© NBN Co 2011

Disclaimer

This document sets out NBN Co’s proposals in respect of certain aspects of the National Broadband Network. The contents of th is document represent

NBN Co’s current position on the subject matter of this document. The contents of this document should not be relied upon by our stakeholders

(or any other person) as representing NBN Co’s final position on the subject matter of this document, except where stated otherwise.

NBN Co’s position on the subject matter of this document may also be impacted by legislative and regulatory developments in respect

of the National Broadband Network. All prices shown in this document are exclusive of any GST.

NBN Co Customer Collaboration ForumWireless Focus Session

Presenters: Stephen Wright, Roy Brown, Merv Chessells

© NBN Co 2011

NBN Co Wireless Access Service Focus Session

• Building your products with the NBN Co

Wireless Access Service

• Wireless Access service indicative coverage

planning

• Discussion and Q&A

• Getting ready to be on the NBN

2

© NBN Co 2011

Product & Pricing Design...Simplicity and consistency

Access to 100% of Australian premises

Fibre Wireless Satellite

• One Product Construct for the

three technologies

• One entry-level speed across the

technologies for the same price

• Integrated onboarding and

interoperability testing process

• Integrated B2B interface

• Consistent PoI arrangements

© NBN Co 2011

WIRELESS ACCESS SERVICE

- BUILDING YOUR PRODUCTS

4

© NBN Co 2011

One product Construct…3 technologies…addressingnew markets

Point of

Interconnect

Fibre

Access

Node

FIBRE

SATELLITE

WIRELESS

Access Seeker

Backhaul

Access

Seeker

Access

Seeker

Up to 400 Mb/s

Up to 1000Mb/s

Up to 1 Mb/s

ACCESS CONNECTIVITY

© NBN Co 2011

NBN Co is building a Fixed Wireless Network

6

• We are delivering a broadband service to fixed premises using wireless

technology outside the fibre roll-out footprint

• Wireless NTUs will be

o professionally installed

o permanently located at the End User premises

so that NBN Co can deliver wireless broadband with high performance and consistent service levels

To achieve this, each cell will be dimensioned for a defined number of users

• Fixed number of subscribers means network performance (throughput)

can be monitored and managed

• The NBN Co network is specifically not a Mobile network

Version 1.0 Commercial in Confidence

NNI NNI

Ethernet Bitstream

Wireless Access Product Components

AT YOUR

CUSTOMER’S

PREMISES-

CONNECTING TO

YOUR

CUSTOMERS-

BUILDING YOUR

SERVICE FOOTPRINT

-

CONNECTING

TO NBN CO

User Network

Interface

UNI+

Access Virtual

Circuit

AVC+

Connectivity Virtual

Circuit

CVC+

Network-Network

Interface

NNI

1GE interface at end

user premises

12 Mbps downlink / 1

Mbps uplink with

additional option for

telephony support via

TC_1

Aggregation network with

symmetrical committed bit

rates with upgrade options –

higher speeds; traffic classes

based on Access Virtual

Circuit requirements

1GE or 10GE

interfaces with upgrade

options

Connectivity ComponentsAccess Components

Version 1.0 Commercial in Confidence

AT YOUR

CUSTOMER’S

PREMISES-

CONNECTING TO

YOUR

CUSTOMERS-

BUILDING YOUR

SERVICE FOOTPRINT

-

CONNECTING

TO NBN CO

User Network

Interface

UNI+

Access Virtual

Circuit

AVC+

Connectivity Virtual

Circuit

CVC+

Network-Network

Interface

NNI*

$24 Proposed Wholesale Price

$20 /MbpsProposed Wholesale Price

NNI NNI

Connectivity ComponentsAccess Components

Ethernet Bitstream

Wireless Product Construct – Indicative Component Pricing

*NNI pricing is not included in the monthly price

© NBN Co 2011

Traffic classes - Multiple Applications

9

Application Category Traffic Class Example Usage

Real Time Traffic 1 Voice

Interactive 2Interactive Video,

IPTV

Transactional 3Business Data,

Gaming

Best Efforts 4 Web browsing

Initial service will include Traffic Classes 1 and 4

© NBN Co 2011

Indicative Wireless Product Overview and Features

Feature Comments

AVC Speed 12/1Mbps

Telephony Support Via UNI-D

Ethernet Bitstream Layer 2 Ethernet

Class of Service PIR and CIR options:-

TC1 and TC4

Minimum CVC Size 20 Mbps

Multicast Future Under review

Points of InterconnectSub-set of 120

Fibre locations

Final location and number of

wireless PoIs yet to be

determined

10

© NBN Co 2011

The Connectivity Link (CVC) is designed to be

dimensioned to suit your business model

The CVC is the 1st aggregation product

component and is used to aggregate multiple

AVCs back to the POI

The CVC can be contended. For example:

Mass Market retail broadband services

may be contended at 50:1 on the CVC

Business retail broadband services may

be contended at 10:1 on the CVC

Connectivity Virtual Circuit - Aggregation

NNI Charge:

At the PoI, there are two physical port types:

1G/10Gbps, standard range or

1G/10Gbps long range optical interface

Interface Options

1000BaseLX 10km

1000BaseZX 40km

10GBaseLR 10km

10GBaseER 40km

11

© NBN Co 2011

INDICATIVE COVERAGE

PLANNING

12

© NBN Co 2011

At the customer premises....

13

Example of an

Outdoor AntennaExample of an Indoor unit

(Network Termination Unit)

© NBN Co 2011

Base Station Equipment

14

Outdoor Unit

Outdoor Unit

Indoor Unit

© NBN Co 2011

Indicative coverage planning targets• Wireless access planning will take

place within the areas marked by the

red circles on the national and

following state maps

• Wireless coverage within these areas

will be for premises outside the fibre

footprint to bring fibre + wireless

coverage to 97% (~500,000 premises)

• First Release towns for Wireless are

planned to be adjacent to the First and

Second Release fibre locations

• Rollout optimisation will take into

account (in no particular order):

• Rollout in sync with fibre areas

• Contiguous areas (rollout by region)

• Rollout to existing sites first, then

Greenfield sites

The full list of POIs as released by the ACCC can be found at http://www.accc.gov.au/content/index.phtml/itemId/952292

15

© NBN Co 2011

POINTS OF

INTERCONNECT

For wireless services

How does NBN Co’s wireless coverage area relate to the Points of Interconnect?

Access

Seeker

Backhaul

WIRELESS SERVING AREA

NNI

WIRELESS

ACCESS

NODE Access

Seeker

Point of

Presence

16

© NBN Co 2011

Indicative breakdown –Premises per wireless serving area

0

2

4

6

8

10

12

1 to 2500 2501 to 5000 5001 to 7500 7501 to 10000 10001 to 12500 12501 to 15000 15001 to 17500 17501 to 20000 20001 to 22500 22501 to 25000

Nu

mb

er

of

AA

Rs

GNAFs within AAR

wireless

Graph – example distribution of households per wireless serving area

• 10 Wireless serving areas with 1 to 2500 premises

• 5 Wireless serving areas with 12 500 to 15 000 premises and 15 000 to 17 500

premises

17

© NBN Co 2011

Discussion and Q&AGetting ready to be on the NBN.

18

© NBN Co 2011

Pricing Example - Residential Broadband

Product Component QTYUnit

CostTotal Comments

AVC (Traffic Class 4) 5000 $24 $120,000 Per Month

CVC (Traffic Class 4) 200 Mbps $20/Mbps $15,000 Contention at 60:1 on the CVC

NNI Interface/POI 5 $200 $1,000 $1,000 Once off establishment cost per POI

TOTAL MONTHLY CHARGES $136,000

TOTAL ONCE OFF CHARGES $5,000

Monthly charge per subscriber $27.20

Assumptions:Number of Customers: 5000

Number of POIs: 5

Customers/POI: 1000

Contention ratio (CVC): 60:1

Pricing does not include your backhaul costs

This pricing is indicative and subject to regulatory approval

19

SAMPLE ONLY

NBN Co does not provide any representations or warranties as to the accuracy, completeness, currency or reliability

of the [Pricing Scenario Calculator] or the results generated by it. NBN Co provides the [Pricing Scenario Calculator]

on the basis that it is not liable to any person for any loss, cost, expense or damage (including direct, indirect or

consequential loss and damage, and regardless of whether such loss, cost, expense or damage is foreseeable or not).

© NBN Co 2011

Pricing Example - Residential Broadband + Voice

Product Component QTYUnit

CostTotal Comments

AVC (Traffic Class 4 + Traffic

Class 1)15000 $24 $360,000

CVC (Traffic Class 4 + Traffic

Class 1)110 Mbps $20/Mbps $73,000 Contention at 45:1 on the CVC

NNI Interface/POI 40 $200 $8,000 $8,000 Once off establishment cost per POI

TOTAL MONTHLY CHARGES $441,000

TOTAL ONCE OFF CHARGES $40,000

Monthly charge per subscriber $29.40

Assumptions:Number of Customers: 15,000

Number of POIs: 40

Customers/POI: 375

Contention ratio (CVC): 45:1

Pricing does not include your backhaul costs

This pricing is indicative and subject to regulatory approval

20

SAMPLE ONLY

NBN Co does not provide any representations or warranties as to the accuracy, completeness, currency or reliability

of the [Pricing Scenario Calculator] or the results generated by it. NBN Co provides the [Pricing Scenario Calculator]

on the basis that it is not liable to any person for any loss, cost, expense or damage (including direct, indirect or

consequential loss and damage, and regardless of whether such loss, cost, expense or damage is foreseeable or not).

© NBN Co 2011

Wireless Access and Broadband Services

• Pricing calculator – example and discussion

21

SAMPLE ONLYNBN Co does not provide any representations or warranties as to the accuracy, completeness, currency or reliability

of the [Pricing Scenario Calculator] or the results generated by it. NBN Co provides the [Pricing Scenario Calculator]

on the basis that it is not liable to any person for any loss, cost, expense or damage (including direct, indirect or

consequential loss and damage, and regardless of whether such loss, cost, expense or damage is foreseeable or not).

© NBN Co 2011

Wireless Access and IP telephony• NBN Co’s Ethernet network can run separate traffic classes, each with a greater or lesser priority level

• NBN Co is initially offering traffic class 1 and traffic class 4

• Traffic class 1 is suitable for time-critical applications, ie high quality voice services

• Traffic class 4 is suitable for internet traffic that is non-critical in nature

• Retail service providers can offer high quality telephony services over the wireless access service, via

Traffic Class 1 (150 kbps downlink / 150 kbps uplink) capability at no extra charge – limited to 1 service per

network terminating unit (unless otherwise arranged with NBN Co)

• This traffic class terminates on the UNI – Data port and requires retail service providers to support the

service via a home gateway and soft switch or similar infrastructure.

NBNCo

Access

Seeker

Point of

Presence

Access

Seeker

Backhaul

Access

Seeker

Soft switch

NTU

Access

Seeker

Residential

Gateway and

telephone

Indicative design for Wireless Voice Service

22

© NBN Co 2011

Wireless Access and Video

Video applications

• Typical and emerging video usages for

the Wireless Access service:

• Over the top video, catch –up TV (eg YouTube, ABC iView, Channel Ten, Hulu, Joost etc)

• Peer to peer video downloads

• Video downloads – purchases (eg iTunes Store, Netflix)

• Video conferencing – (eg Skype and similar -style services)

Typical download requirements

• High definition IPTV services are expected to require between 8 and 10 Mbps per channel for video streaming

Fair Use Policy – discussion point

• Due to the contended nature of

bandwidth availability in wireless

cells (the wireless AVC)

23

© NBN Co 2011

Provisional Wireless Product Roadmap

24

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

2011 2012 2013

Q1 Q2 Q3 Q4

VLAN TransparencyHigher speeds (12+ / 1+)

Traffic classes TC_2 and TC_3Fair use policy controls

IPv6 Administration

and Management

High-Speed Broadband and Telephony

Release 3

Release 2

Release 1

© NBN Co 2011

Indicative timeline for wireless accreditation testing

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Wireless

Ready for

Market

Wireless

vendor

contract

2011Fibre: Ready

for First

Commercial

Service

NBN Co has designed the process to make wireless an easy onboarding process by

combining initial testing with fibre, aiming to reduce the barriers to access premises:

1. B/OSS & interoperability becomes part of normal fibre testing

2. A small incremental test (1 – 2 days) will be required as part of IOT

3. Taking a wireless service is an easier decision because it requires only BRT as

a separate process

4. This change gives effect to the policy of integrating the products to the extent

possible

2012Wireless

Product

Ready for

Testing

Sandpit & Lab testing for

both fibre & wireless

Wireless BRT &

prepare for

service

Lab testing for new Access

Seekers (both fibre & wireless)

25

© NBN Co 2011

MORE INFORMATION

26

© NBN Co 2011

Product details provided in the Product and

Pricing Overview - December 2010(http://www.nbnco.com.au/wps/wcm/connect/main/site-base/main-

areas/publications-and-announcements/publications/product-and-

pricing-overview)

On-Boarding details available in the

Access Seeker Accreditation paper – 02

December 2010(http://www.nbnco.com.au/wps/wcm/connect/main/site-base/main-

areas/publications-and-

announcements/publications/access+seeker+accreditation)

Information Available

27

© NBN Co 2011

Summary

28

• How to build your products with the NBN Co

Wireless product

• What will the NBN Co Wireless Access

Service coverage look like?

• Discussion and Q&A

• Getting ready to be on the NBN

• UNI + AVC + CVC + NNI

• National coverage to 97% of

the population via a

connection to each wireless

Point of Interconnect

• Costing per end user per

month

• Onboarding processes

© NBN Co 2011

Disclaimer

This document sets out NBN Co’s proposals in respect of certain aspects of the National Broadband Network. The contents of th is document represent

NBN Co’s current position on the subject matter of this document. The contents of this document should not be relied upon by our stakeholders

(or any other person) as representing NBN Co’s final position on the subject matter of this document, except where stated otherwise.

NBN Co’s position on the subject matter of this document may also be impacted by legislative and regulatory developments in respect

of the National Broadband Network. All prices shown in this document are exclusive of any GST.

Thank you!

29