While changes will be made if the Opposition wins the next election in Australia, the Opposition also agrees that in some way the NBN is here to stay.
At the CeBIT conference and exhibition – which starts tomorrow – Paul Budde is presenting a range of mini seminars at the BuddeComm Theatre. The NBN is of course one of the hot topics under discussion.
Under the national plan NBN Co will connect 93% of homes, schools and workplaces to an optical fibre network (fibre-to-the-premises – FttP), providing high-speed broadband services to Australians in urban and regional towns. The remaining 7% of premises will be connected to an LTE-based fixed wireless network, and those in extremely remote areas will be linked to a satellite network.
The $36 billion plan includes a government investment of $27 billion. This investment also needs to be viewed in the context of the $60 billion raised by the privatisation of Telstra. It also needs to be seen as a national infrastructure investment, rather than a telecoms investment. It will be the backbone ofAustralia’s digital economy.
Enormous progress was made during 2011 and all the major elements are now in place – the NBN legislation; the regulatory framework; the agreements with Telstra and Optus; and the business plan of NBN Co. A few outstanding issues were resolved in early 2012.
Obviously new issues will arise and solutions to existing problems will need to be finetuned; however there is consensus that, with the assistance of the ACCC, this will be possible within the current framework.
An increasing number of retail service providers (RSPs) have been accredited by NBN Co to take part in the various pilots, as well as in the official rollout program. As NBN Co is a pure wholesale operator the end-users will depend upon the RSPs for innovative products and affordable pricing.
Affordable price is the key to a successful uptake of NBN services. Early indications are that a 12Mb/s entry level service will be priced at around $39 and for an extra $10 a telephone service will be added. IPTV add-ons are also priced at $10. Compared with similar services available over the current telecoms networks these offerings are most competitive. According to BuddeComm, over the longer term this should easily lead to a 70%+ commercial uptake.
All of this will help the industry double its size to around $80 billion by 2020.
From 22 to 24 May Paul Buddewill present in the CeBIT BuddeComm Theatre at the Sydney Convention and Exhibition Centre, Darling Harbour, Sydney. He is presenting six mini seminars during the duration of CeBIT. For more information see our website.
For those at CeBIT, the program, free copies of the presentations and other information is also available on our mobile website m.budde.com.au .
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