NBN Co Network Extension Policy

1. Policy statement NBN Co was established to deliver Australia s first national wholesale-only, open access broadband network to all Australian homes, schools and businesses (the National Broadband Network, or NBN). The Government s objective for NBN Co is to connect 93 percent of premises with fibre-to-thepremises technology providing broadband speeds of up to 100 megabits per second and capable of one gigabit per second. All remaining premises will be served by a combination of nextgeneration fixed wireless and satellite technologies. The Government undertook detailed analysis to determine how far it could extend the fibre network and found the cost of fibre after the 93rd percentile becomes prohibitive and it is more efficient to service those premises with fixed wireless technologies and satellite. This deployment approach allows NBN Co to meet the Government s objective of connecting 100 percent of premises to the National Broadband Network providing a step change in broadband infrastructure and also support a uniform national wholesale price so that no matter where people live they will pay the same wholesale access price. The Government recognised that premises owners and communities beyond the fibre footprint and the fixed wireless footprint who want access to these technologies may be prepared to contribute to extending these networks to their remote location. As such, the Government has encouraged NBN Co to explore mechanisms for a community or individual to fund the extension of the fibre or fixed wireless networks. The Government has also indicated that NBN Co should only seek to recover the incremental costs incurred in these extensions. 1.1 Network Extensions Program Following a trial of the process, NBN Co has established the Network Extension Program, with three types of Network Extensions categorised by the size and complexity of the extension. These are: Network Extension Policy

1. Adjacent Fibre Network Extensions - covering individual or multiple premises located on the edge of a fibre serving area module; 2. Large Fibre Network Extensions - covering small communities or towns that are not planned to be serviced by fibre; and 3. Fixed Wireless Network Extensions - covering small communities or towns that are planned to be serviced by satellite services The three types of Network Extensions are classified by the technology platform (Fibre and Fixed Wireless) and the timing of the rollout. A key objective behind the Network Extension Program is to give Australians households, businesses and other premises the ability to choose where possible an alternative technology through which they can access the NBN. Network Extensions will be available where they can be built: In an appropriate timeframe taking into account NBN Co s construction program; and using NBN Co s standard reference architecture and construction methodology; and in accordance with all applicable environmental and planning laws. In limited circumstances, there may be physical or technical limitations that may lead to different wholesale service levels in remote locations. For example, restoration timeframes may vary in remote locations. These will be explained clearly to Applicants as part of the quotation process. Network Extensions will be provided on the basis of financial contributions by those serviced by the Network Extensions. Through the Network Extension Program, NBN Co will not be able to Network Extension Policy 3

extend the NBN fibre network or the fixed wireless network to all premises. This is due to a number of factors, including the geography of Australia, the location of the backbone network and the availability of fixed wireless spectrum in some locations. 1.2 Eligible applicants Applicants can be individuals, businesses, incorporated associations, government bodies and other similar entities. All applications for Network Extensions must be submitted by: 1. the owner of the property; or 2. a person having the written authority of the owner of the property to undertake or procure the undertaking of construction work on the property. (NBN Co may request a copy of this authority at any time up until seven years after the applicable Network Extension is completed); or 3. a government body representing a small town or community. Applications will be subject to agreed terms and conditions for the Network Extension. Where the applicant is not the owner of the property, additional provisions will apply to ensure that the owner of the property has provided the necessary authority. 1.3 Application process The application process for Network Extensions is set out below. a) Applicants can submit an application for a Network Extension to their property by either calling the NBN Co s contact centre on 1800 881 816 or by completing a Network Extension Network Extension Policy 4

application form. Application forms are available at www.nbnco.com.au/networkextension or at a local NBN Co community information session. Completed forms can also be sent to networkextension@nbnco.com.au. More information regarding the quote is available on request. For Large Fibre Network Extensions and Fixed Wireless Network Extensions an estimate of the cost of the project may be provided by NBN Co before developing a firm quote. This allows for Applicants to make timely decisions about proceeding with the application. In some circumstances, a site visit by NBN Co or one of its contractors to the premises of the applicants may be required. 1.4 Credit worthiness assessment Applicants may also be subject to a credit worthiness assessment at the request of NBN Co. If NBN Co intends, as a condition to undertaking a Network Extension, to seek a credit report about the creditworthiness of an Applicant, NBN Co will request an Applicant s written consent to obtain the credit report as required by law. NBN Co reserves the right to refuse an application or require full payment before commencing work based on the results of a credit assessment. 2. Adjacent Fibre Network Extensions 2.1 Overview Adjacent Fibre Network Extensions cover individual premises or small groups of premises that are in areas: next to a fibre serving area module that is included in NBN Co s 12 month rollout plan; or in the course of being built; or that are already built. Adjacent Fibre Network Extensions will connect premises by extending the fibre network from a fibre serving area without building any new active equipment 1. Generally, this will apply to premises that are within eight kilometres from a Fibre Access Node. However, this will vary on a case-by-case basis depending on the reach of the existing fibre network, and the design and length of NBN Co s fibre cable route. 1 Active equipment is the technology that combines traffic from multiple premises and transmit it across the network and is part of our backbone network Network Extension Policy 5

The work undertaken for Adjacent Fibre Network Extensions will include design and construction of the fibre network to an end-user s property boundary. It will also include the installation of fibre from the property boundary to end-user premises. NBN Co s quote will only cover the installation of network infrastructure. Once the network has been built, tested and activated to support services, end users can then order services from a Retail Service Provider. It is the intention that when a network extension is built at the same time as the neighbouring fibre service access module (FSAM) that services will be available to the network extension premises in the same timeframe as they are switched on for the relevant FSAM. Where a network extension is built adjacent to an active FSAM, services will generally be available shortly after the build has been completed. Information about how to order a service from a Retail Service Provider over the NBN can be found at www.nbnco.com.au/gettingconnected. 2.2 NBN Co considerations for Adjacent Fibre Network Extensions NBN Co will consider applications for Adjacent Fibre Network Extensions based on the following considerations: 1. Adjacent Network Extensions will only be provided for locations that would otherwise not be serviced by fibre. Adjacent Fibre Network Extensions will not be approved to bring forward the proposed installation schedule for premises already planned to be serviced by fibre; and 2. The extent to which the Adjacent Fibre Network Extensions can be performed within NBN Co s existing design and construction regime; and 3. The ability to accommodate timeframes regarding the availability of third party infrastructure which NBN Co may use - and its relative cost; and 4. The timing of the application and proximity to fibre network NBN Co will only accept applications for Adjacent Fibre Network Extensions once the fibre service area module is included in NBN Co s 12 month rollout plan or if the fibre service area module has already been constructed. For reference, NBN Co s published 12 month rollout plan is available at: http://www.nbnco.com.au/our-network/rollout-plan.html. Once an application is accepted, NBN Co will provide a quote, together with the terms and conditions on which the applicable Adjacent Fibre Network Extension will be provided. Before Network Extension Policy 6

construction may start, the Applicant must accept these terms and conditions. During the application process, NBN Co personnel will be available to discuss the quote. 2.3 Determining financial contributions This section sets out how NBN Co will determine financial contributions for Adjacent Fibre Network Extensions. NBN Co will provide a quotation that outlines the financial contribution required by the applicant and payment structure. Applicants will be required to make financial contributions for design and construction of Adjacent Fibre Network Extensions. NBN Co may undertake work where it can recover the incremental cost of extending the network for Adjacent Fibre Network Extensions. The financial contributions will be determined by NBN Co based on its design and construction costs. These costs will include the building of telecommunications infrastructure and may include acquiring access to third party infrastructure, among other matters. The quotation will be based on: the location of each property, taking into account geography and distance from the fibre footprint; time and cost to build the Adjacent Fibre Network Extension; costs of using third party infrastructure; and environmental and planning approvals. Applicants will generally not be required to make full payment before the commencement of the Adjacent Fibre Network Extension work. However, Applicants may be required to make full payment before they receive services from a Retail Service Provider over the Adjacent Fibre Network Extension. Generally, the payment structure will include a single price. The Adjacent Fibre Network Extension price will cover design and construction from a connection point inside the fibre serving area module to the premise connection device on your property. Applicants will be responsible for the financial contribution, even if they no longer own or reside at the relevant property. It is expected that the Applicant and property owner will make their own financial contribution arrangements. 2.4 Shared Infrastructure Where Adjacent Fibre Network Extensions are built along a route that services or could service multiple applicants, the following principles will apply: Network Extension Policy 7

1. The financial contribution will be divided between the various applicants. However, the costs of joint parts of the route will be divided equally. Costs for a single property will be allocated to the applicant for that property. The manner in which this is administered is set out below. 2. If several applicants apply for an Adjacent Fibre Network Extension at or about the same time, a price adjustment structure will be used to ensure that all applicants have contributed appropriately to the Adjacent Fibre Network Extension. It will be applied as follows: a. The financial contribution will be quoted and requested independently of the availability of the price adjustment. b. The price adjustment will be calculated once all applications have been processed. 3. A price adjustment for the Original Applicant will be calculated and given effect to by NBN Co once all applications have been processed if: a. a financial contribution is paid by one or more applicants for an Adjacent Fibre Network Extension (the Original Applicants); and b. an application for a Adjacent Fibre Network Extension to a property along the same route and using infrastructure of the first Network Extension is subsequently accepted by NBN Co (Secondary Applicants); and c. the Secondary Applicant enters into a contract with NBN Co for the Adjacent Fibre Network Extension before completion of the payments by the Original Applicant. In all situations, the price adjustments will be further detailed in the terms and conditions. 4. Applicants may receive rebates, if: a. a financial contribution is paid by one or more applicants for a Adjacent Fibre Network Extension (the Original Applicants); and b. an application for a Adjacent Fibre Network Extension to a property along the same route and using infrastructure of the first Network Extension is subsequently accepted by NBN Co (Secondary Applicants); and c. the Secondary Applicant enters into a contract with NBN Co for the Adjacent Fibre then: Network Extension after completion of the payments by the Original Applicant; d. NBN Co will calculate a rebate on the initial Adjacent Fibre Network Extension cost; and e. the rebate will be made available to the owner of the property at the time the rebate is available (the Property Owner); and f. NBN Co will endeavour to contact the Property Owner at the relevant time and arrange payment of the rebate; and Network Extension Policy 8

g. the offer for the rebate will lapse if the Property Owner does not respond to the notice within a reasonable time period specified by NBN Co; and h. In calculating the Secondary Applicant s financial contribution, NBN Co will assume that the rebate has been paid to the Property Owner; and i. the rebate process will apply for a period of seven years following installation of the initial infrastructure. Applicants should be aware that the rebate will be paid to the Property Owner at the time it is applied. It is expected that arrangements will be made between the Original Applicant and the subsequent Property Owner regarding any rebate provided. This may include the amount paid being included in any sale price of the property, taking into account the manner in which the Network Extension increases the value of the relevant property. Accordingly, NBN Co would advise applicants to consider the arrangements they have with the future Property Owner should a rebate be payable following the payment by the Original Applicant. 3. Large Fibre Network Extensions Large Fibre Network Extensions may be contemplated where a small town, community or group of premises is scheduled to be serviced by the NBN with satellite or fixed wireless technologies, but the community wishes to fund the construction of extending the fibre network. Large Fibre Network Extensions could also cover individual sites that cannot be considered for an Adjacent Fibre Network Extension. A Large Fibre Network Extension will generally require: an extension of the backbone transit network of the NBN to a new location; and the construction of a new fibre access node (a facility that houses the active equipment providing services to an area). Applicants interested in a Large Fibre Network Extension should contact NBN Co only after nearby towns or communities are being serviced by the fibre network or have been included in NBN Co s three year rollout plan. NBN Co s three year rollout plan is available at http://www.nbnco.com.au/rollout/about-the-rollout/communities-in-the-rollout.html. NBN Co will then seek to engage early on the proposed Large Fibre Network Extension. However, Applicants should be aware that these projects are complex and require significant planning and consultation. Network Extension Policy 9

Following receipt of an application, NBN Co will conduct a high-level feasibility assessment and provide an indicative estimate of the cost of designing and building the Large Fibre Network Extension. At that point, NBN Co will consult with the Applicant town or community in relation to the cost, timing and other relevant factors associated with the Fibre Network Extension. 3.1 Considerations for Large Fibre Network Extensions applications NBN Co will consider Large Fibre Network Extensions applications based on the following considerations: 1. Large Fibre Network Extensions will only be provided for locations that would otherwise not be serviced by fibre. In addition, Large Fibre Network Extensions will not be approved to bring forward the proposed installation schedule for premises already within the Fibre Footprint; and the extent to which the Large Fibre Network Extensions can be performed within NBN Co s existing design and construction regime; and 2. The ability to accommodate timeframes for availability of third party infrastructure which NBN Co may use and its relative cost; 3. The timing of the application and proximity to fibre network. NBN Co will provide quotes for Large Fibre Network Extensions applications when towns or communities are in the same general area as those published in NBN Co s 3 year fibre rollout plan. NBN Co s three year rollout plan is available at http://www.nbnco.com.au/rollout/about-therollout/communities-in-the-rollout.html. 3.2 Determining financial contributions Applicants will be required to make financial contributions for the design and construction of Large Fibre Network Extensions. Generally, full payment is not required before the commencement of the Fibre Network Extension work. However, Applicants may be required to make full payment before they receive services from a Retail Service Provider over the Adjacent Fibre Network Extension. For Large Fibre Network Extensions, NBN Co will seek to manage the financial contributions through a single entity, such as a State or Local Government, or a company. NBN Co will not, as a general rule, deal directly with each property owner, particularly where the Large Fibre Network Extension impacts an entire community. Network Extension Policy 10

Each Large Fibre Network Extension application will be evaluated on a case-by-case basis. In relation to the financial contribution and payment structure, NBN Co will endeavour to minimise unnecessary expense and time investment by Applicants. NBN Co will achieve these objectives by consulting with relevant governments and organisations early in the process. 4. Fixed Wireless Network Extensions Fixed Wireless Network Extensions may be contemplated where a community or group of premises is scheduled to be serviced with satellite technologies. However, the community may wish to fund the establishment of fixed wireless infrastructure. A Fixed Wireless Network Extension will generally require the establishment of a new fixed wireless facility or group of facilities (using newly constructed infrastructure and/or existing telecommunications structures). 4.1 Considerations for Fixed Wireless Network Extensions applications Fixed wireless construction involves substantial design work, community consultation and site identification efforts, therefore factors such as distance and geography will also impact on the ability to establish new fixed wireless sites. As such, NBN Co will not be able to extend the fixed wireless network to all areas. However, NBN Co will consider applications for Fixed Wireless Network Extensions based on the following considerations: 1. Fixed Wireless Network Extensions will only be provided for locations that would otherwise not be serviced by fixed wireless, or fibre. In addition, Fixed Wireless Network Extensions will not be approved to bring forward the proposed installation schedule for premises already planned to be serviced fixed wireless or fibre. 2. The extent to which the Fixed Wireless Network Extensions can be performed within NBN Co s existing design and construction regime for the fixed wireless network and; 3. The ability to accommodate timeframes for availability of third party infrastructure which NBN Co may use and its relative cost; and 4. The timing of the application in relation to NBN Co s construction program. Network Extension Policy 11

A feasibility study will be required to determine the suitability of particular location to fixed wireless technology. This will take into consideration the availability of existing infrastructure, spectrum, geography and distance from NBN Co s Transit network. 4.2 Determining financial contributions This section sets out how NBN Co will determine financial contributions for Fixed Wireless Network Extensions. Applicants will be required to make financial contributions for the design and construction of Fixed Wireless Network Extensions. This can include the cost involved in the bespoke design of fixed wireless sites, including facility location identification, construction (if required), the cost of powering and connecting these facilities and the radio frequency design to ensure the quality of the connection to each premise. Generally, full payment is not required before the commencement of the Fixed Wireless Network Extension work. However, Applicants may be required to make full payment before they receive services from a Retail Service Provider over the Fixed Wireless Network Extension. Each Fixed Wireless Network Extension application will be evaluated on a case-by-case basis. In relation to the financial contribution and payment structure, NBN Co will endeavour to minimise unnecessary expense and time investment by Applicants. NBN Co will achieve these objectives by consulting with relevant towns, communities and organisations early in the process. For Fixed Wireless Network Extensions, NBN Co will seek to manage the financial contributions through a single entity, such as a State or Local Government. NBN Co will not, as a general rule, deal directly with each property owner, particularly where the Fixed Wireless Network Extension impacts an entire community. This policy is effective as at 12 July 2012. (R2) It is subject to review from time and may be updated by NBN Co at NBN Co s discretion Network Extension Policy 12