The NBN: High Speed Broadband - The Next Steps

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1 The NBN: High Speed Broadband - The Next Steps Fibre-to-the-X (FTTx) This document sets out NBN Co s proposals in respect of certain aspects of the National Broadband Network. The contents of this 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 persons) 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 technological, legislative, regulatory and policy developments in respect of the National Broadband Network. All prices shown in this document are exclusive of GST..

2 What is FTTN and the value it generates? The challenges in a FTTN rollout? Global Experience- what does it tell us? Summary...Where to from here?

3 What is FTTN and the value it can deliver? What challenges does FTTN present? What opportunities does FTTN present? Where to from here?

4 Lets start from the top: Old Policy vs. New Policy Labor Policy: known as FTTP Coalition Policy: Known as FTTn 93% of the population to get Fibre To The Premise (FTTP) Last 7% to get Fixed Wireless & Satellite $44 billion peak funding 93% of Population to get Fibre To The X (FTTX) X = Node, Basement or Premises: optimise the mix Last 7% to get Fixed Wireless & Satellite $29 billion peak funding 25 Mbps Mbps to 90% by 2019

5 Fibre to the X (FTTx): FTTP and FTTN FTTP: Fibre to the Premises Telephone Exchange FTTN: Fibre to the Node (Street Cabinet) Telephone Exchange

6 Estimated Download Speed The Challenge: Delivering High Speed Broadband on legacy infrastructure Exchange Exchange is too far from some homes to supply high speeds. Fibre Lines up to 5km long! Copper cable Copper cable Copper cable 50 Mbit/s 20 Mbit/s 10 Mbit/s 2 Mbit/s *Speeds actually achieved by end users will depend on a number of factors including equipment quality, software, broadband plans and how the service provider designs its network.

7 Estimated Download Speed The Solution: Shorten the copper run, move fibre closer to the End-User, and deploy VDSL Telephone Exchange Nodes in the street are moved close enough for high speeds over remaining copper. Fibre 50 Mbit/s 50 Mbit/s 50 Mbit/s 50 Mbit/s *Speeds actually achieved by end users will depend on a number of factors including equipment quality, software, broadband plans and how the service provider designs its network.

8 Download Speed The Solution for Multi Dwelling Units: Shorten the copper run move fibre closer to the End-User and deploy VDSL in the building Telephone Exchange FTTB places the node in a building, utilizing the existing short copper runs within the building Apartment Building 50 Mbit/s 50 Mbit/s 50 Mbit/s 50 Mbit/s

9 What is Possible on FTTN for Consumers? and Internet Skype Online Gaming Telehealth Video Consultations High Definition IPTV 1 Mbps Bandwidth (Down) 1.5 Mbps Bandwidth (Up & Down) Less than 100ms Latency 2-5 Mbps Bandwidth (Up & Down) 5 10 Mbps Bandwidth (Down)

10 What is Possible on FTTN for Businesses? Multi-line Telephony Telecommuting Sending Large Files Cloud Services Business Grade Video Conferencing & Collaboration Small Business Less than 1 Mbps FTTN 2 Mbps FTTN 2 Mbps FTTN 1 2 Mbps FTTN 2 5 Mbps FTTN / FTTP Medium Business 1 2 Mbps FTTN +2 Mbps FTTN +2 Mbps FTTN 2 5 Mbps FTTN / FTTP 5-10 Mbps FTTP Large Business +2 Mbps FTTN / FTTP +5 Mbps FTTP +5 Mbps FTTP +5 Mbps FTTP +10 Mbps FTTP

11 Potential Benefit - Construction Cost Savings and Speed Customer Active Equipment & MDUs 1 Lead-ins Aerial Lead-in (LI) 2 Local Network FlexNAP 3 Distribution Network 4 Transit Network Premises NTD Underground Distribution Point Aerial Fibre Network (FDH) Fibre Distribution Hub ODF (FAN) Fibre Access Node OLT DWDM ODF (AN) Aggregation Node ODF DWDM EFS Network Termination Device (NTD) Ducted Fibre Ducted Fibre Pit Manholes Ducted Fibre Ducted & Buried Fibre-to-the-Premises: New fibre lines required (cost, civil works, home appointments). Replaced in to be nominated locations by Fibre-to-the-Node: Existing installed copper lines.

12 Potential Benefit - Construction Cost Savings & Speed Reduction of civil works Installation process similar to current ADSL model

13 What is FTTN and how can we use it? What challenges does FTTN present? What opportunities does FTTN present? Where to from here?

14 FTTN deployment faces several localised challenges that will need to be overcome 1. Nodes will need to deployed at street corners, minimise copper runs >500 metres. 2. Power and battery backup will be required 3. The age and quality of copper varies and will need remediation to ensure foundation speed and reliability baseline can be achieved.

15 What is FTTN and how can we use it? What challenges does FTTN present? Global Experience : What does it tell us? Where to from here?

16 The International Experience FTTN continues to evolve Operator Download (Mbit/s) Upload (Mbit/s) BT Openreach (UK) Belgacom (BE) Chorus UFB (NZ) AT&T (USA) Deutsche Telekom (DE) 3 24 (45 in development) 50 (100 in development) 1 3 N/A Bell Canada (CA) Telecom Austria (AT) N/A Vectoring Many of the countries listed above are also deploying complementary FTTP programs or have Fibre On Demand as an option as part Superfast Broadband initiatives

17 End User Estimated Line Speed Mpbs Making the most of the copper 100 Vectoring adds stability and a further 15-30% speed 75 Line optimisation means more people get higher speeds Vectoring Line Optimisation VDSL2 ADSL2+ 0 Short Line Typical Line Long Line Estimates will be tested throughout trials.

18 Estimated Speed Attainable Mapped to Australian Household location 90% at 50 Mbps 100 Mbps 50 Mbps VDSL2 + Line Optimisation + Vectoring VDSL2 + Line Optimisation VDSL2 only Vectoring adds stability and a further 15-30% speed 25 Mbps Line optimisation means more people get higher speeds 25% 50% 75% Percentage of homes that can achieve a given speed Estimates will be tested throughout trials.

19 Estimated End User Speed Technology Evolution- DSL technology continues to evolve G.Fast 1Gbit aggregate speeds, short run <100 Metres, allows definable uplink and downlink speeds. Improves speed and symmetrical capability Estimates will be tested throughout trials.

20 What is FTTN and how can we use it? What challenges does FTTN present? What opportunities does FTTN present? Summary...Where to from here?

21 Summary : FTTN for High Speed Broadband High Speed Broadband planning for less cost and faster rollout Wholesale Speeds: 25 Mbps everywhere initially, upgrading to 50Mbps Supports Consistent NBN pricing model and product architecture. FTTX delivers benefits for most small & medium businesses. Fibre-on- Demand enables further upgrade if required. Service Providers innovation through Home Gateway equipment & services Legacy Services Planned for Compatibility: Faxes, Alarms, Eftpos supported Technology Continuum: Planned for the NBN ability to move GB speeds

22 Next Steps for NBNCo Strategic Review Industry Consultation Optimised Mix for coverage needs Strategic Review Telstra Negotiation Role of HFC Field Trials FTTN FTTB

23 Next Steps for NBNCo - Pilots Pilots needed to test process, customer experience and service capability Industry participation will be vital Pilot planning & industry consultation is underway

24 Continued deployment of NBN Fibre To The Premises Finish contracted areas New build in economically justified areas (Greenfields / unusable copper)

25 When will you get the NBN? Maps have been upgraded to reflect the new construction plans of NBN Co The Government s policy is to provide a minimum of 25Mbit/s to all Australians by 2016

26 Thank you

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