NBN: Frozen HFC connections dissipating over the next few months

Careful observers of the weekly deployment numbers of the National Broadband Network (NBN) company in Australia will note that the number of Zero Service Clbad (SC0) premises has increased significantly over the past year. from one year after the November 2017 break on the sale of hybrid fiber-coaxial (HFC) connections.

In May, NBN called the ring-fencing momentary boost in the number of SC0s, but has remained high since, with 1.4 million locals currently unable to connect to the network for all types of technologies.

Speaking ahead of Senate estimates Tuesday night, NBN chairman Stephen Street said that of the 1.4 million SC0 installations, 1,251,000 were HFC connections, but that salvation would be Coming soon.

"Many local HFCs will be ready to be connected, not bad in the next four months," Rue said.

NBN had a hard time explaining to senators that the number did not represent a static set of premises, a number leaving the SC0 clbadification when relaunching the HFC network, because more and more additions were made to the network.

"By the end of the month, all these fenced premises will be released, so we have made progress from April of last year.We have started to release the HFC network and test all our processes again, and then, in June and July, we started large-scale resuscitation, "said Kathrine Dyer, NBN Deployment Manager.

"We have developed many new areas in the field of HFCs while taking over the premises."

Read: ACCAN: Low-income Australians can not afford NBN

By the end of 2018, NBN had 512,000 active HFC installations, the company said in its half-year results last week, out of a total of 4.7 million active connections. In total, the NBN network has 9.5 million premises labeled as ready for operation.

Street told Estimates that the company was "on track" to reach its September target of reducing congestion on its fixed wireless network to less than 1% with speeds below 6 Mbps in peak hours.

NBN's professional wholesale satellite service will also see a smooth launch in the middle of the year, before a full launch by the end of 2019, Rue added.

Australia is one of the most affordable broadband markets

The CEO of NBN has opened with a claim that it is unlikely that the country's NBN retailers agree that Australia is one of the most affordable broadband markets. Citing a study by AlphaBeta of 4,500 products and tariff plans for AlphaBeta in 22 countries, Rue said Australia ranked seventh.

"The average broadband price in Australia equals 1.4% of Australian per capita income, making it the seventh lowest price among the 22 countries badyzed," Rue said.

"And that should not surprise us, as we have to keep reminding ourselves of one of the initial goals of the NBN, which was to allow increased competition in the retail market by providing a service for the retail market. wholesale open access only to any retailer to sell a product. "

In October, Aussie Broadband decided to put aside its cheaper services once NBN ended its discount on connections at 50 Mbps.

"In our opinion, it will not be possible for vendors offering less than AUD 55 the monthly floor price and an unlimited offer at AUD 69 using packages," said at the time the Broadband physician Phillipp Britt.

"Suppliers whose price is below this price level will most likely change their customers to provided HVAC bandwidth."

Also: TPG retains first place for download speeds in the fourth NBN report

The retailer eliminated any less than $ 55 a month fee package, which allowed customers to receive 12/1 Mbps or 25/5 Mbps service with less than 100 GB of data included.

Last week, Britt said that HVAC costs are preventing her company from offering unlimited data on packages faster than 100Mbps.

"The HVAC pricing structure is the main limiter here, we only have 2.5 Mbps of CVC allocated under the bundled model, and someone with an unlimited bundle on those higher levels could actually cause damage." said Britt.

The Australian broadband leader announced that the price of 100 Mbps would drop, but that it would take a write-down of the NBN so that the pressure on prices is pbaded on to consumers.

"They can not keep the AU $ 51 [average revenue per user] the amounts they are trying to reach because the mobile guys will wipe the floor with them, "Britt said.

"It's hard to predict when this will happen – they've released a short-term promotion on 100 / 40Mbps services right now, but there are certain conditions that require a customer to stay with that service provider for a period of X times, so Is risky to implement ".

At the same time, Rue told the Joint Standing Committee to review the NBN case last week that there would be no problem of depreciation in which the company would need to reduce its value, and those who called for such action just came down wholesale prices.

"When people say that there should be a write-down, I do not think that's what they're really calling for, they're basically asking for the wholesale price to drop significantly," said Mr. Street.

"Calls for a sharp reduction in wholesale prices are jeopardizing the long-term viability of society … without that, I sincerely believe that you are jeopardizing the country's digital future and all the benefits that come with it. arise. "

Rue reiterated Tuesday night that NBN was betting on business services and customers were climbing the speed ladder for the company to reach its AU $ 51 average revenue per user (ARPU) goal, which will generate a flow of money. positive cash for NBN.

Related coverage

NBN's half-yearly income climbs to A $ 1.3 billion as CEO is confident of positive cash-flow by FY2010

9.5 million locals are now ready to operate, while NBN has announced a business turnover of 1.3 billion Australian dollars and a negative EBITDA of 477 million Australian dollars for the first half of the year. exercise 19.

Telstra blames NBN for a loss of 500 million Australian dollars in first half earnings

Telstra gained mobile customers, but lost revenue due to the migration of its customers to the NBN.

Optus also credits NBN with declining profits

Optus has announced a nine-month net profit of A $ 431 million and an EBITDA of nearly A $ 2 billion for a business turnover of A $ 6.8 billion.

NBN finally has a majority network at 50 Mbps or faster

People will switch to higher speeds on the national broadband network if its prices are reduced.

People who claim a write-down of NBN actually want a dramatic price reduction: the CEO of NBN

NBN says that in case of declining wholesale prices, the digital future of Australia is over.

Pretty good broadband 5G fixed wireless could change everything

Fixed broadband will always be better, but it could be at 5G what Betamax was at VHS.