commsday summit 2016: nbn ceo bill morrow

UNCLASSIFIED

The nbn™: Is it enough?

2

Agenda

Why do we need the nbn?

© 2016 nbn co limited | nbn-Confidential: Commercial

Progress to date

Is it enough?

What next?

3



Progress to date

Is it enough?

What next?


4

Why the nbn™ exists

Global fixed-broadband deployment rose significantly between 2000-2010


Fixed-Broadband Household Penetration

Fixed-broadband households grew from 11 million to 500 million

Leading APAC countries began high-speed deployment – Europe & US follow later

By 2010 Australia trailed global peers in fixed-broadband penetration

The global landscape pre-nbn

5

The local landscape pre-nbn

Australian high-speed rollout stymied for much of 2000-2010


Akamai: Average broadband speeds (Mbps)

Australia fell well behind rest of the world in terms of average speeds (see fig.)

Australia became advanced 4G marketSource: Akamai

6

How did we get there?

Few new entrants are able to enter market

With no market disruption change was

minimal

Government recognised emerging

problem

nbn was created to resolve these issues


Building broadband networks is capital

intensive

Structural separation

7

What – How nbn™ will make a difference

Universal access creates new digital market

Unrestrictive data speeds and performance levels

Low barrier to entry and level playing field … retail competition

Optimizing digital demand …driving locally developed digital supply

nbn expecting financial return – beyond public service1

2

3 5

4© 2016 nbn co limited | nbn-Confidential: Commercial

8



Progress to date

Is it enough?

What next?

Progress to date

9

The nbn™ today

Built more than 2 million network connections


Signed 50+ RSPs

Activated more than 900k services

ARPU $43

Multiple traffic classes across all technologies

nbn Premises RFS by technology (April)

10

The nbn™ today

nbn total data consumption up 54% YoY


Some nbn RSPs now at close to 200GB/month

ABS stats tell us that overall fixed-broadband usage is at 58GB/month

Average usage at 128GB/month in 4Q15

11



Progress to date

Is it enough?

What next?

Is it enough?

12

Is it enough?

Is the financial return enough?


Is the rollout quick enough?

Is the product affordable enough?

Is the access technology fast enough?

13

Is the rollout quick enough?


nbn Premises Ready For Service - Incremental

FY15 FY16 FY17 FY180

500

1000

1500

2000

2500

3000

3500

4000

In April 2014 5% of homes could order a service - by June 2017 this will be 50%.

FTTP, FW, FTTB and FTTN launched.Satellite and HFC by end of year.

Average 28,000 Ready For Service per week in Q3/FY16

Average 13,000 activations per week in Q3FY16

14

Is the product affordable enough?


As consumption increases market needs to make sure broadband remains affordable

From June nbn will introduce new dimension based CVC pricing model

New model calculated on average usage per end-user – not related to sheer volume

Will encourage RSPs to offer higher volume plans and hope to see QoS improve

15

Is the access technology fast enough for today?


There are now 50+ RSPs selling nbn services on the network

These RSPs are providing a wide range of pricing on nbn products

78% of nbn end-users are using either 25/5Mbps or 12/1Mbps services

Only 16% of nbn end-users are choosing the top-end 100/40Mbps service

16

Is the access technology fast enough for tomorrow?


FTTP: GPON gets us to 1Gbps and 10-GPON has potential for 10Gbps and beyond

HFC: DOCSIS 3.1 delivers 10/1Gbps and Full Duplex DOCSIS has potential for 30/30Gbps

Fixed-Wireless: Advanced Antennae and 5G on the way to take speeds beyond 100Mbps

Satellite: Terabit satellite era is on the way – 100Mbps speeds are on horizon

"With the currently planned access technologies Gigabit capability will be available to nearly half the country and 50-100Mbps for the majority of the rest - putting us in a leading position across

comparable countries."

FTTN: G.Fast gets us to 1Gbps and XG-Fast has potential for 5Gbps and beyond

17



Progress to date

Is it enough?

What next?What next?

18

How will education and health benefit

from the nbn?

What is the role of the nbn in delivering

the IOT era?

Time to focus on the benefits


nbn will be 50% complete by June

2017

Focus must now be on how we use the nbn now it is here

How do we kick-start digital commerce?

19

Questions


commsday summit 2016: nbn ceo bill morrow

Technology