NBN Business case released!

[Jovial Monk]

Here it is!

Nearly a decade to wait for superfast broadband

Today's business plan reveals that it will take nearly a decade to hook up more than 10 million Australian homes:

RELATED LINK: Read the NBN business plan: http://www.abc.net.au/news/documents/sc ... phfdrih8s2
The release of the Federal Government's business plan for the National Broadband Network reveals it will take nine and a half years to connect more than 10 million Australian homes.

The Federal Government released the long-awaited 400-page business plan today.

It says the NBN will deliver fibre connection to 93 per cent of Australian homes, with the remainder to be serviced through fixed wireless and satellite connections after the launch of two new satellites.

The business plan has revealed the wholesale cost of connection will start at $24 per month for a download speed of 12 megabits per second, rising to $38 for 100 megabits.

But the plan contains no indications about retail prices.

Other key facts:


Total capital expenditure cost $35.9 billion
Government investment $27.5b, paid back with a return over the life of the project
NBN expected rate of return 7 per cent
NBN to raise $13.4b from capital markets from 2015
Annual revenue forecast at $5.8b in 2021, $7.6b in 2025
NBN will connect 93 per cent of premises with speeds up to one gigabit per second
NBN assumptions based on 70 per cent take-up of service

Fronting a press conference with Prime Minister Julia Gillard in Canberra, Communications Minister Stephen Conroy said the business case showed the NBN was financially viable and would deliver affordable internet services to the community.
He said the ACCC would have oversight of the development of the network to ensure a level playing field for consumers and retailers.

"[The NBN] reinforces the Government's belief that the NBN is not only something Australia can afford to do, but also something that we cannot afford not to do," Senator Conroy said.

"It is not usual practice for governments to release corporate plans for government business enterprises. We have never done it before and it certainly did not occur in the Howard government.
[My emphasis.]

"But the NBN is the largest nation-building infrastructure project in our history and the Gillard Government is committed to ensuring Australians are provided with as much detail as possible without compromising commercial sensitivities."

http://www.abc.net.au/news/stories/2010 ... ion=justin

[Outlaw Yogi]

.

The business plan has revealed the wholesale cost of connection will start at $24 per month for a download speed of 12 megabits per second, rising to $38 for 100 megabits.

But the plan contains no indications about retail prices.

NBN is viable, says Gillard
http://au.news.yahoo.com/latest/a/-/lat ... s-gillard/

NBN chief executive Mike Quigley said it was very difficult to compare actual cost of the NBN plans compared to existing plans using older technology.

The business plan cites a cost between $53-58 per month for a 12 megabit plan with a 50 gigabytes download limit.

Instance cost/price discrepancies suggests sugar coated cost blowouts in the making.

[mantra]

There is still a lot of cynicism about the cost of the NBN and Conroy wasn't exactly reassuring in his spiel yesterday. It sounds as though he doesn't understand it himself. Do we have any idea how long fibre cable will last? Some of the copper wire does need replacing, but it is only a theory at this stage that mainstream Australia will be better off. Wouldn't it be more economical just replacing the copper wire as it's needed and extending fibre to the bush? They would have to be compatible.

Our gardens will be dug up - trees, footpaths and concrete structures destroyed and chaos will reign. Yogi is right - there are discrepancies already and as the cost of everything else in our lives is increasing rapidly - why would Conroy believe the cost of the NBN will remain stable?

[Jovial Monk]

Optic fibre will last at least 60 years. The copper is way past its lifetime. It is time for the NBN.

[IQSRLOW]

It's time for more liebor waste

[Jovial Monk]

Turnbill gets a very deserved serve:

Opposition spokesman's faith in ADSL2+ is "badly researched", says Internode.

The federal Opposition needs to go back to school to brush up on broadband network topologies, a leading ISP said today.

Internode managing director Simon Hackett said the Federal Opposition's faith in ADSL2+ to deliver next-generation broadband streams was "naive" and "badly researched".

He was responding to Opposition communications spokesman Malcolm Turnbull's claims yesterday that most of the high-bandwidth applications mentioned in the NBN business plan such as Fetch TV from Internode and iiNet were broadband misers.

"The FetchTV IP television service, and others like it, can provide a single TV screen with standard-definition video services over a subset of ADSL2+ broadband services - as long as IP multicast is available," Hackett said.

And those very close to an exchange could get HD TV or multiple streams, but the number of houses with access fell the farther they were from the exchange, he said.

"That's because ADSL2+ delivers speeds which vary depending on how far away from a legacy Telstra exchange you happen to live," he said.

Hackett said the current regime lacked "equity of access" and "guaranteed high-speeds" for all Australians, "not just those who happen to live close enough to a legacy copper line connected exchange to be able to use it".

The solution was IP multicast that efficiently sent such video streamswhi to a big number of interested receivers without excess load on the network.

"The NBN, incorporating IP multicast as a part of the design, will let every Australian with a fibre connection experience the future IPTV services from Fetch that we plan to launch in the coming years - not just the initial, entry services we are launching in the first instance over ADSL2+," he said.

"The future, high-definition, multi-screen, on-demand, interactive future of entertainment that we will offer Australians in the coming years - including high definition two-way video calls from your lounge room - all depend on the NBN to be possible and will not happen without it."

http://www.itnews.com.au/News/242458,tu ... ckett.aspx

Great comment to above:

@nbsydney, it is precisely BECAUSE fifteen years of competition failed utterly to deliver any broadband to 40% of Australians that the investment vehicle has to be managed by government. From 2015 we will witness undignified elbowing between investors trying to secure a bigger piece of a very lucrative pie.

In fact, as economist Alan Kohler opined today on Business Spectator, the extreme conservatism of its demand forecasts means that the NBN will certainly turn a profit earlier than the timeline in its Business Plan.

Finally, it is obvious that many households will replace their current cable TV to "Foxtel Fibre" and similar IPTV services, thereby upsizing their NBN service and delivering quicker wholesale growth to NBNCo. It is quite conceivable that this increased cashflow could reduce the taxpayer contribution needed for the ten-year build.

[IQSRLOW]

If you are so certain it will be a profitable and beneficial program and not just another waste (remind me of one other liebor policy that hasn't been an abject failure...oh that's right...there isn't one- witness the green loans recent failure. That would be yet another liebor policy failure that you have championed. I don't think you have been correct about anything, anytime or anywhere. When it comes to championing failed liebor policies, you are a crystal ball for picking the losers) you should be calling for a CBA....but you won't because deep down you know this is just another failure.

You just keep throwing taxpayers money away like a good little dipshit

http://smarthouse.com.au/Wireless_And_N ... d/W4H6R5P3

NBN In Cartel With Telstra And Optus, Claims Internode

By Oonagh Reidy | Tuesday | 21/12/2010
As the NBN plan was announced, the second largest broadband provider claimed it amounts to a cartel between Optus, Telstra and the government.

In a blog posted on Sunday, Internode's MD, Simon Hackett said he supports the government's original 14 points of interconnection model, despite opposition being voiced from the competition regulator, the ACCC, who recommended an increase in the number of connection points, claiming the current number would reducing competition in backhaul markets.

The parties who contested the number to the ACCC included backhaul providers AAPT, Nextgen Networks, Optus, PIPE Networks, Telstra and the Competitive Carriers Coalition (CCC).

Carriers like Optus, VHA and TPG also back a ‘low consolidation' approach, calling for the establishment of up to 400 or 500 points of connection to the fibre network.

Hackett's opposition to the low density POI model is based on a belief that it "means that all smaller players will be forced to buy access from their own (generally) capital city based networks, through to each of those 200 POIs, from one of the few players with that existing fibre backbone structure in place."

"Because there will be very few of the big players, the access pricing to access the NBN POI's will tend toward cartel behaviour," he claims.

[IQSRLOW]

In fact where is your prancing "ooohhh $30 dollar broadband package- be still my beating heart" claims you used to gaily make?

Wrong about that too weren't you tard

[Dusty Trail]

$90+ for 100 mpbs. Ha ha ha "free fast internet" Ha ha ha .....

But ...... it includes a landline and "free" calls. Who uses the landline to ring anyone? The mobile phone is for all that stuff, right? Perhaps the NBN will be giving away free lawnmowers or something as an incentive? Ha ha ha ha

Ha ha ha ha

[IQSRLOW]

I already get 20+Mbs for less than $50

Looks like I have to have my service downgraded to socialise the network or pay an exhorbitent amount. Go fuck yourself Conjob