NBN Co Customer Collaboration Forum Wireless Focus Session Presenters: Stephen Wright, Roy Brown, Merv Chessells Disclaimer 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 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 Wireless Access Service Focus Session Building your products with the NBN Co Wireless Access Service Wireless Access service indicative coverage planning Getting ready to be on the NBN Discussion and Q&A 2
Product & Pricing Design...Simplicity and consistency 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 Access to 100% of Australian premises
WIRELESS ACCESS SERVICE - BUILDING YOUR PRODUCTS 4
One product Construct 3 technologies addressing new markets Up to 1000Mb/s Up to 400 Mb/s Fibre Access Node FIBRE Access Seeker Point of Interconnect SATELLITE Access Seeker Backhaul Access Seeker Up to 1 Mb/s WIRELESS ACCESS CONNECTIVITY
NBN Co is building a Fixed Wireless Network 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 6
Wireless Access Product Components Ethernet Bitstream AT YOUR CUSTOMER S PREMISES - CONNECTING TO YOUR CUSTOMERS - BUILDING YOUR SERVICE FOOTPRINT - CONNECTING TO NBN CO NNI NNI 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 Access Components Connectivity Components Version 1.0 Commercial in Confidence
Wireless Product Construct Indicative Component Pricing Ethernet Bitstream AT YOUR CUSTOMER S PREMISES - CONNECTING TO YOUR CUSTOMERS - BUILDING YOUR SERVICE FOOTPRINT - CONNECTING TO NBN CO NNI NNI User Network Interface UNI + Access Virtual Circuit AVC + Connectivity Virtual Circuit CVC + Network-Network Interface NNI* $24 Proposed Wholesale Price $20 /Mbps Proposed Wholesale Price Access Components Connectivity Components *NNI pricing is not included in the monthly price Version 1.0 Commercial in Confidence
Traffic classes - Multiple Applications Application Category Traffic Class Example Usage Real Time Traffic 1 Voice Interactive 2 Interactive Video, IPTV Transactional 3 Business Data, Gaming Best Efforts 4 Web browsing Initial service will include Traffic Classes 1 and 4 9
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 Minimum CVC Size 20 Mbps PIR and CIR options:- TC1 and TC4 Multicast Future Under review Points of Interconnect Sub-set of 120 Fibre locations Final location and number of wireless PoIs yet to be determined 10
Connectivity Virtual Circuit - Aggregation 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 NNI Charge: Business retail broadband services may be contended at 10:1 on the CVC 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
INDICATIVE COVERAGE PLANNING 12
At the customer premises... Example of an Outdoor Antenna Example of an Indoor unit (Network Termination Unit) 13
Base Station Equipment Outdoor Unit Indoor Unit Outdoor Unit 14
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
How does NBN Co s wireless coverage area relate to the Points of Interconnect? WIRELESS SERVING AREA POINTS OF INTERCONNECT For wireless services WIRELESS ACCESS NODE NNI Access Seeker Backhaul Access Seeker Point of Presence 16
Indicative breakdown Premises per wireless serving area 12 wireless 10 Number of AARs 8 6 4 2 0 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 GNAFs within AAR 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
Discussion and Q&A Getting ready to be on the NBN. 18
Pricing Example - Residential Broadband Assumptions: Number of Customers: 5000 Number of POIs: 5 Customers/POI: 1000 Contention ratio (CVC): 60:1 SAMPLE ONLY Product Component QTY Unit Cost Total 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 Pricing does not include your backhaul costs This pricing is indicative and subject to regulatory approval 19 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).
Pricing Example - Residential Broadband + Voice Assumptions: Number of Customers: 15,000 Number of POIs: 40 Customers/POI: 375 Contention ratio (CVC): 45:1 SAMPLE ONLY Product Component QTY Unit Cost Total Comments AVC (Traffic Class 4 + Traffic Class 1) CVC (Traffic Class 4 + Traffic Class 1) 15000 $24 $360,000 110 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 Pricing does not include your backhaul costs This pricing is indicative and subject to regulatory approval 20 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).
Wireless Access and Broadband Services Pricing calculator example and discussion SAMPLE ONLY 21 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).
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. Access Seeker Residential Gateway and telephone NTU Indicative design for Wireless Voice Service NBNCo Access Seeker Backhaul Access Seeker Point of Presence Access Seeker Soft switch 22
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) Fair Use Policy discussion point Due to the contended nature of bandwidth availability in wireless cells (the wireless AVC) Typical download requirements High definition IPTV services are expected to require between 8 and 10 Mbps per channel for video streaming 23
Provisional Wireless Product Roadmap IPv6 Administration and Management Release 3 VLAN Transparency Higher speeds (12+ / 1+) Traffic classes TC_2 and TC_3 Fair use policy controls Release 2 High-Speed Broadband and Telephony Release 1 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2011 2012 2013 24
Indicative timeline for wireless accreditation testing 2011 Wireless vendor contract Fibre: Ready for First Commercial Service 2012 Wireless Product Ready for Testing Wireless Ready for Market Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Sandpit & Lab testing for both fibre & wireless Lab testing for new Access Seekers (both fibre & wireless) Wireless BRT & prepare for 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 25
MORE INFORMATION 26
Information Available Product details provided in the Product and Pricing Overview - December 2010 On-Boarding details available in the Access Seeker Accreditation paper 02 December 2010 (http://www.nbnco.com.au/wps/wcm/connect/main/site-base/mainareas/publications-and-announcements/publications/product-andpricing-overview) (http://www.nbnco.com.au/wps/wcm/connect/main/site-base/mainareas/publications-andannouncements/publications/access+seeker+accreditation) 27
Summary How to build your products with the NBN Co Wireless product What will the NBN Co Wireless Access Service coverage look like? 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 Discussion and Q&A 28
Thank you! Disclaimer 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 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. 29