NBN products demystified

NBN products demystified

The Federal Government has shed more light on the type of products the NBN will offer through the release of NBNCo’s business case summary

The Federal Government has shed more light on the type of products the National Broadband Network (NBN) will offer through the release of NBN Co’s business case summary.

Download the document here

The Government has released a summarised version of the NBN Co’s business case report after discussions with key independents less than 24 before Senate is due to vote on the telco reforms bill.

The bill paves the way for the structural separation of Telstra’s retail and wholesale arms as well as the finalisation of the $11 billion non-binding agreement between Telstra and NBN Co.

Labor had repeatedly refused to release the business case claiming the report contained sensitive information that cannot be released to the public.

The 36-page document covers a number of topics including a detailed timeline for product releases and the types of products offered through the NBN.

NBN Co has noted many times it is committed to be a wholesale-only provider.

According to the summary, customer trials on the mainland are slated to commence in April next year with NBN Co aiming to connect at least one mainland-based ISP.

Customers keen to trial the services will be offered a free subset of products.

NBN Co will offer five different types of product ranges with features to caters for residential and business customer needs. The entry-level product will offer 12Mbps download speeds and 1Mbps upload speeds offered at a competitive price.

Product drop one is intended to be used for the testing phase and involves up to 100Mbps broadband and telephony services.

Product drop two is imbued with entertainment capabilities with ISPs able to stream IPTV services on top of broadband and telephony services down the same cable through a multicast technique.

Product drop three is intended to address the SMB market and has additional functions such as the ability to connect multiple business locations while product drop four allows ISPs to offer speeds of up to 1Gbps for enterprise users.

The last product set boosts reliability for mission critical locations such as hospitals with reduced risk of outages.

Pricing is stipulated to be standardised so ISPs “will have to pay the same amount, irrespective of where they are based”.

NBN Co will also charge the same mount for basic access through fibre, fixed wireless and satellite technology.

Satellite services will be used to service remote locations.

“Based on take up and speed usage growth assumptions, NBN Co anticipates being able to reduce real prices for all products and nominal prices for all products, except the basic service offering, while maintaining an internal rate of return above the Government long-term bond rate,” according to the business case summary.

The Prime Minister, Julia Gillard, claimed this meant the NBNCo is financially viable.

NBN Co expect to be ready to offer its first commercial service by September 2011.

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Tags Telstranbn coNational Broadband Network (NBN)business acse summary


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