both $i2ed broadband or Pa T=. This suggests that appro2i!atel @.5N o$ households "5;2011 a,erage# do not ha,e an $or! o$ $i2ed line ser,ice% co!pared *ith the assu!ption o$ 1?N in the 2012-15 Corporate Plan. This assess!ent aligns *ith the assess!ent pre,iousl underta0en b .,u! $or the preparation o$ the 2011-1? Corporate Plan. ,+2 -roduct $e:elo"!ent ,+2+1 -roduct .:er:iew The NBN Co product set is being o$$ered as $ollo*s4 A uni$or! product construct across 5ibre% 5i2ed (ireless and &atellite E $eaturing the ?0 sa!e $our product co!ponents across each access net*or0 and based on the technolog -agnostic -thernet bitstrea! $ra!e*or0L
?0
Access =irtual Circuit "A(C# E band*idth allocated to -nd-9ser pre!ise.
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6 August 2012
NBN Co. Ltd. A 12 /bps do*nstrea! and 1 /bps upstrea! entr -le,el o$$er at a *holesale le,el ?2 across all three access net*or0s at the sa!e *holesale priceL and A 5ibre product *ith
?? ?1
speed
options
o$
up
to
+bps
"1000GA00
/bps
do*nstrea!Gupstrea!# *ill be introduced in 201A *ith initial speed options up to 100GA0 /bps. 6n all cases speeds are at a *holesale le,el onl . The NBN Co product road!ap *ill be deli,ered across si2 IProduct 7eleases1 $or the 5ibre o$$ering% and t*o releases each $or both the 5i2ed (ireless and the &atellite o$$ering. The $irst releases o$ both the 5ibre and &atellite products *ere co!pleted in 2011 and the initial release o$ 5i2ed (ireless in April 2012. NBN Co has i!ple!ented t*o tra$$ic classes that are distinguished in capabilit and per$or!ance. The are designed to acco!!odate the *idest ,ariet o$ applications on the NBN. Access &ee0ers !a ta0e ad,antage o$ these tra$$ic classes to pro,ide !ore tailored per$or!ance and e$$ecti,e utilisation o$ the NBN. Tra$$ic ClassM1 "'C 1# pro,ides a co!!itted le,el o$ pre!iu! capacit on the NBN. 6t is targeted to*ards applications that re)uire deter!inistic per$or!ance and are li0el to be sensiti,e to pac0et loss such as realti!e% interacti,e applications e.g.% ,oice. Tra$$ic ClassMA "'C 2# pro,ides capacit on a Ibest e$$orts1 basis and is targeted at bro*ser-based applications% such as e!ail and internet. Tra$$ic is !ar0ed on $ro! the -nd-9ser pre!ises on the Access =irtual Circuit "A(C# and is )ueued at the Connecti,it =irtual Circuit "C(C# according to that !ar0ing. The tra$$ic classes on the Connecti,it =irtual Circuit are all co!!itted capacit to an indi,idual Custo!er. NBN Co plan to introduce t*o $urther tra$$ic classes in 201? to support business speci$ic applications and net*or0ing. ,+2+2 2012 Achie:e!ents -roduct $e:elo"!ent
Building on the core $oundation 5ibre and &atellite capabilit o$ 2011% NBN Co continues to de,elop and launch product $eatures to !ar0et. NBN Co has also continued its consultation and collaboration *ith the industr on $uture product releases. 6n 8ece!ber 2011% NBN Co released t*o consultation papers - an update to its Product and Pricing .,er,ie* and a Business &er,ice paper. 5eedbac0 on the papers is being used to cra$t the product re)uire!ents and scheduled launch dates. These consultation papers *ere coupled *ith three net*or0 discussion papers on Tra$$ic Per$or!ance% Net*or0 to Net*or0 6nter$ace 7edundanc and Net*or0 A,ailabilit . 6n /arch 2012% the ? ear 6nitial Product 7oad!ap *as published on the NBN Co *ebsite. This docu!ent sets out the detailed $eatures and $unctionalit to be deli,ered to 2015. 6t *ill be updated )uarterl and is a 0e co!!unication ,ehicle *ith the industr .
Connecti,it =irtual Circuit "C(C# E aggregated capacit ac)uired *ithin each Point o$ 6nterconnect "-oI# ser,ice area. 9ser Net*or0 6nter$ace "&NI# E data and ,oice ports at the -nd-9ser pre!ise. Net*or0-to-Net*or0 6nter$ace "NNI# E data port at the Point o$ 6nterconnect "-oI#. ?1 &ee $ootnote 1? in relation to $actors a$$ecting -nd-9ser speeds. ?2 &atellite access net*or0s !eans the Long Ter! &atellite &er,ice "L'SS# a$ter 2015. ?? &ee $ootnote 1? in relation to $actors a$$ecting -nd-9ser speeds.
56
6 August 2012
NBN Co. Ltd. 6n /arch 2012% /ulticast beca!e a,ailable to Access &ee0ers in the National Test 5acilit Isandpit1 as an Alpha 7elease *ith a targeted launch date o$ late third )uarter 2012. The 5acilities Access product *as launched in /a 2012 in line *ith the a,ailabilit o$ the $irst per!anent Points o$ 6nterconnect "-oIs#. The $irst release o$ 5ibre *as enhanced in <une 2012 *hen Net*or0-to-Net*or0 6nter$ace "NNI# redundanc options beca!e a,ailable% including the options $or long range inter$aces on this product co!ponent. The 6nitial 7elease o$ the 5i2ed (ireless Access &er,ice *as achie,ed in April 2012. ?A This release pro,ides a 12 /bps do*nstrea! and 1 /bps upstrea!% si!ilar to NBN Co1s 5ibre product *ith general release scheduled $or third )uarter o$ calendar ear 201?. NBN Co continues to per$or! ICusto!er 5ocused 8esign1 anal sis o$ each product that it launches to !ar0et. 6n line *ith NBN Co1s co!!it!ent to )ualit and to Access &ee0ers% these proKects see0 to understand the strengths and opportunities $or i!pro,e!ent $or each product a$ter it has been launched. These proKects $ocus on the product e2perience o$ both Access &ee0ers and indi,idual -nd- 9sers. ,+2+0 Ne@t Ste"s $e:elo"!ent 9or NBN Co -roducts
The 0e $uture product releases $or NBN Co are $ocussed on ser,icing co!!ercial pre!ises% be the s!all or ho!e o$$ices% !ediu! business or large enterprises. 5ibre product releases ?% A and 5 *ill all $ocus on the business !ar0et. Product 7elease ? *ill deli,er an initial product set $or business% *hich *ill include additional ser,ice le,els. Product 7elease A *ill include additional tra$$ic classes to ensure that business tra$$ic can be prioritised as it is carried o,er the NBN. Product 7elease 5 *ill $ocus on high data a,ailabilit $or large enterprises and *ill include redundant lin0s and additional ser,ice le,els. NBN Co is also planning to launch the IProduct 8e,elop!ent 5oru!1% *hich is a collaboration tool *here Access &ee0ers are able to sub!it ideas to NBN Co $or $uture La er 2 products. ,+0 NBN8Based -lans ,+0+1 )etail .:er:iew )etail -lans
The launch o$ co!!ercial retail ser,ices has con$ir!ed that the pricing construct de,eloped b NBN Co *ill achie,e the obKecti,es initiall set. NBN ser,ices are no* co!!erciall a,ailable to -nd-9sers *ith prices co!paring *ell *ith the alternati,es% A8&L 2H and '5C broadband. As at <une 2012% all !aKor 7etail &er,ice Pro,iders ")S-s# *ith the e2ception o$ TP+ Teleco! had released NBN retail plans to !ar0et. Currentl 4 /ore than 500 NBN plans "total per!utations# are in the !ar0et $ro! 15 7&Ps% including both 5ibre and &atellite ser,icesL Bench!ar0 setters Telstra and .ptus priced o$$ers e)ui,alent to e2isting Copper G '5C ser,icesL
?A
&ee $ootnote 1? in relation to $actors a$$ecting -nd-9ser speed.
5:
6 August 2012
NBN Co. Ltd. Telstra and .ptus $ocused on !ar0eting 25G5 /bps and 100GA0 /bps productsL T*o 7&Ps% 6nternode and -2etel% ha,e alread re,ised do*n the prices o$ their NBN plans *hile three 7&Ps Nth Cld Telco% Ace 6nternet and 7i,erTel ha,e increased data allo*ancesL and -,olution o$ inno,ati,e bundles are e!erging% e.g. inclusion o$ (i-5i access b so!e 7&Ps and addition o$ entertain!ent options including 5o2tel "Telstra% .ptus# and 5etch 6PT= "iiNet G 6nternode% .ptus#. -2hibit :-> and -2hibit :-@ illustrate that bundled pricing released b 7&Ps $or a 12G1 /bps and 25G5 ?5 ?6 /bps ser,ices $alls largel *ithin the range o$ A8&L 2H bundled pricing. -2hibit :-10 illustrates bundled pricing released b 7&Ps $or 100GA0 /bps ser,ices. !%hi&it 7'8( Comparative undled -ricing / / Retail 1*B1 4&ps < A259 *H
F160
F1A0
F1A0
F120 F112 F115 F105 F100 F@5 E "er !th F@0 F>0 F:2 F60 F50 FA5 FA0 F62 F50 F50 F50 FA0 F?5 F65 F60 F60 F60 F60 F60 F>2 F>0 F:5 F:0 F:0 F60 F60 F50 F:0 F:0 F:0 F>5 F>0 F:0 F@0 F>0 F>0 F>0 F@0 F100
F60 F50
F20
F-
1-100+B
101 - 500+B
X 501+B
GB -er Mth
&ource4 NBN Co% Anal sis based on 7&Ps published pricing as at <une 2012% re$lecting circa Y@0N o$ !ar0et share. Note4 JThe shaded +reen area represents the range o$ bundled NBN plans in the !ar0et at the indicated speed tier. JJThe range o$ bundled A8&L plan price points in the !ar0et are depicted b the area bet*een the 2 solid lines on the chart.
?5 ?6
&ee $ootnote 1? in relation to $actors a$$ecting -nd-9ser speeds. A $ull e2planation o$ the construction o$ these -2hibits is pro,ided separatel . The green shaded areas represents the range o$ NBN ser,ices $or gi,en do*nloads. The price points are retail prices charged b ele,en 7etail &er,ice Pro,iders ")S-s# based on NBN Co1s *holesale pricing. The area depicted bet*een the 2 solid lines re$lects the range o$ bundled A8&L pricing plans currentl in the !ar0et.
5>
6 August 2012
NBN Co. Ltd. !%hi&it 7'9( Comparative undled -ricing / / Retail *.B. 4&ps < A259 *H
F160
F1A5 F1A0
F12@ F120 F11: F11? F10@ F105 F100 F@5 F>5 E "er !th F>0 F>0 F:: F:? F:0 F6: F60 F60 F55 F50 FA0 F55 F50 F65 F65 F65 F>: F>5 F>0 F:5 F65 F65 F>0 F:5 F:5 F65 F:5 F@5 F@? F@0 F100 F@0 F@@ F@5 F@0 F@0 F>5 F@5 F120 F110 F105
F60
F60
FA0
F20
F-
1-100+B
101 - 500+B
X 501+B
GB -er Mth
!%hi&it 7'1+( Comparative undled -ricing / / Retail 1++B7+ 4&ps < A259 *H
F1>0 F165 F160 F150 F1A0 F1?2 F1?0 F120 F115 F102 F100 F100 F@5 F@0 F>5 F110 F105 F10? F100 F@5 F@0 F>5 F110 F110 F100 F@5 F125 F120 F12? F11@ F12@ F1A@
F12@ F125
E "er !th
F100 F@5 F>5 F>2 F:5 F:0 F60 F:5 F>0 F>0 F>0 F@0 F@2 F>5 F>?
F115 F115 F110 F105
F110 F100
F>0
F>0
F:0 F60
FA5 FA0
F20
F-
1-100+B
100- 501+B
X 501+B
GB -er Mth
5@
6 August 2012
NBN Co. Ltd. ,+0+2 NBN .:er:iew 4holesale -ricing
(hile current NBN retail pricing at the 25G5 /bps speed tier is highl co!petiti,e *ith e)ui,alentl bundled retail A8&L pricing in the !ar0et% the underl ing *holesale costs $or the ser,ice are e,en !ore co!pelling. (hen co!pared to both the ACCC1s 6nteri! Access 8eter!ination charges and Telstra1s initial proposed rates $or *holesale A8&L ser,ices% co!parable NBN port ?: *holesale rates are up to 2:N cheaper than Telstra1s Vone 2G? rate and up to 12N cheaper than the $inall declared ACCC rate. As sho*n in -2hibit :-11 A+=C% NBN Co1s C=C charges are appro2i!atel 60N cheaper than Telstra1s proposed A+=C per /bps charge and appro2i!atel A0N per /bps cheaper than the post <une 2012 rate declared b the ACCC. !%hi&it 7'11( Comparative =holesale -ricing / / vs$ ;elstra
'elstra -ro"osed 4holesale A$SL -ricing F?0.00 F?:.00 F55.00 ACCC Interi! Access $eter!ination Fe<ruar# F25.A0 F?0.>0 FA0.50 JG F??.65JJ NBN 21C1 -ricing 20 $ece!<er 2011 F2:.00 F2:.00 F20.00
None 1 None 2C0 AG(C C C(C >"er J until ?1G6G2012 M<"s?
JJ $ro! 1G:G2012 &ource4 NBN Co% Telstra% ACCC Note4 Telstra re)uires ser,ice pro,ider purchasing *holesale 8&L ser,ices to purchase Aggregating =irtual Circuits "A+=C#
Note that additional charges are applicable in order to pro,ide a $ull *or0ing ser,ice. NBN Co is re)uired to o$$er interconnect at 121 locations% *hile custo!ers o$ Telstra1s *holesale 8&L ser,ices interconnect at state capital locations. ,+0+0 Initial Custo!er )es"onse to NBN -ricing 6nitial ta0e-up o$ co!!ercial ser,ices and the results o$ purchaser intention sur,e s are both indicating that the !i2 o$ speeds to be ac)uired b -nd-9sers could be higher than the a,erage speed $orecast re$lected in the 2012-15 Corporate Plan. NBN Co1s pricing and product ,alue proposition is pro,ing to be attracti,e to the initial pool o$ -nd-9sers. The band*idth de!and assu!ptions o$ $uture Corporate Plans *ill be $urther re,ie*ed as the custo!er base !o,es be ond the initial !i2 o$ earl adopters and trial participants.
?:
E$$$ At a wholesale level6 ;elstra charges some wholesale customers di))erent prices )or ports in di))erent geographic areas$ ;he ACCC understands that ;elstra characterises !5As into IJone 1> or IJone *B,> )or its wholesale customers &ased on whether there is actual or potential 259A4'&ased competition$G &ource4 2eclaration o) the wholesale A259 service under -art K3C o) the Competition and Consumer Act *+1+6 #inal 2ecision% Page ?5L 5ebruar 2012. (ebsite4http4GG***.accc.go,.auGcontentGite!.pht!lS ite!6dW10?2>?:Onode6dWA:0c5$a5cc5Ae$56?2e>6>cbb@1ade22O$n W8eclarationN20o$N20theN20*holesaleN20A8&LN20ser,iceN20-N20$inalN20decisionN20paper.pd$ ?> Telstra4 http4GG*** .accc.go,.auGcontentGite!.pht!lS ite!6dW102>:00Onode6dWA2$ac>1A1:$ace1:6@?6$16?>$65aaa1O$nWTelstraN
20-N20PublicN20sub!issionN201@N20<anuar N202012.pd$. ?@ ACCC4 http4GG***.accc.go,.auGcontentGinde2.pht!lGite!6dG10?@>11. A0 NBN Co4 http4GG***.nbnco.co!.auGassetsGdocu!entsGproduct-and-pricing-o,er,ie*-dec-11.pd$.
60
6 August 2012
NBN Co. Ltd.
7 )E(EN&E F.)ECAS'S
7+1 Sna"shot Forecasts o9 )e:enue
!%hi&it 8'1( Revenue -lan < #orecast 5ummary

)e:enue /une *E -re!ises -assed or Co:ered >A000s -re!ises? 5TTP Pre!ises 1> 5i2ed (ireless O -assed &atellite Pre!ise 165 'otal -re!ises 170 -re!ises Connected >A000s -re!ises? 5TTP Pre!ises 1 5i2ed (ireless O &atellite Pre!ise 0 'otal -re!ises Connected Gross )e:enue >EM? 1 8 F*2012 F*2010 F*2011 ?A1 ?20 661 F*2012 F*2016 F*201, F*2020 6%2:@ @21 ,3200 F*2017 F*2016 F*202 1 10%:>? @61 113,22 12%202 @:A 1031,6 F*202 7 1?%A6: 1%055 123122 F*202 0 15%A?5 1%1>1 163616
?@ 1:A 210
1%?0: ?:A 13671
2%@12 :52 03662
A%625 @0: 13102
:%>?> @?A 73,,2
@%2>? @A> 103200
A 10 12 2
5A ?> 62 17
A>: 6A 111 120
1%515 100 13611 126
?%0?6 1A5 03171 13026
A%?A1 161 23102 23271
5%5@A 1@1 13,71 03221
6%6@5 206 63601 23200
:%60: 21@ ,372, 1316,
>%51? 2?2 73,21 631,1
10%010 ?0? 103010 63,66
11%A6A ?@@ 113760 12316,
&ource4 Co
NBN
7+2 )e:enue -lan NBN Co1s o,erall 7e,enue $orecasts are broadl si!ilar to those in the 2011-1? Corporate Plan "see -2hibit >-2#. The 2012-15 Corporate Plan has relati,el lo*er 7e,enues in the earl ears% !ainl due to slo*er deplo !ent o$ the 5ibre access net*or0% and relati,el higher 7e,enues in the later ears% !ainl due to the addition o$ an initial addressable nu!ber o$ 0.5 !illion .ptus '5C subscribers under the .ptus '5C Agree!ent. The assu!ptions underl ing the initial re,enue proKections contained in the 2011-1? Corporate Plan ha,e continued to be re$ined as NBN Co has had the opportunit to test the !ar0et% albeit on a relati,el li!ited scale so $ar% and to identi$ ne* potential sources o$ re,enue. AdKust!ents in the rollout pro$ile% particularl $or the 5ibre net*or0 and Ne* 8e,elop!ents% ha,e also i!pacted the re,enue plan% as has the assu!ption that .ptus '5C subscribers *ill !igrate to the NBN o,er ti!e. As discussed in &ection :.1.2% 2ata Dsage Growth6 and &ection :.1.?% 5peed B andwidth Growth% recent !ar0et data supports the 2011-1? Corporate Plan assu!ptions around speed and data usage gro*th. These trends are $urther supported b the initial co!position o$ ser,ices acti,ated and the le,el o$ usage seen across the NBN Co net*or0. (hile retaining data usage and product !i2 assu!ptions largel unchanged% there re!ains signi$icant uncertaint as to *hether E and $or ho* long - the historic Co!pound Annual +ro*th 7ate "CAG)s# o$ the past 10-15 ears can be !aintained o,er the longer ter!. NBN Co continues to e,aluate the potential upside $ro! additional ser,ices to the proKected re,enue base. The 2012-15 Corporate Plan retains the assu!ption that both C=C and A=C prices *ill $all o,er ti!e in both real and no!inal ter!s. NBN Co retains the $le2ibilit to !odi$ the rate at *hich $uture prices are decreased in the e,ent that actual data usage and G or speed gro*th is higher or lo*er than assu!ed in the 2012-15 Corporate Plan E $or e2a!ple% should actual data usage gro*th e2ceed the assu!ed gro*th rate then NBN Co *ould be able to reduce prices !ore )uic0l and still !aintain the sa!e o,erall return.
61
6 August 2012
NBN Co. Ltd. The !aKor changes in the re,enue plan co!pared *ith the 2011-1? Corporate Plan are as $ollo*s4 6nclusion o$ .ptus '5C subscribers !igrating to the NBNL AdKust!ents to $orecast connections resulting $ro! deplo !ent changes% notabl in Ne* 8e,elop!entsL 7ebalancing the pro$ile o$ A=C tiers to re$lect the initial co!position o$ speed tiers being ta0en up o,er the National Broadband Net*or0L /inor adKust!ents to A=C and C=C pricing pro$ilesL and AdKust!ents to 5i2ed (ireless and &atellite 7e,enues% resulting $ro! higher ta0e-up due to the introduction o$ anticipated technolog upgrades. 6ncorporating these assu!ptions results in a re,enue pro$ile as illustrated in -2hibit >-2. !%hi&it 8'*( #orecast Revenue Composition (1 4illion) (/ominal 2ollars)
>E M? 12%000 10%000 >%000 6%000 A%000 2%000 5;2012 5;201A 5;2016
A=C
)e:enue Co!"osition >E Million in No!inal $ollars?
5;201>
5;2020
5;2022
5;202A
5;2026
5;202>
C=C O .ther 5ibre &atellite O 5i2ed (ireless 2011 - 1? CP Total 7e,enues
&ource4 Co
NBN
7+2+1 ."tus Su<scri<ers
;FC
As noted in &ection 1.1% 3ntroduction to the *+1*'1. Corporate -lan% the .ptus '5C Agree!ent has been gi,en $inal authorisation $ro! the ACCC on 1@ <ul 2012 and the i!pact o$ that agree!ent has been included in the base case $or the 2012-15 Corporate Plan. .ptus reported A@6%000 subscribers on its '5C net*or0 at the end o$ /arch 2012. The 2012-15 Corporate Plan assu!es an initial addressable nu!ber o$ 0.5 !illion subscribers under the .ptus '5C Agree!ent. This assu!ption di$$ers to the 2011-1? Corporate Plan% *hich assu!ed that these subscribers *ould re!ain on the .ptus '5C net*or0. The i!pact is to increase 7e,enues in the 2012-15 Corporate Plan% both through higher subscriber nu!bers and through a positi,e i!pact on A7P9 "see &ection >.2.A% ALC -roduct 4i%#.
62
6 August 2012
NBN Co. Ltd. 7+2+2 New $e:elo"!ents NBN Co has updated the pre!ises gro*th $orecast $or Ne* 8e,elop!ents to re$lect current so$tness in short-to-!ediu! ter! construction suppl and econo!ic conditions% *hile still aligning *ith underl ing housing de!and gro*th in the longer-ter! "based on population gro*th proKections#. 5;2012 has seen building co!!ence!ents and appro,als $or residential d*ellings continue to decline. These lo*er le,els are e2pected to continue into 5;201? resulting in lo*er co!pletion ,olu!es through to 5;201A than pre,iousl e2pected. &hort-ter! cu!ulati,e pre!ises gro*th has been re,ised do*n b "1A#N through to 5;201A. This is based on a range o$ recent Australian Bureau o$ &tatistics "ABS# d*elling construction IAppro,als1 and I&tarts1% Construction 6ndustr and Ban0 6ndustr 8*elling starts and 6n,est!ent proKectionsL and No signi$icant change has been !ade to longer-ter! assu!ptions as the !ar0et is assu!ed to upturn to a le,el supporting $uture underl ing de!and in residential households. NBN Co1s long ter! $orecasts ha,e been re$erenced to residential household gro*th rates% assu!ing a 5;2012 to 5;2025 Co!pound Annual +ro*th 7ate "CAG)# o$ 1.6N p.a.% $ro! AB& $orecasts. The abo,e $actors result in a $orecast a,erage gro*th in the 5TTP $ootprint o$ appro2i!atel 16?%000 ne* occupied residential and business sites each ear o,er the period 5;2010 to 5;2025 and an a,erage gro*th o$ appro2i!atel 15A%000 per ear o,er the period 5;2010 to 5;20A0. 7+2+0 Connections -ro9ile As discussed in &ection 5% 2eployment #orecasts% connections $orecasts ha,e been re,ised to incorporate the $ollo*ing4 6ntegration $orecastsL o$ re,ised deplo !ent
6ntegration o$ the .ptus '5C agree!ent% *hich is $orecast to increase the nu!ber o$ connections o,er ti!e as outlined in &ection >.2.1% "ptus C#C 5u&scri&ers. !%hi&it 8',( Comparison (Cumulative) (I+++s)
-re!ises
>A000s? >%000
2012 - 15 CP 2011 - 1? CP
o)
rown)ields
-remises
Connected
Brown9ields -re!ises Connected -ro9ile >In 'housands?
6%000
A%000
2%000
5;2011
5;201?
5;2015
5;201:
5;201@
5;2021
5;202?
5;2025
5;202:
&ource4 NBN Co
6?
6 August 2012
NBN Co. Ltd. 7+2+2 A(C Mi@ -roduct
The pro$ile o$ speed tiers $orecast to be purchased b -nd-9sers has been re,ised re$lecting the positi,e i!pact o$ the inclusion o$ high do*nload speed ser,ices !igrated $ro! the .ptus '5C net*or0 and the !ar0et reaction to the launch o$ co!!ercial NBN Co 5ibre ser,ices. The !ar0eting o$ retail $ibre o$$erings $ro! the !aKor 7&Ps "Telstra and .ptus# ha,e $ocused on the 25G5 and 100GA0 /bps tiers% and this has been re$lected in the ta0e-up across the initial rollout $ootprint. This has resulted in a redistribution in the 2012-15 Corporate Plan in $a,our o$ the 25G5 and 100GA0 /bps products *hen co!pared to the 2011-1? Corporate Plan and is illustrated in -2hibit >-A. !%hi&it 8'7( "verall #i&re 5u&scri&er 5plit &y ALC 5peed ;iers
>M o9 su<scri<ers? 100N @0N 500G200 >0N :0N 60N 50N A0N ?0N 20N 10N 0N 5;2012 50G20 25G10 25G5 12G1 5;201A 5;202> 5;2016 5;201> 5;2020 5;2022 5;202A 5;2026 250G100 100GA0
.:erall Fi<re Su<scri<er S"lit <# A(C S"eed 'iers

1000GA00
&ource4 NBN Co
The $orecast o$ a,erage speed pro,isioned re!ains unchanged $ro! the 2011-1? Corporate Plan be ond 5;2021% and a substantial proportion ta0ing 12G1 /bps ser,ices retained throughout re$lecting e2pected de!and $ro! lo*-end broadband and ,oice onl -nd-9sers. 7+2+1 $ata &sage The long ter! assu!ptions used to $orecast de!and $or C=C ha,e largel been retained $ro! the 2011-1? Corporate Plan base case assu!ption - .ption "A1#. As discussed in &ection :.1.2% 2ata Dsage Growth% data usage continues to increase at an annual rate considerabl higher than that assu!ed in the 2011-1? Corporate Plan. The approach adopted $or the 2012-15 Corporate Plan re$lects the continued con$idence that !ediu!-ter! gro*th in data usage can be sustained but recognises that ,isibilit o$ long ter! gro*th re!ains li!ited. 6n the e,ent that actual CA+7 $or data usage e2ceeds NBN Co1s assu!ptions% pricing !a be adKusted accordingl "i.e. reduced !ore rapidl # in order to !aintain o,erall 7e,enue le,els.
6A
6 August 2012
NBN Co. Ltd. 7+2+6 NBN Co -ricing The e2hibits belo* su!!arises NBN Co1s current pricing construct. These prices are A1 consistent *ith the 2011-1? Corporate Plan% subKect to4 -2hibit >-5 no* includes a 6G1 /bps Access =irtual Circuit "A(C# tier $or the 5irst 7elease &atellite &er,ice "F)SS#L -2hibit >-6 no* re$lects the introduction o$ a ?00 Bbps Tra$$ic Class 1 tierL and -2hibit >-: is also a!ended *ith a ne* tier $or the 5irst 7elease &atellite &er,ice "F)SS#. !%hi&it 8'.( Access Lirtual Circuit (ALC) -ricing
A(C 'IE) $.4NS')EA M CA-ACI'* 6 /bps 12 /bps 25 /bps 25 /bps 50 /bps 100 /bps 250 /bps 500 /bps 1%000 /bps ACCESS CA-ACI'* &-S')EA ')AFFI M C CA-ACI' CLAS 1 /bps TC A 1 /bps 5 /bps 10 /bps 20 /bps A0 /bps 100 /bps 200 /bps A00 /bps TC A TC A TC A TC A TC A TC A TC A TC A M.N';L* )EC&))ING C;A)GE >E@8GS'? '*-E P67 P67 P67 P67 P67 P67 P67 P67 P67 F2A.00 F2:.00 F?0.00 F?A.00 F?>.00 F:0.00 F100.00 F150.00 F2A.00 FIB)E 4I)ELES S L.NG 'E)M SA'ELLI 'E F2A.00 FI)S' )ELEAS E SA'ELLI' F2A.00
6G1 /bps 12G1 /bps 25G5 /bps 25G10 /bps 50G20 /bps 100GA0 /bps 250G100 /bps 500G200 /bps 1%000GA00 /bps
&ource4 NBN Co Note4 &ee $ootnote 1? in relation to $actors a$$ecting -nd-9ser speeds.
A1
-2hibit >-6 includes rounding adKust!ents and the correction o$ a t pographical error $or Tra$$ic Classes 1 and ?L -2hibit >-: also corrects a t pographical error in the earlier Net*or0-to-Net*or0 6nter$ace "NNI# pricing table.
65
6 August 2012
NBN Co. Ltd. !%hi&it 8'6( -ricing )or 5ymmetrical Capacity &y ;ra))ic Class and Availa&ility &y -lat)orm ;echnology )or Access Lirtual Circuits (ALC)
CA-ACI' * M.N';L* )EC&))ING C;A)GE ACCESS $.4NS')EA CA-ACI' M * CA-ACI' * 150 0bps 150 0bps ?00 0bps 500 0bps 1 /bps 2 /bps 5 /bps 10 /bps 20 /bps ?0 /bps A0 /bps 100 /bps ?00 0bps 500 0bps 1 /bps 2 /bps 5 /bps 10 /bps 20 /bps ?0 /bps A0 /bps 100 /bps &-S')EA M CA-ACI'* 150 0bps ?00 0bps 500 0bps 1 /bps 2 /bps 5 /bps 10 /bps 20 /bps ?0 /bps A0 /bps 100 /bps '*-E ')AFFI C CLASS 1 F10.00 F20.00 F??.00 F66.00 F1?2.00 F??0.00 F?2.00 F6A.00 F12>.00 F1@2.00 F256.00 F1@2.00 FA>0.00 FA>.00 F@6.00 >E@8 ')AFFI C CLASS 2 ')AFFI C CLASS 0 FIB)E 4I)ELES S ;-& ;-& ;-& ;-& ;-& ;-& ;-& ;-& ;-& ;-& ;-& ;-& ;-& L.NG 'E)M SA'ELLI 'E ;-& ;-& ;-& FI)S' )ELEAS E SA'ELLI A(AILABILI'* >AS -E) ')AFFIC CLASS?
C67 C67 C67 C67 C67 C67 C67 C67 C67 C67 C67
!%hi&it 8'7( /etwor0 to /etwor0 3nter)ace (//3) -ricing

NE'4.)5 '. NE'4.)5 IN'E)FACE $ESC)I-'I.N IN'E)FAC SE)(IC E E CA-ACI'* )ANGE 1000BaseT E 0.10!s 1 +bps range 1000BaseLD E 100!s range 1000Base-D E A00!s range 10+BaseL7 E 10 0!s range 10+Base-7 E A00!s range 1 +bps 1 +bps 10 +bps 10 +bps 0.1 0!s 10 0!s A0 0!s 10 0!s A0 0!s -)ICING >E@8GS'? .NE8 .FF ES'ABLIS;ME N' F1%000 F1%000 F:%000 F5%000 F?5%000 M.N';L* )EC&))IN G C;A)G F200 F200 F500 FA00 F1%000 A(AILABILI' * FIB)E 4I)ELES L.NG S 'E)M SA'ELLI 'E ;-& ;-& ;-& ;-& ;-& ;-& ;-& ;-& ;-& ;-& ;-& ;-& FI)S' )ELEAS E SA'ELLI' ;-& ;-&
66
6 August 2012
NBN Co. Ltd. 7+2+6+1 A(C -ro9ile -rice
.,er ti!e% NBN Co e2pects the cost o$ band*idth tiers to be reduced in no!inal dollar ter!s as the speed in /bps% a,eraged across all net*or0 -nd-9sers% increases. This intention aligns the e2pectation that de!and $or $aster ser,ices *ill rise o,er ti!e as -nd-9ser beha,iour e,ol,es and applications de,elop% *hile a$$ordabilit needs to be !aintained. Current proKections $ollo* a si!ilar traKector Corporate Plan. to those outlined in the 2011-1?
!%hi&it 8'8( #orecast ALC -ricing 2ecline -ro)ile (/ominal 2ollars)

>-rice "er Month? F160 F1A0 F120 F100 F>0 F60 FA0 F20 F0 ?0 60 @0 120 150 1>0 210 2A0 1000GA00 500G200 250G100 100GA0 50G20 25G10 25G5 12G1 Networ A:erage S"eed >M<"s C End8&ser?
A:erage -roduct -ricing <# A:erage Networ S"eed
&ource4 NBN Co &ee $ootnote 1? in relation to $actors a$$ecting -nd-9ser speeds.
7+2+6+2 C(C -ro9ile
-rice
Consistent *ith the 2011-1? Corporate Plan% NBN Co plans to reduce C=C prices as tra$$ic across the net*or0 increases o,er ti!e. The C=C price reduction pro$ile in the 2012-15 Corporate Plan is consistent *ith the 2011-1? Corporate Plan. 5ollo*ing engage!ent *ith the industr % NBN Co has decided to reduce the cost o$ C=C initiall b crediting the cost o$ the $irst 150 /bps in each Connecti,it &er,ing Area "CSA#% up to the point in ti!e *hen construction passes !ore than ?0%000 pre!ises in the C&A. !%hi&it 8'9( #orecast CLC -ricing 2ecline -ro)ile (/ominal 2ollars)
>ECMB-SC Month?
C(C -ricing B# A:erage $ata &sage >No!inal?
F25 F20 F15

2012 - 15 CP
F10 F5 F0 ?0 120 210 ?00 ?@0 A>0 5:0
A:erage data usage across networ >GB C Month C End8&ser?
&ource4 NBN Co
6:
6 August 2012
NBN Co. Ltd. 7+2+, Fi@ed 4ireless and Satellite )e:enues The -2hibit >-10 belo* illustrates the $orecast e,olution o$ 7e,enues $ro! 5irst 7elease &atellite to Long Ter! &atellite and the $orecast 7e,enues $ro! the 5i2ed (ireless net*or0. !%hi&it 8'1+( #orecast #i%ed =ireless and 5atellite Revenues (1 4illion) (/ominal 2ollars)
>EM? F150 F120 F@0 F60
Long Ter! &atellite Access &er,ice 5irst 7elease &atellite
Fi@ed 4ireless and Satellite )e:enue >No!inal?

5i2ed (ireless
F?0 F0 5;2011
2011 - 1? CP
5;201?
5;2015
5;201:
5;201@
5;2021
5;202?
5;2025
5;202:
&ource4 Co
NBN
7+2+7 Mo<ile Bac haul NBN Co has recei,ed re)uests $ro! the industr to de,elop products that are suitable $or use as !obile bac0haul. This *ould allo* the utilisation o$ NBN Co1s 5ibre in$rastructure $or connecti,it bet*een !obile base stations and an operator1s core net*or0. NBN Co is considering these re)uests and e,aluating *hether to de,elop products suitable $or use as !obile bac0haul. As no decision has et been !ade% an potential i!pact $ro! these ser,ices has not been included in the 2012-15 Corporate Plan. 7+2+6 Co!!unit# >Second -ort? Ser:ices -ort &tilisation
NBN Co continues to e,aluate the potential $or additional 7e,enue $ro! pro,ision o$ connections on behal$ o$ pro,iders o$ co!!unit ser,ices. 6t is en,isioned that National% &tate and Local go,ern!ents% in addition to pri,ate pro,iders% *ill loo0 to i!pro,e ser,ice deli,er and dri,e cost reductions through use o$ the NBN to deli,er ser,ices such as e-health% aged care and e-education to -nd-9sers. This could be done through utilisation o$ the &econd port on the Net*or0 Ter!ination 8e,ices "N'$s# to pro,ide ser,ices to -nd-9sers. 6nitial e,aluations suggest that should these ser,ice !odels be adopted re,enues could be increased.
6>
6 August 2012
NBN Co. Ltd. 7+2+10 A:erage )e:enue "er End8&ser >A)-&? The A7P9 per !onth $orecast in the 2012-15 Corporate Plan re$lects the co!bined i!pact o$ the changes discussed in &ection >.2% Revenue -lan$ The o,erall pro$ile o$ A7P9 is si!ilar to that assu!ed in the 2011-1? Corporate Plan o,er the period 5;2016 to 5;20A0% but *ith a lo*er initial $orecast in the earl ears% as illustrated in -2hibit >-11% !ainl due to the C=C transitional arrange!ents. !%hi&it 8'11( AR-D (1 B 4th)
>E C !th? F120 F100 F>0 F60 FA0 F20 F0 5;2012 5;2015 5;201> 5;2021 5;202A 5;202: 5;20?0 5;20?? 5;20?6 5;20?@ &ource4 NBN Co 2011 - 1? CP 2012 - 15 CP
Fi<re A)-& >EC!th?
6@
6 August 2012
NBN Co. Ltd.
:0
6 August 2012
NBN Co. Ltd.
6 FINANCIAL F.)ECAS'S
6+1 Su!!ar# Financial Forecasts
!%hi&it 9'1( 5elected #orecasts and -roMections )or the #i&re /etwor0 Construction -eriod (#A*+11 < #A*+*1) Forecasts and -ro=ections Co:erage Fi<re Networ Construction -eriod 5e# Metrics >)ounded? >No!inal 1? !illion pre!ises co,ered b 5;2021 in line *ith the co,erage obligations set out in the &tate!ent o$ -2pectations. 206%000 0!s o$ +igabit-capable Passi,e .ptical Net*or0 "G-.N# "ph sical distances#. 25N o$ pre!ises in the Local net*or0 to be passed aeriall .
F''- Networ Characteristics
Green9ields
NBN Co to pass all +reen$ields de,elop!ents b the end o$ the deplo !ent% representing 2 !illion pre!ises in the 5ibre $ootprint. F?:.A billion total $orecast Capital -2penditure to the end o$ the 5ibre Construction period "to <un121#. F2?.1 billion total $orecast 7e,enues to 5;2021. F26.A billion total $orecast .perating -2penditure to 5;2021.
Ca"ital E@"enditure )e:enues ."erating E@"enditure Cu!ulati:e EBI'$A Le:ered Funding

>to F*2021?
F"?.?# billion o$ cu!ulati,e $orecast -B6T8A to be $unded prior to the end o$ the 5ibre Construction period "to <un121#. -sti!ate o$ F?0.A billion o$ pea0 +o,ern!ent e)uit . -sti!ate o$ F1?.: billion o$ pea0 debt $unding. Together% a total $orecast pea0 $unding re)uire!ent o$ FAA.1 billion "including $unding costs#. :.1N.
Internal )ate o9 )eturn >I))?

&ource4 NBN Co
:1
6 August 2012
NBN Co. Ltd. !%hi&it 9'*( #orecast 5ummary #inancials (/ominal 2ollars)
Su!!ar# Financials 'otal >F*2011 to $ec 2020? 113262 73060 667 226 73276 1636,0 "2A%>1@# >23726? "2A#N "1?%?2># "2%0@@# >11322,? "?5%6>1 # "?0# >223616? 'otal >F*2011 to F*2021? 123202 73110 6,2 202 73,21 203017 "26%?@A# >0300,? "1A# N "12%650# "2%5>0# >113200? "?:%?5># ">0# >203012? /une *E 'otal -re!ises -assed 8 Fi<re >A000s? 'otal Connected 8 Fi<re >A000s? -re!ises Co:ered 8 Fi@ed 4ireless D Satellite >A000s? 'otal Connected 8 Fi@ed 4ireless D Satellite >A000s? 'otal Connected >A000s? 'otal )e:enue Total .perating -2penditure EBI'$A -B6 T8A /argin -B6 T Net Cash 6 nterest "5unding Costs# EB' 'otal Ca"ital E@"enditure /o,e!ent in (or0ing Capital Cash Ta2 Le:ered Free Cash Flow +o,ern!ent 5unding 8ebt 5unding 'otal Funding 8ebt G -B6T8A 8ebt G Total 5unding
F*2011 17 1 161 0 1 8 "??:# >00,? N/ "?56# ?? >020? "A6?# ?> >,26? >23060? 1%?62 13062 22366, 0.0 2 0.0N
F*2012 06 2 1,2 10 12
F*2010 021 12 020 07 62
F*2012 1300, 27, 0,2 62 111 23612 13111 ,12 100 13611
F*2016 23621 03006 60, 121 03171
F*201, 632,6 23021 621 161 23102
F*2017 ,3707 13162 602 161 13,71 63270 63661 627 206 63601
F*2016 103,70 ,360, 661 216 ,372,
F*2021 123202 73110 6,2 202 73,21 631,1 "?%151# 23100 A@N 1%?55 "@61# "?%?55# "@@# >13061? ?0%A00 1?%65? A.5 2 ?1.0N
F*2027 10326, 103010 13011 000 103010 63,66 "2%A?:# ,3002 :5N 5%5AA "1>># 13016 "1%5?6# "@0# "1%60:# 03611 1@%2@: 1%6:> 2036,1 0.2 2 >.0N
F*2020 113201 113262 13171 066 113760 12316, "?%?51# 113226 ::N @%A@@ 1%215 103,11 "2%@?@# "61# "?%21A# 63227 8 0.0 2 N/
2 17 120 126 13026 23271 03221 23200 1316, "521# "1%0@?# "1%:::# "?%62># "?%?@A# "?%?51# "?%201# "2%@0?# >130,6? >116? >1361,? >230,1?"?%0?:# >23272? >13110? >100? 666 03022 N/ N/ N/ "1:0#N "A@#N "A#N 2AN "AA@#N "5>@# "1%?2># "2%0:0# A1N "?%1@0# "2%22A# "1%A10# "?%015# "A15# 5@1 60 55 :2 >? "1# "?AA# >13,12? "615# ":>6# >126? >132,0? >13667? >23602? >03161?"1:6# >23200? >13000? >162? ">>># "?%1@1# "?%@A6# "A%@20# "A%22A# "?%@>6# "?%:60# 062 "5%016# "?%610# "251# "2>A# "?11# 1@? A@5 2A1 @> "10?# "@A# - >,3211? - >,3212? >13111? >03,1,? >13260? >13,6,? >23,,2? >032,6? 2%>?2 23702 223010 0.0 2 0.0N :%50A 1?%62? 20%2>: 52? ,3102 103620 203710 0.0 2 0.0 2 "0.2#2 0.0N 0.0N 2.5N 25%0A: 2>%@A@ ?0%A00 ?0%A00 ?0%A00 2%00> ?%>16 023,61 6%61@ 0,3016 10%02? 2,3011 203220 "0.@#2 "?.A#2 "50.@#2 10.0 2 5.> 2 :.AN 11.6N 1:.@N 2A.>N 2>.>N
&ource4 Co
NBN
6+2 Sco"e 9or the 2012811 Cor"orate -lan The 2012-15 Corporate Plan retains the ?0 ear ti!e$ra!e used in the 2011-1? Corporate Plan% *ith the inclusion o$ actuals $or the $inancial ear 2010 E 2011 and the pre-audited <une $igures $or $inancial ear 2011 E 2012. 7etaining the sa!e end point $or the long range e2plicit $orecasting "?0 <une 20A0# *ill allo* Ili0e-$or-li0e1 co!parisons as subse)uent Corporate Plans are produced. As noted in &ection 1.1% 3ntroduction to the *+1*'1. Corporate -lan% the 2012-15 Corporate Plan integrates both the Telstra 8e$initi,e Agree!ents and the .ptus '5C Agree!ent e2ecuted on 2? <une 2011. The 2011-1? Corporate Plan re$lected NBN Co1s best esti!ate o$ the $inal agree!ents at the ti!e based on the 5inancial 'eads o$ Agree!ent *hich predated the Telstra 8e$initi,e Agree!ents. The 2011-1? Corporate Plan did not include an potential i!pact o$ an agree!ent *ith .ptus to !igrate its '5C subscriber base. !%hi&it 9',( 4oving )rom the *+11'1, Corporate -lan to the *+1*'1. Corporate -lan
Business Model -eriod Co:eredK 'elstra $eal Sco"eK ."tus $eal Sco"eK 2011810 Cor"orate -lan 5;2011 E 5;201? Telstra 5inancial 'eads o$ Agree!ent "<une Not included Plan assu!es no .ptus subscribers !igrate No 8eal 2012811 Cor"orate -lan 5;2012 E 5;2015 Telstra 8e$initi,e Agree!ents "<une .ptus '5C &ubscriber Agree!ent "<une 2011# -
Co!"ared toK
:2
6 August 2012
NBN Co. Ltd.
Business Model -olic# $ecisions C S.E )eBuire!entK
2011810 Cor"orate -lan Preli!inar assess!ent o$ Points o$ 6nterconnect "-oI# 8ecision Preli!inar assess!ent o$ +reen$ields obligations Batter Bac0up to all Connected 5ibre -nd9sers
2012811 Cor"orate -lan Bno*n i!pact to date o$ Po6 decision Bno*n i!pact to date o$ +reen$ields obligations Batter Bac0up I/ust .pt1 *ith an assu!ed 50N ta0e-up Anticipated technolog upgrades o$ 5i2ed (ireless O Long Ter! &atellite net*or0s 5ibre net*or0 5ull Co,erage o$ Band 1 O 2 Public 6n$or!ation on /igration "-IM# 9&. Pa phones
&ource4 NBN Co
6+0
Forecast 5e# Financial Indicators
-2hibit @-A illustrates the $orecast 0e $inancial indicators $or NBN Co% including the proKect $orecast 6nternal 7ate o$ 7eturn "I))#. The 2012-15 Corporate Plan $orecast return o$ :.1N is si!ilar to the $orecast return in the 2011-1? Corporate Plan. !%hi&it 9'7( #orecast 8ey #inancial 3ndicators )or *+11'1, Corporate -lan vs$ *+1*'1. Corporate -lan (/ominal 2ollars)
5e# Financial Indicators 2011 8 10 C2012 8 11 C"Fbn# F>.0bn F6.0bn FA.0bn F2.0bn
Cape2 Total
2012 8 11 C-
677 Pa bac0 ;ear Total 7e,enues "to end o$ 5;2021# Total 7e,enues "to end o$ 8ec320# Total Cape2 "to end o$ 5;2021# Total Cape2 "to end o$ 8ec320# .pe2 "to end o$ 5;2021# .pe2 "to end o$ 8ec320# Pea0 5unding Pea0 +o,ern!ent -)uit Pea0 8ebt -B6T8A Positi,e -B6T Positi,e -BT Positi,e N
:.0
:.1N 5;20? ? F2?.1 bn F20.0 bn F?:.A bn F?5.: bn F26.A bn F2A.> bn FAA.1 bn F?0.A bn F1?.: bn 5;201 @ -F6.0bn -F>.0bn F0.0bn -F2.0bn -FA.0bn
Le,ered 5ree Cash 5lo* -B6T8A
5;20? ? F2?.: bn F20.> bn F?:.? bn F?5.@ bn F2?.2 bn F21.> bn FA0.@ bn F2:.5 bn F1?.A bn 5;201 > 5;202 0
5;202 -F10.0bn 0 5;202
&ource4 NBN Co
5;2011 5;201? 5;2015 5;201: 5;201@ 5;2021 5;202? 5;2025 5;202:
:?
6 August 2012
NBN Co. Ltd. 6+2 Co!"arison to 2011810 Cor"orate -lan
!%hi&it 9'.( 8ey 2i))erences &etween *+1*'1. Corporate -lan and *+11'1, Corporate -lan F''- -re!ises -assed -ro9ile >O Millions? F''- -re!ises Connected -ro9ile >O Millions?
-re!ises >M? 16 1A 12 10 > 6 A 2 0 5;2011
F''- -re!ises -assed -ro9ile >-re!ises in Millions?

2012 - 15 CP 2011 - 1? CP
-re!ises >M? 16 1A 12 10 > 6 A 2 0 5;2011
F''- -re!ises Connected -ro9ile >-re!ises in Millions?

2012 - 15 CP 2011 - 1? CP
5;201? 5;202:
5;2015
5;201:
5;201@
5;2021
5;202?
5;2025
5;201?
5;2015
5;201:
5;201@
5;2021
5;202?
5;2025
5;202:
F''- )e:enue -ro9ile >No!inal $ollars?

>E<n? F12.0 F10.0 F>.0 F6.0 FA.0 F2.0 F0.0 5;2011
Ca"e@ -ro9ile >No!inal $ollars?

>E<n? F12.0 F10.0 F>.0 F6.0 FA.0 F2.0 F0.0 5;2011
F''- )e:enue -ro9ile >E Billion in No!inal $ollars?

2012 - 15 CP 2011 - 1? CP
Ca"e@ -ro9ile >E Billion in No!inal $ollars?

2012 - 15 CP 2011 - 1? CP
5;201?
5;2015
5;201:
5;201@
5;2021
5;202?
5;2025
5;202:
5;201?
5;2015
5;201:
5;201@
5;2021
5;202?
5;2025
5;202:
EBI'$A -ro9ile >No!inal $ollars? $ollars? EBI'$A -ro9ile >E Billion in No!inal
>E<n? F>.0 F6.0 FA.0 F2.0 F0.0 -F2.0 -FA.0 -F6.0 -F>.0 5;2011 5;201? 5;2015 5;201: 5;201@ 5;2021 5;202? 5;2025 5;202:
EBI'$A Less Ca"e@ -ro9ile >No!inal

>E<n? F>.0 F6.0 FA.0 F2.0 F0.0 -F2.0 -FA.0 -F6.0 -F>.0 5;2011 5;201? 5;2015 5;201: 5;201@ 5;2021 5;202? 5;2025 5;202:
$ollars?
EBI'$A less Ca"e@ -ro9ile >E Billion in No!inal $ollars?

2012 - 15 CP 2011 - 1? CP
2012 - 15 CP 2011 - 1? CP
&ource4 NBN Co
:A
6 August 2012
NBN Co. Ltd. 6+1 $e"lo#!ent -ro9ile The 2012-15 Corporate Plan incorporates the re,ised deplo !ent $orecasts and the 6 !onth e2tension to <une 2021. 6t $orecasts that 1? !illion pre!ises *ill be passed or co,ered b NBN Co b the end o$ 5;2021 "100N o$ pre!ises across all net*or0s#. B the end o$ 5;2015% NBN Co $orecasts passing or co,ering ?.: !illion pre!ises% o$ *hich 2.@ !illion *ill be *ith 5ibre. !%hi&it 9'6( #orecast -remises -assed and Connected &y #A*+*1
At end o9 F*2021 5TTP 5i2ed (ireless O &atellite .:erall -re!ises -assedCCo:ered >A000s? 12%202 @:A 1031,6 Co:erag e @?N :N 100M -re!ises Connected >A000s? >%51? 2?2 73,21 'a e8u" >M o9 "re!ises "assedCco:ere d? :0N 2AN 66M
&ource4 Co
NBN
6+6 '#"e o9 $e"lo#!ent 9or the Fi<re Networ 6+6+1 F''Networ G-.N
The 2012-15 Corporate Plan proKects that the 5TTP net*or0 *ill be constructed b passing !ore than 206%000 0!s o$ ph sical net*or0 distance "based on net*or0 A2 con$iguration and co,ered road distances o$ 1A>%000 0!s#. 25N o$ the pre!ises are e2pected to be passed aeriall in the Local net*or0% representing ?5%000 0!s o$ aerial deplo !ent. 6+, Ca"ital E@"enditure !%hi&it 9'7( #orecast Capital !%penditure (1 4illion) (/ominal 2ollars)
Ca"ital E@"enditure /une *E "F !illion# 5ibre and Transit 5i2ed (ireless O &atellite .ther Cape2 'otal Ca"e@ 101 1?0 2?2 260 F*2012 F*2011 A2> 12? ??: 777 F*2010 F*2012 F*2016 F*2020 ?%>11 A6? 6A6 23620 F*201, F*2017 F*2016 F*202 1 2%@2? 22 A10 03011 F*202 7 :0? 1: >1: 13106 F*202 0 1%6?6 12 1%2@1 23606
1%65@ 6?? >@> 03161
2%61A :2? 60@ 03626
?%5:1 :>@ 656 13016
?%5@? @5 5?6 23222
?%AA6 55 A>5 03676
?%1:6 :: 50: 03,60
?%156 2? A?2 03610
&ource4 Co
NBN
The total Capital -2penditure $ro! 5;2011 to the end o$ 5;2021 in no!inal ter!s is $orecast to be F?:.A billion. This represents the cost o$ co!pleting the 5ibre% 5i2ed (ireless and &atellite net*or0s to pro,ide 100N national co,erage% *ith 66N o$ pre!ises connected b the end o$ 5;2021 across all three net*or0s. The F?:.A billion total Capital -2penditure $orecast to the end o$ the Construction period is ?.@N higher than the 2011-1? Corporate Plan at F?5.@ billion. This net increase is the result o$ a series o$ adKust!ents% including4 The incorporation Agree!ents. o$ the Telstra 8e$initi,e
The incorporation Agree!ent4

A2
o$
the
.ptus
'5C
Co,ered road distances ha,e been used as inputs to the net*or0 con$iguration !odel% *hich !ultiplies the road distances b a $actor depending on the t pe o$ deplo !ent "aerial ,s. underground# and the localisation o$ these distances in the 5ibre net*or0 "Local% 8istribution#.
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6 August 2012
NBN Co. Ltd. o Additional connection costs associated *ith the !igration o$ an initial addressable nu!ber o$ 0.5 !illion .ptus '5C subscribers.
The ti!ing e$$ect o$ the re,ised deplo !ent pro$ile and the 6 !onth e2tension o$ the 5TTP rollout. 8ecreases in esti!ated e)uip!ent costs arising $ro!4 o Con$ir!ation o$ net*or0 architecture "I'#"e 2 Architecture1#L o Contract negotiations *ith suppliers "!ost o$ the e)uip!ent $or 5ibre% 5i2ed (ireless and the Long Ter! &atellite &er,ice "L'SS# is no* under contract#L and o 6nternal rather than e2ternal NT8s. 6ncreased pro,isioning $or the 5ibre and Transit Net*or0s4 o Additional construction costs $ro! higher esti!ates o$ net*or0 distances than pre,iousl $orecastL o A re,ie* o$ the construction costs in the Transit net*or0 "such as Transit !a0e-read *or0s#% the Local net*or0 and the 8istribution net*or0 "including design% aerial deplo !ent% assurance and !aintenance#L and o A positi,e e$$ect $ro! a re,ie* o$ li0el ph sical li$eti!e o$ net*or0 e)uip!ent. 6ncreased Custo!er Connect costs4 o A !o,e to the i!ple!entation o$ a IBuild 8rop1 !odel instead o$ a I8e!and 8rop1 !odel% in the conte2t o$ the agree!ent *ith Telstra to deco!!ission the copper net*or0. This includes increased esti!ates o$ the costs to noti$ and access properties as *ell as the costs to install a lead-in cable and net*or0 ter!ination e)uip!entL o Additional costs to design and install in-building cables inside /ulti-8*elling 9nits "M$&s#L and o 6ncreased costs to acti,ate -nd-9ser pre!ises. Additional costs pro,isioned to deli,er 6n$or!ation Technolog "I'# s ste!s and in$rastructure as *ell as to support Net*or0 7eleases. 6!ple!entation o$ Polic 8ecisions4 o Additional costs to ser,ice de!and in Ne* 8e,elop!ents% as described in &ection 6.1.2% /ew 2evelopmentsL o 6ntroduction o$ anticipated technolog Ter! &atellite $ootprintL upgrades in the 5i2ed (ireless and Long
o Additional costs in the 5ibre $ootprint $ro! the 5ibre net*or0 $ull co,erage o$ Band 1 and Band 2L and o Additional pro,isioning o$ costs to connect Public 6nterest Pre!ises "-I-s# and pro,ide 9ni,ersal &er,ice .bligation "&S.# pa phone connecti,it .
:6
6 August 2012
NBN Co. Ltd. 6+7 ."erating E@"enditure
!%hi&it 9'8( #orecast "perating !%penditure (1 4illion) (/ominal 2ollars)

."erating E@"enditure F*2011 "F /illion# 8irect .ther 'otal ."e@ 6 ??1 00, :2 AA@ 121 ?@? :00 13060 1%0@> 6:@ 13,,, 2%1:A :?0 23600 2%>62 :66 03627 2%5@: :@: 03062 2%5?6 >1A 03011 2%?6@ >?2 03201 2%16> >6@ 0300, 2%26> >>? 03111 1%A:1 @66 2320, 2%0?: 1%?1A 03011 F*2012 F*2010 F*2012 F*2011 F*2016 F*201, F*2017 F*2016 F*2020 F*2021 F*2027 F*2020
&ource4 NBN Co
The 2012-15 Corporate Plan re$lects changes in assu!ptions and operational deli,er !odels $or4 6ncreased usage o$ Telstra 8ar0 5ibreL 6ncreased usage o$ Telstra e2changes through access to additional )uantities o$ 7ac0 &paceL 6nclusion o$ !igration pa !ents to .ptus as part o$ the .ptus '5C Agree!entL A re,ie* o$ the costs associated *ith net*or0 aug!entation and restoration acti,ities and other in$rastructure-related .perating -2penditureL Additional in,est!ent in headcount to support4 o The deli,er areas o$ Planning O 8esign "production o$ Net*or0 8esign 8ocu!ents "N$$s##% Construction and Net*or0 .perationsL o The Co!!unit and 7ollout -ngage!ent $unctions in order to !eet 7eco!!endation 5our o$ the &econd <oint Co!!ittee on the NBN "/CNBN# A? 7eport L
6ncreased le,el o$ indirect costs $ro! sta$$ increases as *ell as other +eneral and Ad!inistration costsL and 6!ple!entation o$ Polic 8ecisions4 o Additional .perating -2penditure re)uired to !eet Ne* 8e,elop!ents de!and in geographicall dispersed and s!all areas. Ne* 8e,elop!ents o$ 100 or !ore pre!ises need to be ser,iced ahead o$ NBN Co passing these areas% resulting in increased costs $ro! !anaged connecti,it ser,ices "bac0haul lin0s# leased ahead o$ NBN Co1s 8ar0 5ibre connecti,it being in placeL An esti!ate that NBN Co% as a carrier% *ill be liable $or a share o$ the Teleco!!unications 9ni,ersal &er,ice /anage!ent Agenc "'&SMA# costs to ad!inister the 9ni,ersal &er,ice .bligation "&S.#. 6t is anticipated that this *ill be charged to NBN Co b *a o$ a le, based on re,enueL NBN Co pro,iding pa phone connecti,it L and
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6 August 2012
NBN Co. Ltd. o Additional costs pro,isioned $or the !ar0eting and e2ecution o$ a Public 6n$or!ation on /igration "-IM# ca!paign o,er the deplo !ent period% si!ilar to pre,ious co!!unications e$$orts put in place during the analogue s*itcho,er $or broadcasters. These costs ha,e been o$$set b the re!o,al o$ speci$ic pro,isions $or upta0e incenti,es contained in the 2011-1? Corporate Plan. Additional 6T & ste!s and Net*or0 7eleases costs. 6+6 4or ing Ca"ital The 2012-15 Corporate Plan $actors in esti!ates $or *or0ing capital. (or0ing capital is not $orecast to be signi$icant. 6+10 'a@ation 6+10+1 'a@ Inco!e
NBN Co *ill incur signi$icant inco!e ta2 losses in the $irst 11 ears o$ its operations "$ro! 5;2010#% and it is assu!ed that these losses *ill be carried $or*ard and o$$set against $uture pro$its. NBN Co e2pects to start utilising brought $or*ard ta2 losses in 5;2021. A signi$icant change in o*nership "50N or !ore# *ould re)uire NBN Co to satis$ certain continuit o$ business rules in order to continue to carr $or*ard past losses. NBN Co e2pects that the !aKorit $or ta2 purposes. o$ costs incurred *ill be deductible or depreciable
NBN Co has assu!ed a corporate inco!e ta2 rate o$ ?0N throughout the $orecast period. 6+10+2 .ther 'a@es and )elated Charges +&T is not e2pected to create an particular additional costs $or NBN Co% other than general cost o$ co!pliance. All unit costs and product pricing re$erenced *ithin the 2012-15 Corporate Plan are e2- +&T. The cost o$ other signi$icant ta2es "e.g. pa roll ta2% superannuation guarantee contributions# has been $actored into the base case using the rates currentl legislated. 6+11 Co Funding NBN
NBN Co has been $unded b successi,e e)uit inKections totalling F2%>?2 !illion "as o$ ?0 <une 2012#% including F1%A:0 !illion in the 5;2012 $inancial ear. .n 22 <une 2011% NBN Co entered into an -)uit 5unding Agree!ent "NBN Co EBuit# Agree!ent# *ith the Co!!on*ealth. The NBN Co -)uit Agree!ent $or!alises the Australian +o,ern!ent1s intention to pro,ide e)uit to $und the rollout o$ the NBN% *ith such $unding being conditional on the annual appropriation process. The NBN Co -)uit Agree!ent stipulates that the Co!!on*ealth intends to pro,ide e)uit $unding to NBN Co in accordance *ith the NBN Co -)uit Agree!ent in order to pro,ide $inancial stabilit $or the NBN Co and con$idence that NBN Co can pursue the progra!!es necessar to
achie,e the Co!!on*ealth1s polic obKecti,es as set out in the &tate!ent o$ -2pectations "S.E#.
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6 August 2012
NBN Co. Ltd. 6+11+1 $eter!ining NBN CoHs Funding )eBuire!ent NBN Co1s $unding re)uire!ent is dri,en b the $orecast -B6T8A and Capital -2penditure pro$iles% including *or0ing capital. NBN Co1s $orecast $ree cash $lo* pro$ile is sho*n in the -2hibit @-@. !%hi&it 9'9( / / Co>s #orecast Dnlevered #unding Re@uirement (1 illion) (/ominal 2ollars)
>E<n? FA5.0
NBN Co Funding )eBuire!ent >100M EBuit#?

7ising $unding re)uire!ent during construction period
8eclining $unding re)uire!ent as re,enues gro*
F?6.0 F2:.0
Closing -)uit
F1>.0 F@.0 F0.0 5;2011
5;2016
5;2021
5;2026
5;20?1
&ource4 Co
NBN
Total unle,ered $unding re)uire!ent o,er the deplo !ent period is $orecast to pea0 at FA0.A billion b 5;2021. 6n a scenario *here NBN Co !eets part o$ its $unding re)uire!ent b raising debt% e2ternal $unding costs are proKected to add an additional $unding re)uire!ent o,er the deplo !ent period% *ith pea0 total "le,ered# $unding re)uire!ent at FAA.1 billion at the end o$ 5;2021.
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6 August 2012
NBN Co. Ltd. 6+11+2 -ro9ile o9 Long 'er! Funding Scenarios The !odelling o$ the long ter! $unding pro$ile assu!es that NBN Co *ill see0 e2ternal $unding $ro! ban0s and $inancial !ar0ets *ithout e2plicit guarantees $ro! the &hareholder /inisters% as earl as possible. 5or the purpose o$ the 2012-15 Corporate Plan% it is assu!ed that pea0 +o,ern!ent -)uit *ill be F?0.A billion. 6n this scenario% NBN Co has e!bedded debt $unding costs into the $inancial !odel. 6t is e2pected that total e2ternal $unding *ould contribute up to ?1N o$ the total $unding to 5;2021. !%hi&it 9'1+( / / Co>s #orecast #unding -ro)ile (2e&t and !@uity) to #A*+*8 (1 illion)
>E<n? FA5. 0 F?6.0
Total 5unding
-ea Funding )eBuire!ent
F2:.0
+o,t -)uit
F1>.0
8ebt
F@.0 F0.0 5;2011
5;201?
5;2015
5;201:
5;201@
5;2021
5;202?
5;2025
5;202:
&ource4 Co
NBN
Pea0 debt $unding is $orecast at F1?.: billion in 5;2021% *ith initial debt-raising assu!ed in 5;2015. A,erage issuance per annu! *ould a!ount to F2 billion o,er the : ear period "5;2015 to 5;2021 inclusi,e#. As no assurances can be gi,en that such debt-raising re)uire!ents *ill be !et% the capital structure and debt issuance decisions *ill be deter!ined at the ti!e b the &hareholder /inisters.
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6 August 2012
NBN Co. Ltd. 6+11+0 Funding the F*2012 to F*2011 -eriod -2hibit @-11 pro,ides a $orecast e)uit $unding dra*do*n pro$ile "cashbased#. !%hi&it 9'11( / / Co>s #orecast !@uity #unding Re@uirement (1 4illion) (/ominal 2ollars)N 2011 8 10 C2012 8 11 CCu!ulati:e >E Annual >E Million? Cu!ulati:e >E *ear Ending Million? Million? Forecast EBuit# Forecast EBuit# Funding Forecast EBuit# 00 Funding )eBuire!ent Funding /un )eBuire!ent Grossed )eBuire!ent e 2010 "Actual# ?12 ?12 ?12 2011 "Actual# 2012 201? 201A 2015 2016 201: 201> 2%100 "$# A%>00 @%200 15%>00 1@%@00 2?%500 26%:00 2:%500 1%050 1%A:0 A%6:2 6%11@ 6%66A A%:60 ?%@02 1%A51 1%?62 2%>?2 :%50A 1?%62? 20%2>: 25%0A: 2>%@A@ ?0%A00
&ource4 NBN Co J 5orecast -)uit 5unding 7e)uire!ent is calculated assu!ing e2ternal $unding "debt# *ill be a,ailable to NBN Co b 5;2015.
The anticipated total $unding re)uire!ents "debt and e)uit # a!ount to F1@%AA> !illion $or the period $ro! <ul 2011 to <une 2015 "5;2012-5;2015#% o$ *hich e)uit *ill represent F1>%@25 !illion. 6+11+2 Lia<ilities 'er!ination
The NBN Co -)uit 5unding Agree!ent bet*een the Australian +o,ern!ent and NBN Co co!!its the Australian +o,ern!ent% in the e,ent o$ a ter!ination o$ the NBN rollout% to pro,ide su$$icient $unds to NBN Co to !eet its direct costs arising $ro! the ter!ination. The NBN Co -)uit Agree!ent ter!inates on ?0 <une 2021.
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10 )IS5 MANAGEMEN'
10+1 )is S#ste! Manage!ent
NBN Co has established an enterprise-*ide ris0 !anage!ent s ste! to $acilitate the identi$ication o$ signi$icant business ris0s and i!ple!entation o$ appropriate ris0 !itigation or treat!ent plans and !onitoring processes. The s ste! is built upon the pre!ise that all e!plo ees ha,e responsibilit $or ris0 !anage!ent in their Kob areas. !%hi&it 1+'1( !nterprise Ris0 4anagement 5ystem
Co!!unicate and Consult 4ho are our sta eholders3 what are their deli:era<les and how shall we in:ol:e the!P
Esta<lish the conte@t 4hat do we need to ta e into account and what are our deli:era<le sP
Identi9# the ris s
Anal#se the ris s
E:aluate the ris s 4hich ris s need treating and our "riorit# 9 or attentionP
'reat the ris s
4hat !ight ha""enP ;ow3 when and wh#P
4hat this will !ean 9or our deli:era<le sP
;ow should we <est deal with the!P
Monitor and )e:iew ;a:e the ris s and controls changedP
)is Manage!ent In9or!ation S#ste!
Adapted $ro! 6&. ?10004200@

&ource4 Co NBN
The approach adopted b NBN Co is consistent *ith the international ris0 !anage!ent standard% Australia G Ne* Vealand &tandard 6&. ?10004200@. NBN Co1s 7is0 /anage!ent Polic de$ines the *a in *hich NBN Co establishes the ris0 conte2t% identi$ies% assesses% anal ses% e,aluates and treats ris0 to e$$ecti,el !anage its business% assign roles and responsibilities $or ris0 !anage!ent. 5ro! this a ris0 register and reporting $ra!e*or0 has been established to $acilitate the process and !eet reporting obligations.
7is0 pro$iles are de$ined and !anaged $or each o$ NBN Co1s business $unctions and !aKor acti,ities. The aggregation o$ the applicable pro$ile $or!s the NBN Co +roup 7is0 pro$ile and the basis $or /anage!ent and Board reporting o$ ris0s and associated !anage!ent processes. 7is0 !itigation actions and treat!ent plans are reported )uarterl to the Board under the $ollo*ing categories4 Corporate Plan 2012-15 >? 6 August 2012
NBN Co. Ltd. &a$et -n,iron!entL and
&trategic "includes technolog % regulator % product% industr #L 5inancial "includes $unding#L and re,enue% cost !anage!ent%
.perational "includes sourcing% construction% net*or0 operations% )ualit and securit #. The ris0 categories% *ith the corresponding li0elihood and i!pact are reported to the Board. The 7is0 /anage!ent Polic that establishes and underpins the ris0 !anage!ent s ste! is re,ie*ed at least annuall and updated as re)uired to re$lect NBN Co1s e,ol,ing needs. This ensures the ris0 !anage!ent s ste! re!ains $it-$or-purpose as NBN Co1s pri!ar acti,ities !o,e through planning and design% to construction and co!!ercial operation. 10+2 )is s Cor"orate -lan
As o$ 2012-15% the Board and /anage!ent o$ NBN Co ha,e identi$ied% a!ong other !atters% the $ollo*ing ris0 areas. These are4
&a$et L Cualit L Telstra Agree!entsL .ptus Agree!entL 8e$initi,e '5C
ConstructionL
7e,enueL .perational & ste!sL Ne* and &upport
8e,elop!entsL "5i2ed
&pectru! (ireless#. Sa9et #
(ith thousands o$ people *or0ing on the proKect in tra$$ic e2posed locations using large !achines or potentiall *or0ing at heights close to po*er lines% the probabilit o$ an incident is high. /itigation include4 strategies
Co!prehensi,e 'ealth &a$et A&A>01G6&. 1A001 standardsL /onthl -2ecuti,e .$$icerL '&- Be !eetingL
and -n,iron!ent ";SE# progra!!e established to
'ealth% &a$et % and -n,iron!ent Co!!ittee re,ie* chaired b
the Chie$
Per$or!ance 6ndicators reported at e,er
Board
&tringent '&- re)uire!ents in all construction contractsL Piloted Progra!!eL &a$e 8ri,er
/aintaining a Ino $ear1 culture% no bla!e $or the reporting o$ incidents and near !isses *ithout inKur L 6ntroducing an eLearning induction progra!!e $or all NBN Co e!plo eesL and Corporate Plan 2012-15 >A 6 August 2012
NBN Co. Ltd. 9se o$ industr e2perts to ad,ise on establishing a 1no bla!e1 sa$et culture across NBN Co. Fualit# The Cualit ris0 lies in product or process $ailures resulting in unacceptable operational per$or!ances. /itigation strategies include4 6!ple!entation o$ a co!prehensi,e Cualit 5ra!e*or0 consistent *ith 6&. @001L 6!ple!entation o$ 6&. 2:001% 6&. 20000 and Capabilit /aturit /odel 6ntegration "CMMI#L 7eporting and re,ie* o$ Cualit per$or!ance at Board and /anage!ent le,el% including the establish!ent o$ a Cualit 6!pro,e!ent CouncilL Cualit Be Per$or!ance 6ndicators and issues re,ie*ed at each 6!ple!entation Co!!ittee !eetingL 6!ple!entation o$ a Correcti,e and Pre,entati,e Actions "CA-A# s ste! to capture and !anage )ualit i!pro,e!ent opportunitiesL 7e)uire!ent speci$ications% )uali$ications and audits $or ,endors and suppliersL 6!ple!entation o$ a Cualit 6nternal Audit Plan and &cheduleL and A staged deplo !ent. 'elstra $e9initi:e Agree!ents The Telstra 8e$initi,e Agree!ents i!ple!entation ris0s include lac0 o$ capacit $or !anage!ent o$ the Telstra 8e$initi,e Agree!ents. /itigation strategies include4 &pecialist tea! appointed to !anage deli,er Agree!ents re)uire!entsL and o$ the Telstra 8e$initi,e
6T s ste!s are currentl being de,eloped to !anage the agree!ent% and to auto!ate interactions *ith Telstra. ."tus Agree!ent The .ptus '5C Agree!ent i!ple!entation ris0s include lac0 o$ capacit to i!ple!ent the .ptus '5C Agree!ent. /itigation strategies include4 &pecialist tea! appointed to !anage i!ple!entation o$ the .ptus '5C Agree!ent. Construction The 0e construction ris0 is associated *ith s ste!atic cost o,erruns in relation to the $orecast cost per pre!ises and is a signi$icant ris0. /itigation strategies include4 Appoint!ent o$ &ilcar% & ntheo% Trans$ield &er,ices and =isionstrea! as deli,er partners based on the 1bench!ar0I !odelL Corporate Plan 2012-15 >5 6 August 2012
NBN Co. Ltd. Abilit to ,alue engineer the design to reduce costL Abilit costsL to cap actual costs ,s. !odelled
8e,elop!ent o$ robust co!!ercial and operational processes *hich de$ine and trac0 unit cost co!ponents as an ongoing !anage!ent toolL and (or0 *ith the construction deli,er partners and rele,ant bodies regarding training $or the NBN rollout *or0$orce. )e:enue s The 0e ris0s to 7e,enue relate to the $ailure to !eet aggregated 7e,enue proKections. The include speed and usageL *ireless substitutionL short ter! lo*er than anticipated ta0e-upL longer ter! i!pact o$ cherr -pic0ing "including Point-to-Point "-2-##L regulated pricing at le,els lo*er than assu!ed $or the purposes o$ the Corporate PlanL and the i!pact o$ bac0haul costs on de!and related to the nu!ber o$ Points o$ 6nterconnect "-oIs#. /itigation include4 strategies
Building out sales channels to support 7etail &er,ice Pro,iders ")S-s# to generate additional de!and and sales pipeline $or ne* entrantsL 7igorous pre-sales% on-boarding process to prepare 7&Ps to be NBN read L 5ostering a (holesale Aggregation /odel to support a range o$ business !odelsL 8etailed strategic !ar0eting plan to pro!ote the NBN ,alue proposition and address co!petition $ro! *ireless substitutionL 8e,elop!ent and lodge!ent o$ a &pecial Access 9nderta0ing "SA&#% to pro,ide regulator certaint $or NBN Co and Access &ee0ersL A Contract 8e,elop!ent Process "C$-# established to !anage the de,elop!ent o$ the longer- ter! (holesale Broadband Agree!ent "4BA#L Product li$ec cle !anage!ent o$ core NBN Co products to ensure ne* opportunities are capturedL Application sponsoring "e.g. 'ealth% -ducation# to sti!ulate -nd-9ser interestL and The inclusion o$ a Public 6n$or!ation on /igration "-IM# ca!paign o,er the deplo !ent period. .S S The .perational &upport & ste!s ".SS# are 0e support s ste!s to the proKect. The .&& pro,ides the capabilities needed to pro,ision% con$igure% !anage and operate the net*or0. 8ela s in deplo !ent o$ these s ste!s are a 0e ris0 to the proKect. /itigation include4 strategies
Contracted 6B/ as Pri!e & ste! 6ntegrator "SI#L and Three *a collaborati,e approach to detailed design% de,elop!ent and testing
in,ol,ing business sta0eholders% deli,er tea!s and ,endors% *ith one &6.
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6 August 2012
NBN Co. Ltd. New $e:elo"!ents The 0e ris0 relating to Ne* 8e,elop!ents is the $ailure to !eet NBN Co1s obligations as in$rastructure pro,ider o$ last resort. /itigation strategies include4 -ngage *ith e2ternal contractors to progress constructionL 8eplo te!porar 5AN sites to ser,ice ne* de,elop!ents ahead o$ per!anent 5AN sitesL and Arrange interi! Transit to each estate directl *ith Transit pro,iders. S"ectru! This 0e ris0 is associated *ith &pectru! ac)uisition $or the 5i2ed (ireless net*or0. /itigation strategies include4 The !aKorit o$ 5i2ed (ireless spectru! re)uire!ents ha,e been secured co!!erciall L and NBN Co is e,aluating alternati,e strategies in the e,ent that the pre$erred spectru! is not a,ailable in areas not co,ered b e2isting co!!ercial agree!ents.
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11 GL.SSA)* .F 'E)MS
Access Aggregatio n )egion >AA)? Access See er Access (irtual Circuit >A(C? Aggregation Node >AN? As#!!etric $igital Su<scri<er Line >A$SL? Australian Broad<and Guarantee >ABG? A:erage )e:enue -er &ser >A)-&? Basis -oints ><"s? Brown9ields GBuild $ro"H Business Su""ort S#ste! >BSS? Business8to8 Business >B2B? Ca"ital E@"enditur e >Ca"e@? Co!!ence!ent $ate Co!"ound Annual Growth )ate >CAG)? Connecti:it # Ser:ing Area >CSA? The area ser,ed b a Point o$ 6nterconnect "-oI# located in an Aggregation Node "AN# and connected ,ia Transit 5ibre to regional 5ibre Access Node "FAN# sites. The bac0haul $ro! the regional 5AN to the AN is ter!ed the Transit net*or0. A custo!er ac)uiring NBN Co *holesale ser,ices *ith the intention to suppl broadband ser,ices to 7etail &er,ice Pro,iders ")S-s# or -nd9sers. The band*idth allocated to the -nd-9ser pre!ises. A $acilit that pro,ides a Point o$ 6nterconnect "-oI# to 7&Ps G (&Ps $or an Access Aggregation 7egion "AA)#% co!prising a nu!ber o$ regional 5AN sites. Note that an AN *ill also ha,e a co-located 5AN site $or its local area. A technolog $or deli,ering high-speed data trans!ission o,er a copper phone line. As the na!e suggests% it pro,ides di$$erent do*nstrea! "net*or0 to -nd- 9ser# and upstrea! "-nd-9ser to net*or0# band*idth. The Australian Broadband +uarantee is an Australian +o,ern!ent initiati,e designed to help residential and s!all business pre!ises access a high )ualit broadband ser,ice. The progra!!e targets pre!ises unable to access co!!ercial !etropolitan-co!parable ser,ices% particularl those li,ing in re!ote parts o$ Australia. The total re,enue di,ided b the nu!ber o$ subscribers. .ne Basis Point is e)ual to 1G100 o$ 1N. Pre-e2isting pre!ises that *ill be co,ered b either 5ibre% 5i2ed (ireless or &atellite ser,ices. (here the connection $ro! the street to the pre!ises is carried out *hen the distribution and local seg!ents o$ the 5ibre net*or0 are being built. The set o$ s ste!s that *ill pro,ide NBN Co *ith the capabilities to !anage Access &ee0ers% ta0e orders% process bills and collect pa !ents. Co!!erce transactions bet*een businesses.
th
The cost o$ purchasing tangible and intangible assets. : /arch 2012% being the date that the Telstra 8e$initi,e Agree!ents beca!e *holl unconditional. T;ear on ;earU gro*th rate% o,er a speci$ied period o$ ti!e.
A logical collection o$ -nd-9ser Pre!ises de$ined b NBN Co. -ach C&A has appro2i!atel the sa!e nu!ber o$ -nd-9ser Pre!ises.
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Connecti:it # (irtual Circuit >C(C? Construction Co!!enced
8eter!ines the capacit re)uired to ser,e each C&A. The C=C is an aggregation o$ the A=Cs $ro! the -nd-9ser pre!ises bac0 to the Po6. Contract instructions ha,e been issued together *ith the initial Net*or0 8esign 8ocu!ent "N$$# so that construction partners can co!!ence *or0 on the detailed design% $ield inspections and rodding G roping acti,ities in an 5&A/. This is $ollo*ed b the release o$ a rollout !ap $or the 5&A/ on the NBN Co *eb site sho*ing the co,erage area $or that 5&A/ and the esti!ated nu!ber o$ pre!ises to be passed G co,ered. (hen the pre!ises in an 5&A/ are de$ined as Pre!ises Passed. .ptical $ibre *ith no acti,e electronics attached. The base case used $or the Corporate Plan% assu!ing that all the ter!s o$ the Telstra 8e$initi,e Agree!ents and .ptus '5C Agree!ent are $ull (here the connection $ro! the street to the pre!ises is carried out *hen an order $or a ser,ice is recei,ed $ro! a retail ser,ice pro,ider. A $a!il o$ technologies that deli,er high-speed data trans!ission o,er a copper phone line. Net*or0 de,ices nor!all located in telephone e2changes pro,iding !ultiple ports connecting -nd-9ser copper lines $or the pro,ision o$ 8&L broadband ser,ice. Connection bet*een the 5ibre 8istribution 'ub "F$;# and the 5AN% $or both 7egional 5ANs and the /etropolitan 5ANs% as *ell as the connecti,it bet*een the non adKacent 5ibre &er,ing Area /odules in the Capital Cities and the /etropolitan 5ANs. 8istribution 5ibre routes are designed in a ring structure to !ini!ise the i!pact o$ an $ibre brea0 on consu!er ser,ices as *ell as pro,iding di,erse paths $or protected co!!ercial point to point ser,ices. The part o$ the net*or0 that connects the 5AN to the 58'.
Construction Co!"leted $ar Fi<re $eal Case G$e!and $ro"H $igital Su<scri<er Line >$SL? $igital Su<scri<er Line Access Multi"le@ers >$SLAMs? $istri<ution Fi<re
$istri<ution Networ Earnings Be9ore Interest and 'a@es >EBI'? Earnings Be9ore Interest3 'a@es3 $e"reciation and A!ortisation End8&sers Enter"rise )esource -lanning >E)-? Ethernet
The operating pro$it be$ore deduction o$ interest and inco!e ta2es.
The operating pro$it be$ore deduction o$ interest% inco!e ta2es% depreciation and a!ortisation.
5inal do*nstrea! custo!ers to NBN Co1s Access &ee0ers. The s ste! that *ill pro,ide NBN Co *ith the capabilities to !anage enterprise $unctions such as $inance% $i2ed assets% hu!an resources% proKect !anage!ent% suppl chain !anage!ent% and contract !anage!ent. A $ra!e based transport protocol $or $or*arding tra$$ic across Local Area Net*or0s "LANs#.
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Fair 4or -rinci"les
Fi<re Access Node >FAN? Fi<re $istri<ution Area >F$A? Fi<re $istri<ution ;u< >F$;? Fi<re Foot"rint Fi<re Ser:ing Area >FSA? Fi<re Ser:ing Area Module >FSAM?
9nder the 8epart!ent o$ -ducation% -!plo !ent and (or0place 7elations% these principles support the creation o$ )ualit Kobs b ensuring that NBN Co procure!ent decisions are consistent *ith the 5air (or0 Act and its ai!s% including pro!oting $air% cooperati,e and producti,e *or0places. A $acilit that houses the acti,e e)uip!ent pro,iding ser,ices to a 5ibre &er,ing Area "FSA#. Note that 9rban 5ANs *ill also pro,ide a Point o$ 6nterconnect "-oI# to Access &ee0ers. The geographic area ser,ed ,ia a single 5ibre 8istribution 'ub "F$;# *hich connects addresses to the ser,ing 5AN site"s# ,ia Local 5ibre. T picall ser,ing up to 200 pre!ises. The e)uip!ent located in a 5ibre 8istribution Area *here 8istribution 5ibre is split to pro,ide Local 5ibre that runs do*n each street. The pre!ises that *ill be ser,iceable b NBN Co1s 5TTP net*or0 b the end o$ the 7ollout Period. The area ser,ed b a 5AN site% *hich $or the regional areas *ill be a cluster o$ 58As and $or the 16 cit !etropolitan locations *ill be a cluster o$ 5&A /odules. The 58As and 5&A /odules *ill be connected ,ia 8istribution 5ibre. A series o$ up to 16 58As lin0ed in a double loop con$iguration. T picall % a single $ibre sheath *ill connect the 5&A/ and its "up to 16# 58's bac0 to a no!inated 5ibre Access Node "FAN#. An 5&A/ !a be a s!all to*n or a part suburb in the case o$ large cities. The nu!ber o$ pre!ises contained in an 5&A/ is t picall bet*een 2%000 E ?%000% depending on location and net*or0 planning G topolog . &a!e as 5ibre-To-The-Pre!ise. The net*or0 design in *hich the 5ibre net*or0 is deplo ed to each pre!ises. The agree!ent entered into bet*een NBN Co and Telstra Corporation on 20 <une 2010. The $irst locations "a$ter the Pre 7elease &ites in Tas!ania# *here NBN Co *ill deplo 5ibre ser,ices. 5ibre to the 2 "F''@# is a generic ter! $or an broadband net*or0 architecture using optical $ibre to replace all or part o$ the usual !etal local loop used $or last !ile teleco!!unications. The generic ter! *as initiall a generaliQation $or se,eral con$igurations o$ $ibre deplo !ent "5TTN% 5TTC% 5TTB% 5TT'...#% all starting *ith I5TT1 but di$$erentiated b the last letter% *hich is substituted b an 2 in the generaliQation. 5inancial ;ear ended ?0 <une 20DD. +NA5 in$or!ation is pro,ided b P&/A Australia Li!ited "-SMA#. +NA5 lists all ,alid ph sical addresses in Australia. 6t contains appro2i!atel 12.6 !illion ph sical addresses% each lin0ed to its uni)ue geocode "that is% the speci$ic latitude and longitude o$ the address#. 8ata used to build +NA5 co!es $ro! contributors that include the Australian -lectoral Co!!ission% Australia Post% state% territor and Australian +o,ern!ent !apping agencies and land registries. +NA5 is pro,ided b P&/A Australia Li!ited "-SMA#.
Fi<re8'o8 'he8 ;o!e >F'';? Fi<re8'o8'he8 -re!ises >F''-? Financial ;eads o9 Agree!ent >F;.A? First )elease Site >F)S? F''@
F*20%% Geocoded National Address File >GNAF?
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6 August 2012
NBN Co. Ltd.
Giga<it8 ca"a<le -assi:e ."tical Networ >G-.N? GigahertQ >G;Q? Green9ields ;ealth3 Sa9et# D En:iron!ent >;SE? ;#<rid Fi<re Coa@ial >;FC? In9ills
A point to !ulti-point $ibre to the pre!ises net*or0 architecture that uses co!bination o$ electronics net*or0 and passi,e optical splitters to deli,er speeds up to 1%000 /bps to -nd-9sers. The +P.N acti,e la er technolog uses electronics that are designed to be co!patible *ith a $ibre that is subse)uentl split into !ultiple do*nstrea! $ibres. 9nit $or !easure!ent o$ $re)uencies. .ne +igahertQ is e)ual to 10 hertQ. A ne* de,elop!ent that can be either Broadacre or 6n$ill Pre!ises. +reen$ields de,elop!ents represent the gro*th o$ the pre!ises !ar0et. A supporting di,ision o$ NBN Co that *ill not be directl in,ol,ed in the operation o$ the NBN but *ill be responsible $or establishing and !aintaining the co!pan 1s policies regarding e!plo ee health% sa$et and en,iron!ent A net*or0 utilising both optical $ibre and coa2ial cable $or the deli,er o$ Pa T=% internet and ,oice ser,ices. A t pe o$ +reen$ields de,elop!ent *here ne* pre!ises or a rede,elop!ent "i.e. de!olition and rebuild# are planned to be built on currentl de,eloped land that is surrounded b established areas% *here Telstra copper ser,ices are currentl a,ailable. An u!brella ter! $or technologies that process% store and co!!unicate in$or!ation. The a,erage annual total return $ro! an in,est!ent o,er a speci$ied ti!e period% used to !easure and co!pare the pro$itabilit o$ the in,est!ent. The international standard b *hich data is trans!itted bet*een net*or0s "pac0et data protocol b *hich data is routed bet*een 6P enabled de,ices "co!puters# and net*or0s#. A ser,ice *here ,ideo strea!s are deli,ered across 6nternet "broadband# connections $or ,ie*ing at an -nd-9ser pre!ise. &atellite radio $re)uenc spectru! $ro! 2: E A0 +'Q. A !etric used to !easure the progress or degree o$ $ul$il!ent o$ a particular success criterion. .ne Bilobit Per &econd is e)ual to 1%000 bits per second. The ph sical net*or0 la er pro,iding electrical i!pulse or *a,elength based ser,ices on a point-to-point "-2-# basis. The trans!ission la er that encodes and decodes in$or!ation bits across la er 1 in$rastructure. La er 2 is the acti,e la er o$ an optical $ibre net*or0. A co!puter net*or0 that connects co!puters and de,ices in a li!ited geographical area "e.g. ho!e% o$$ice building#.
@
In9or!ation 'echnolog# >I'? Internal )ate o9 )eturn >I))? Internet -rotocol >I-? Internet -rotocol 'ele:ision >I-'(? 5a8<and 5e# -er9or!ance Indicator >5-I? 5ilo<its "er second > <"s? La#er 1 Networ C4hole s ale Ser:ices La#er 2 Networ C4holes ale Ser:ices Local Area Networ >LAN?
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6 August 2012
NBN Co. Ltd.
Local Fi<re
Local Networ Long 'er! E:olution >L'E? Mega<its -er Second >M<"s? Metro"olitan FAN Multi"le $welling &nit >M$&? National Broad<and Networ >NBN? National Code o9 -ractice 9or the Construction Industr# National Connecti:it# Networ >NCN? NBN Co Networ Access -oints >NA-? Networ and Ser:ice ."erations Centre >NS.C? Networ 'er!inatio n $e:ice >N'$? Networ 8to8 Networ Inter9ace >NNI? No $eal Case
Connection bet*een the 58's and the indi,idual +NA5s or buildings ,ia a series o$ radial $ibre cables containing Net*or0 Access Points "NA-s#% then a 8rop 5ibre to the building. Note that the Local net*or0 $ibre cables are not tapered% but the Iends1 o$ each seg!ent are interconnected to pro,ide through connection o$ the The part o$ the net*or0 $ro! the 5ibre 8istribution 'ub do*n each street. &tandardisation *or0 b the ? +eneration Partnership ProKect "0G--# to de$ine a ne* high-speed per$or!ance air inter$ace $or !obile co!!unication s ste!s. Co!!onl regarded as a A+ technolog . A unit o$ !easure!ent o$ trans!ission speeds. .ne /egabit Per &econd is e)ual to 1%000 0bps. DG; /bps !eans a !a2i!u! do*nstrea! speed o$ D /bps and a !a2i!u! upstrea! speed o$ ; /bps. A 5ibre Access Node "FAN# ser,ing a !etropolitan area. Pre!ises that contains !ore than one d*elling unit% *hich can range $ro! duple2es to 200H unit apart!ent bloc0s. -ach d*elling unit is assu!ed as e)ui,alent to one +NA5 "e.g. a 50 unit apart!ent bloc0 *ill ha,e 50 +NA5s#. The nation-*ide broadband net*or0 that *ill be deplo ed b NBN Co and third parties engaged on behal$ o$ NBN Co.
rd
&ets !ini!u! standards that businesses !ust !eet to be eligible $or certain Australian +o,ern!ent building and construction *or0. The National Connecti,it Net*or0 pro,ides national -thernet and 6P connecti,it $or the purpose o$ transporting internal NBN Co ser,ices including operational !anage!ent tra$$ic% *ireless signalling tra$$ic and NBN Co enterprise tra$$ic. NBN Co Li!ited ACN 1?6 5?? :A1. The point at *hich 8rop 5ibre is connected to Local 5ibre.
5acilit o,erseeing !anage!ent and operation o$ the net*or0 in$rastructure.
NBN Co1s ter!ination point on each pre!ise% $or residential $ibre ser,ices "t picall # $eaturing A -thernet and 2 telephone inter$aces. The port at NBN Co1s Point o$ 6nterconnect "-oI# *here Access &ee0ers connect their internet trans!ission bac0haul. Alternati,e to the 8eal Case% assu!ing no deal *ith Telstra and .ptus.
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6 August 2012
NBN Co. Ltd.
Non8-re!ises
.ccu"ational ;ealth D Sa9et# >.;S? ."erating E@"enditur e >."e@? ."erational Su""ort S#ste!s >.SS? ."tical Line 'er!inal >.L'? ."tus ;FC Agree!e nt -er Su<scri<er Address A!ount >-SAA? -oint o9 Interconnect >-oI?
Non-Pre!ises are de$ined in the &tate!ent o$ -2pectations as nonaddressable locations *hich NBN Co is per!itted% but not re)uired to connect unless directed to do so b the +o,ern!ent% the connection o$ *hich *ill not count to*ards the co,erage obKecti,e. Non-Pre!ises are de$ined at Attach!ent A E -remises 2e)inition% o$ the &tate!ent o$ -2pectations. A discipline concerned *ith protecting the sa$et % health and *el$are o$ people engaged in *or0 or e!plo !ent. The ongoing cost o$ running a business% s ste! or product.
The set o$ s ste!s that *ill pro,ide NBN Co *ith the capabilities to pro,ision% con$igure% !anage% and operate the NBN. The e)uip!ent to pro,ide the +P.N signals to each o$ the 58As. The agree!ent bet*een NBN Co and &ingtel .ptus Pt Ltd and other .ptus entities "."tus# *hich *as e2ecuted on 2? <une 2011. The .ptus '5C Agree!ent pro,ides $or the progressi,e !igration o$ .ptus '5C subscribers to the NBN as it is rolled out. NBN Co has agreed to !a0e progressi,e pa !ents to .ptus% based on the nu!ber o$ .ptus subscribers that !igrate $ro! its '5C net*or0. Per &ubscriber Address A!ount "-SAA# as de$ined in the Telstra 8e$initi,e Agree!ents. The connection point that allo*s 7&Ps and (&Ps to connect to the NBN Co access capabilit . 6n the $ield% this is the ph sical port on the -thernet 5anout &*itch "EFS# s*itch located at NBN Co1s Po6% *here an Access &ee0er connects to establish e2change o$ tra$$ic *ith NBN Co1s net*or0. A net*or0 design in *hich a dedicated access $ibre connects indi,idual pre!ises directl to the $ibre e2change. A co!ponent *hich pro,ides po*er to a de,ice. Pre!ises are de$ined as addressable locations *hich NBN Co is re)uired to connect and are included at Attach!ent A E -remises 2e)inition% o$ the &tate!ent o$ -2pectations. The &tate!ent o$ -2pectations re$ers to this de$inition as the basis $or !easuring NBN Co3s achie,e!ent o$ the +o,ern!ent3s co,erage obKecti,es. Pre!ises are acti,ated a$ter recei,ing and pro,isioning a ser,ice order $ro! a 7etail &er,ice Pro,ider to install a ne* ser,ice at the pre!ise. All design% construction% co!!issioning and )ualit assurance acti,ities in an 5&A/ ha,e been co!pleted $or the Local net*or0 and 8istribution net*or0. The locations in Tas!ania *here 5ibre-To-The-Pre!ises "F''-# *as $irst deplo ed% be$ore the 5irst 7elease &ites.
-oint8to8-oint >-2-? -ower Su""l# &nit >-S&? -re!ises
-re!ises Acti:ated -re!ises -assed -re )elease Sites
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6 August 2012
NBN Co. Ltd.
-riorit# Assistance -u<lic In9or!ation on Migration >-IM?
/eans those ser,ices supplied to Priorit Custo!ers under the Priorit Assistance polic . A Priorit Custo!er is a custo!er *ho satis$ies the eligibilit criteria in relation to a diagnosed li$e-threatening !edical condition. The Public 6n$or!ation on /igration "-IM# acti,ities i!ple!ent the +o,ern!ent1s obKecti,e $or NBN Co to be responsible $or $unding a*areness and education to in$or! teleco!!unication users about the !igration o$ ser,ices in $ibre areas $ro! copper or '5C-based in$rastructure to the NBN $ibre-based ser,ices. The P6/ re)uire!ents are outlined in the Public 6n$or!ation and /igration deed bet*een the Co!!on*ealth and Telstra. Public 6nterest Pre!ises "-I-s# re$ers to +o,ern!ent% 'ealth and -ducation pre!ises. The P(C *as established in 1@1? and is one o$ the oldest in,estigati,e co!!ittees o$ the Parlia!ent. The Co!!ittee is constituted b the Public (or0s Co!!ittee Act 1@6@. The P(C Act pro,ides that "*ith certain li!ited e2ceptions# a public *or0 *ith an esti!ated cost e2ceeding F15 !illion shall not be co!!enced unless it has been re$erred to the Parlia!entar &tanding Co!!ittee on Public (or0s "-4C#. The tra$$ic engineering ter! Cualit o$ &er,ice "FoS# re$ers to resource reser,ation control !echanis!s rather than the achie,ed ser,ice )ualit . Cualit o$ &er,ice is the abilit to pro,ide di$$erent priorit to di$$erent applications% users% or data $lo*s% or to guarantee a certain le,el o$ per$or!ance to a data $lo*. 7ead to accept G pro,ision ser,ice orders $ro! 7etail &er,ice Pro,iders. An initiati,e o$ 8epart!ent o$ Broadband% Co!!unications and the 8igital -cono! "$BC$E#% as part o$ the NBN% *hich is in,esting up to F250 !illion to i!!ediatel address areas *here e2isting bac0haul does not pro,ide broadband access throughout regional Australia. A third part pro,ider o$ retail broadband ser,ices to -ndE9sers. Pre!ises that contain onl one d*elling unit. .ne &89 is e)ui,alent to one +NA5. &pecial &er,ices are ser,ices deli,ered using the copper CAN other than ,oice or broadband. Letter to NBN Co $ro! its &hareholder /inisters dated 1: 8ece!ber 2010. &ee http4GG***.dbcde.go,.auG dataGassetsGpd$M$ileG000?G1?206@G&tate!entMo$M- 2pectations.pd$ The supplier that is chosen to i!ple!ent and integrate a s ste!. Telstra 8e$initi,e Agree!ents !eans the suite o$ agree!ents entered into bet*een NBN Co and Telstra on 2? <une 2011 and *hich are described in the release issued b Telstra to the A&D on that da . A te!porar 5ibre Access Node "FAN# to ser,e +reen$ields de,elop!ents.
-u<lic Interest -re!ises >-I-s? -u<lic 4or s Co!!ittee >-4C?
Fualit# o9 Ser:ice >FoS?
)ead# For Ser:ice >)FS? )egional Bac haul Blac s"ots -rogra!!e >)BB-? )etail Ser:ice -ro:ider >)S-? Single $welling &nit >S$&? S"ecial Ser:ices State!ent o9 E@"ectation s >S.E? S#ste! Integrator >SI? 'elstra $e9initi:e Agree!ents '8FAN
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6 August 2012
NBN Co. Ltd.
'ransit Fi<re
'ransit Networ G'#"e 2 Architectur eH >'2A?
Connection bet*een Points o$ 6nterconnect "-oIs# *here the 7etail &er,ice Pro,iders connect to the NBN% and the regional based 5ANs. Transit 5ibre can also pro,ide connecti,it $or the /etropolitan 5ANs to Po6s i$ re)uired. The $ibre rings *hich connect the regional 5AN sites and the nearest Po6% ser,ed b Transit 5ibre. IT pe 2 Architecture1 describes the e)uip!ent being deplo ed $or ,olu!e rollout b NBN Co in the Local and 8istribution net*or0s. The signi$icant di$$erences bet*een IT pe 1 Architecture1 and IT pe 2 Architecture1 are in the IT pe 2 Architecture1s1 use o$ ribbon $ibre% the di,erse connections a,ailable $or PointtoPoint and P.N connections $ro! an 58'% and the di,ersit *hich is $ull 6n /arch 2012% the 5ederal Parlia!ent passed the uni,ersal ser,ice re$or! legislation to ensure basic uni,ersal teleco!!unication ser,ice standards during and a$ter the rollout o$ the NBN and to establish the Teleco!!unication 9ni,ersal &er,ice /anage!ent Agenc "'&SMA#% *hich *ill ad!inister the 9ni,ersal &er,ice .bligation "&S.# and other public interest ser,ices. The +o,ern!ent *ill supple!ent T9&/A1s $unding in the $irst 2 $inancial ears as a transitional !easure. 5ro! 1 <ul 2012% all teleco!!unication carriers% including NBN Co% *ill ha,e to contribute to the costs o$ T9&/A. 9ni,ersal &er,ice .bligation "&S.# Pa phones are de$ined as a pa phone *hich is acti,ated in co!pliance *ith the 9&. as per Attach!ent A E -remises 2e)inition% o$ the &tate!ent o$ -2pectations *hich lists 9&. Pa phones as non- pre!ises *hich NBN Co is re)uired to connect% on ter!s appro,ed b +o,ern!ent% but do not count to*ards the co,erage obKecti,e. The ph sical port on the NBN Co NT8 at the -nd-9ser pre!ises *hich connects the -nd-9ser1s residential gate*a or -thernet enabled de,ice to the NBN. A technolog or ser,ice that allo*s people to select and *atch ,ideo content at the ti!e o$ their choosing% unrestricted b a linear schedule. A docu!ent *hich sets out the ter!s and conditions o$ access to NBN Co1s ser,ices and products and *ill constitute NBN Co1s standard $or! o$ access $or the purposes o$ the Access Arrange!ents Act. A pro,ider o$ *holesale ser,ices to 7&Ps. A series o$ Base Transcei,er &tations "B'S# lin0ed in a geographic cluster con$iguration.
'&SMA Le:#
&ni:ersal Ser:ice .<ligation >&S.? -a#"hones &ser Networ Inter9ace >&NI? (ideo8on8 $e!and >(o$? 4holesale Broad<and Agree!ent >4BA? 4holesale Ser:ice -ro:ider >4S-? 4ireless Ser:ing Area >4SA?
@6
6 August 2012

NBN Co Corporate Plan

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NBN Co Corporate Plan

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NBN Co. Ltd.

Corporate Plan 201215

Corporate Plan 2012-15

NBN Co. Ltd.

NBN Co. Ltd.

Corporate Plan 2012-15

NBN Co. Ltd.

Corporate Plan 2012-15

NBN Co. Ltd.

Corporate Plan 2012-15

NBN Co. Ltd.

Corporate Plan 2012-15

NBN Co. Ltd.

Corporate Plan 2012-15

NBN Co. Ltd. 1+2 Su!!ar# .<=ecti:es

http4GG***.!inister.dbcde.go,.auG!ediaG!ediaMreleasesG2012G022. http4GG***.nbnco.co!.auGassetsG!edia-releasesG2012Gthree- ear-national-release-2@-0?-12.pd$.

Corporate Plan 2012-15

NBN Co. Ltd. 1+0 2012811 ;ighlights Cor"orate -lan

Corporate Plan 2012-15

2011810 Cor"orate -lan :.0N

2012811 Cor"orate -lan :.1N

Mo:ing 9ro! the 2011810 Cor"orate -lan to 2012811 Cor"orate -lan

Corporate Plan 2012-15

Forecast ."erating E@"enditur e

Forecas t )e:enue s >to

A+ Changes in Sco"e o9 the .:erall -ro=ect B+ .ther Changes

&ource4 NBN Co Note4 All nu!bers rounded to 1 deci!al point.

1+2+1 Changes Sco"e

Corporate Plan 2012-15

!%hi&it 1',( Comparison o) Corporate -lans

Brown9ield -re!ises -assed -ro9ile >In 'housands?

I!"act o9 the 6 !onth dela# in Co!!ence!ent $ate

2011 - 1? CP @ !onth dela

Corporate Plan 2012-15

Corporate Plan 2012-15

'elstra $eal Sco"e Agree!ent

Telstra 5inancial 'eads o$ "<une 2010#

."tus $eal Sco"e

Not included Plan assu!ed no .ptus '5C subscribers !igrate

Corporate Plan 2012-15

NBN Co. Ltd.

2011810 Cor"orate -lan

1?0%000 0!s 1>1%000 0!s

1A>%000 0!s 206%000 0!s

Custo!er Connections /odel

Note4 P The 2012-15 Plan assu!es 100N 6nternal NT8s.

7e$er &ection 6.2.2% #i&re /etwor06 $or $urther details.

Corporate Plan 2012-15

Corporate Plan 2012-15

NBN Co. Ltd.

Corporate Plan 2012-15

NBN Co. Ltd. 2+0 Networ $e"lo#!ent

Customer cti!e "#uipment $ %D&s

Local Netw ork

Distribution Netw ork

erial Lead-+n C onduit

Ducted ,ibre Pit Pit

Ducted ,ibre %an1oles

Ducted$ 2uried ,ibre

N etwork Premise Termination C onnection D e!ice.NTD0 D e!ice.PCD0

Ducted ,ibre &nder-round Lead-+n Conduit

& nder-round Local ,ibre N et work %ultiport

5 Premise e#uipment N et work Termination De!ice inst alled

http4GG.!inister.dbcde.go,.auG!ediaG!ediaMreleasesG2012G022. http4GG.nbnco.co!.auGassetsG!edia-releasesG2012Gthree- ear-national-release-2@-0?-12.pd$.