Corporate Plan 2022 - NBN Co
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2022 Corporate Plan
NBN Co Corporate Plan 2022
Legal Notice Glossary While the Estimates are based on
The Corporate Plan 2022 has Defined terms within this Corporate the best considered professional
been prepared by NBN Co Limited Plan should be read in conjunction assessment, the Management team
(NBN Co) for its shareholder with the Glossary on the NBN Co and officers (as defined in the
ministers, the Hon Paul Fletcher website: https://www.nbnco.com.au/ Corporations Act) of NBN Co do
MP and Senator the Hon Simon utility/glossary-of-terms. not give any guarantee or assurance
Birmingham (Shareholder Ministers) to any third party that the results,
as required by the Public Governance, Disclaimer performance or achievements
Performance and Accountability Act This plan contains various projections, expressed or implied by the Estimates
2013 (Cth) (PGPA Act) (in particular high-level estimates and other will actually occur, and the Estimates
section 95(1) (b) of the PGPA Act), forward-looking information should not be relied on or considered
the Public Governance, Performance (Estimates). to be a representation of what will
and Accountability Rule 2014 (Cth) happen by any third party.
These Estimates are based on
(PGPA Rule), the Commonwealth Other than required according to
the best considered professional
Government Business Enterprise Reporting Obligations, NBN Co
assessment of present economic
Governance and Oversight Guidelines and its officers have no obligation
and operating conditions, present
(January 2018) (GBE Guidelines) to update the Estimates based on
Commonwealth Government policy,
and Australian Government policy circumstances, developments or
and a number of assumptions
as communicated to NBN Co by the events occurring after the publication
regarding future events and actions,
Commonwealth from time to time date of this document.
which, at the date of this document,
(together, Reporting Obligations).
are expected to take place. Management and the Board do not
This Corporate Plan has been give any guarantee or assurance
prepared for the 2021–22 financial The Estimates involve known and that the results, performance or
year (FY22) and covers the reporting unknown risks, uncertainties and achievements expressed or implied
periods FY22 to FY25. other factors beyond control that by such Estimates will actually occur.
may cause NBN Co’s actual results,
This Corporate Plan was authorised
performance or achievements to
for publication in August 2021, and
be materially different from any
was made available on NBN Co’s
future results, performance or
website on 31 August 2021.
achievements expressed or implied
by the Estimates.
© 2021 NBN Co Limited ‘nbn’, ‘business nbn’ and nbn logos are trade marks of NBN Co Limited | ABN 86 136 533 741
01 Contents Purpose and strategy 02 About NBN Co 03 Purpose, strategy and values 04 Chairman and Chief Executive Officer’s message 06 FY21 Highlights 10 Australia’s digital backbone 12 Network scale 13 Network investments 13 Network resilience and performance 20 Customers and industry 24 Customer experience 25 Industry engagement 26 Consumer affordability 28 Environmental responsibility 30 Resource efficiency 31 Protecting the environment 31 Safety and inclusion 32 Employee engagement 33 Diversity and inclusion 34 Health and safety 35 Sustainable financial growth 36 Financial performance 37 Capital management 37 Governance and transparency 38 Risk management 40
02 NBN Co Corporate Plan 2022
Purpose
and strategy
NBN Co’s
purpose is to lift
the digital capability
of Australia.
Section
Purpose
Head Australia’s Customers Environmental Safety Sustainable Risk 03
and strategy digital and industry responsibility and inclusion financial management
backbone growth
About
NBN Co
NBN Co is committed to responding As the network wholesaler, NBN Co provides
to the digital connectivity needs of access to all Retail Service Providers (RSPs)
on a non-discriminatory basis. This approach
all Australians, working with industry,
is intended to level the playing field in the
governments, regulators and community Australian telecommunications industry,
partners, to lift the digital capability enhancing competition and innovation, and
of Australia. providing greater choice for customers2 across
the country. It is through RSPs that customers
connect to the nbn™ network for access to
As a Government Business Enterprise (GBE),
high-speed internet.
the principal responsibility of NBN Co is to
build and operate the National Broadband NBN Co is delivering high-speed broadband
Network (nbn™ network) in accordance with to customers across Australia over an area of
the Commonwealth Government’s Statement more than seven million square kilometres.
of Expectations, 31 August 20211. Working in collaboration with industry partners,
NBN Co is committed to connecting Australian
The Company’s key objective is to support
homes and businesses so they can access the
Australia’s digital economy by creating
positive social and economic benefits that fast
opportunities for communities, governments
broadband enables.
and industry to drive digital adoption
and innovation.
In addition to building and operating a network
that is reliable, fast, resilient and secure,
NBN Co is committed to meeting the current
and future broadband needs of households
and businesses, including in regional Australia,
fostering productivity and innovation, and
supporting the nation to be a leading digital
economy and society.
1 https://www.nbnco.com.au/corporate-information/about-nbn-co
2 Final downstream customers to NBN Co’s Retail Service Providers (RSPs).
04 NBN Co Corporate Plan 2022
Purpose, strategy
and values
Our purpose
To lift the digital capability of Australia.
Our strategy is underpinned
by six strategic pillars:
Ensure all Australians have
access to high-speed, resilient
and secure broadband
Build capabilities for Keep NBN Co a
the future and grow great place to work,
profitability to enable underpinned by
reinvestment to benefit a customer-led culture
our end customers
Strengthen relationships Deliver a customer
with government, industry experience that drives
and communities to optimise satisfaction, use and
customer benefits network preference
Develop a product and pricing
portfolio that addresses our
customers’ diverse needs
Section
Purpose
Head Australia’s Customers Environmental Safety Sustainable Risk 05
and strategy digital and industry responsibility and inclusion financial management
backbone growth
Our values
Our values underpin the way in which we act and behave. They describe what is
important to us and guide us on how we think and interact with our customers,
each other, and our communities.
We are We are
one team fearless
Respect
each other, we create Listen, really listen,
an inclusive environment invite feedback and ask
Put team above yourself, ‘why’ to genuinely understand
recognise one another’s Speak up, knowing it’s safe and
contribution to create an expected to call things out,
even greater outcome share bold ideas
Better together, share ideas Trust and empower each
and resources across the other to make decisions
Company, partner and get things
effectively with done
industry
We We
deliver care
Start by asking,
Uphold the
‘would this make a positive
safety and wellbeing
difference for our customers?’
of each other and ourselves
Set high expectations,
Lead with purpose,
accept accountability and
do the best for our communities
honour our commitments
Be curious,
Strive and adapt,
there’s always something
being innovative and always
to learn so together
finding solutions to
we can grow
achieve excellence
06 NBN Co Corporate Plan 2022
Chairman and Chief
Executive Officer’s message
The need for reliable, fast, resilient As we have done in the past, we will continue to
and secure broadband has never been work closely with the Commonwealth to fulfill
these strategic objectives and the important
greater for the homes, businesses and
telecommunications policy goals that will help
people of Australia. lift the digital capability of Australia.
Whether it is providing access to new markets COVID-19 response
for businesses, allowing school children in rural While the impacts of COVID-19 and the Delta
areas to connect to online learning, or ensuring strain create ongoing challenges for our
the vital lines of communication in times of communities, NBN Co has continued to invest
disaster are open and accessible – NBN Co is in its network so it can meet the demands
here to support the nation and lift the digital of increased use and reliance on the critical
capability of Australia. services enabled by broadband access. We
Having completed the initial build1 of the moved quickly and decisively towards the
nbn™ network and following the declaration end of 2019 and early 2020 to respond to
that it be treated as built and fully the growing threat of COVID-19 reaching
operational by Minister for Communications, Australian shores.
Urban Infrastructure, Cities and the Arts, the Our data scientists and network engineers
Hon Paul Fletcher MP, in December 2020, studied data consumption patterns in other
NBN Co has embarked on the next stage countries, conferring with international
of its evolution to continually enhance this counterparts, particularly in Italy and the
critical communications asset on behalf of the UK, to understand the quantum of additional
Commonwealth Government for all Australians. demand that could be expected when a
Last year we announced a $4.5 billion nation goes into, and stays in, lockdown.
commitment to advance the reach and Through good planning and prior investment,
capability of our network; to enhance the the nbn™ network was already dimensioned to
digitisation of Australian businesses; and exceed the nightly peak busy hour throughput
deepen connectivity support for rural and requirements and we routinely planned for
regional communities. periods of exceptionally high traffic.
Importantly, the increased capability that these Nevertheless, we accelerated additional
investments will build into our network, and the capacity planning and investment. We knew
social and economic benefits they will unlock we would be in it for the long haul. We limited
for Australia, closely align with the objectives non-essential maintenance to minimise
of the new Statement of Expectations released scheduled, planned outages to maintain
by the Commonwealth. network availability as much as possible. We
Operating a high-performing network for the worked closely with the telecommunications
benefit of customers, no matter where they industry, key stakeholders and industry groups.
are located in Australia, while also fostering When the time came, we were ready.
competitive and efficient markets, has always In mid-March 2020, we responded to a shift
been among our highest priorities. in Australia’s internet usage patterns as
We also remain deeply committed to meeting more people worked, studied, shopped and
the current and future broadband needs of streamed more content from home. We waived
households and businesses across Australia, additional wholesale capacity charges of up to
fostering productivity and innovation, and 40 per cent for an initial term of three months,
supporting the nation on its journey to but as the crisis grew and persisted, we
becoming a leading digital economy. extended again and again – ultimately until the
1 For further details on the initial build, refer to footnote 1 on page 13.
Section
Purpose
Head Australia’s Customers Environmental Safety Sustainable Risk 07
and strategy digital and industry responsibility and inclusion financial management
backbone growth
end of January 2021 because it was the right As part of this upgrade program, we awarded
thing to do. construction contracts to Delivery Partners
The network was tested and it passed with with a total value of approximately $1.1 billion.
flying colours. We have been proud to support Importantly, this work is helping to stimulate
the nation, when the nation most needed a fast, job creation and retention through new build
strong, reliable and resilient network, and we activities that would otherwise have scaled
are continuing to invest in the digital backbone down at the end of our initial build1.
of our great nation. We have also made considerable progress
in our Hybrid Fibre Coaxial (HFC) network
Network investment update enhancement program. This program has
While the investment we unveiled last year seen the proportion of HFC customers able
was revolutionary in many ways, this year’s to access NBN Co’s higher wholesale speed
Corporate Plan is marked by the evolution and plan – nbn™ Home Ultrafast – increase from
progress of our network investment plan to 7 per cent in May 2020, to 90 per cent today.
deliver better broadband, improved customer From a total fixed-line network perspective,
experience, and greater connectivity to more and in less than a year, the proportion of
Australians than ever before. customers now able to access our Ultrafast
Since announcing that plan, we have made plans has doubled to 40 per cent and is
great progress and are pleased to confirm we climbing higher every month.
remain on track to make our highest wholesale With thanks to our employees, and industry
speed plans available, on a customer demand construction partners, we are incredibly
basis, to up to 75 per cent of homes and pleased with the progress we have made to
businesses (including more than 850,000 date. But we know we still have much to do
in regional areas) on the fixed-line network to fulfil this plan while also striving to connect
by 2023. more homes and businesses to the benefits
To coincide with the release of this Corporate made possible by the nbn™ network.
Plan, we have revealed the latest list of suburbs The investments we are pursuing as part of
and towns where an additional 300,000 homes our Corporate Plan will not only have positive
and businesses will benefit from the extension impacts on the delivery and capability of
of fibre deeper into communities. Australia’s telecommunication services –
The release of this latest tranche means more they will improve network performance and
than 1.4 million premises have now been customer satisfaction, decrease ongoing
identified in the Fibre-to-the-Node (FTTN) maintenance costs, improve the customer
network to undergo local fibre network offering for retailers, and increase the value
enhancements allowing them to become eligible of this critical infrastructure for the nation.
for Fibre-to-the-Premises (FTTP) services.
Evolving for the future
Of those premises currently identified,
some 548,000 homes and businesses are We know these investments will also repay
in the design phase, with construction work the nation in social and economic dividends
commencing on more than 135,000 premises because we have all already experienced the
to enable the greater capability promised by microcosm of the digitally-enabled world this
our network investments. will bring to reality.
Thanks to broadband connectivity, homes,
schools and businesses have been able to stay
connected and productive during the rolling
lockdowns that millions of Australians have
experienced since COVID-19 disrupted our
way of life.
08 NBN Co Corporate Plan 2022
While tragic in so many ways, COVID-19 has For us at NBN Co, this means being an
also shown us how absolutely vital it is to have efficient wholesaler that works closely with our
reliable, resilient, fast and secure broadband retail partners to drive unnecessary cost out
networks to preserve our social fabric of the industry.
and economic prosperity. Working with industry and regulators, we need
Having access to broadband has allowed to increasingly develop products and pricing
people to work and remain productive from that are more modular, flexible and simple,
their homes; it has enabled a new crop of so together we can meet the diverse needs
entrepreneurs to connect to new markets; it has of customers, whether they be small or large
meant those without the access to traditional businesses, individuals or large families.
modes of healthcare or education can now gain It means being proactive in spotting and
the benefit of those services from remote and resolving network issues, lowering barriers
rural locations. to entry and creating diagnostic tools
Of course, the economic opportunity and social that pinpoint and fix what is wrong before
support made possible by broadband access customers even know a problem exists.
is not limited to what we can do in our homes At its simplest, becoming a more efficient
with internet connectivity. wholesaler is about being able to pinpoint
Thanks to increases in digital tools and services the drivers of customer pain and cost in our
we have also seen less congestion on the roads, industry, and working together to ensure we
which has resulted in less pollution in our city can eliminate these drivers.
centres. And we have seen dramatic changes Doing so will ensure that together we
in the way cities and towns are being designed, enable more Australians to participate in
with broadband infrastructure now rightfully the digital opportunities made possible by
sitting alongside water, electricity and gas broadband access.
utilities as essential services.
This is something we remain committed to
Customer experience and industry over this Corporate Plan period. And although
collaboration we have made strong progress over the past
financial year towards this goal, we recognise
Having glimpsed what our digital futures will there is always more to do to improve customer
look like, it is absolutely necessary that the service, to address negative consumer
telecommunications industry, governments, sentiment, and in doing so enhance overall
and communities now work together to customer satisfaction.
bring the social and economic benefits of
broadband access to more Australian homes Financial performance
and businesses.
Just as it is important for us to stay focused
For us at NBN Co, our role in enabling this on customer needs and experience, we must
transition extends beyond building and continue to grow our business into a sustainable
operating the nbn™ network. It means being operation so we have the means to reinvest in
a Company that collaborates well with the network, improve service and deliver the
other businesses. benefits of this asset to all who depend on it
As a wholesaler we have a unique responsibility for business, education and entertainment.
to provide a reliable, resilient and secure service While the network was declared built and fully
that is valued by consumers and businesses operational in December 2020, we have not
alike. But to be truly successful at this, we must stopped when it comes to bringing the benefits
also enable the nation’s internet providers to of broadband to more homes and businesses.
be as successful as they can.Section
Purpose
Head Australia’s Customers Environmental Safety Sustainable Risk 09
and strategy digital and industry responsibility and inclusion financial management
backbone growth
In the 12 months to 30 June 2021, more than They have also allowed us to repay $7.8 billion
933,000 residential and business premises of our Commonwealth Government loan,
were activated on the nbn™ network, with of which $11.7 billion remains.
8.2 million premises connected to the network
at the end of the financial year. Lifting the digital capability of Australia
Despite the challenges brought on by COVID-19 In the digital world where change is constant
in the past year, we have also continued to and rapid, being a static observer is never
meet and exceed the key financial targets we enough. This is why we are investing in this
set in our Corporate Plan 2021. network today, and it is why we will continue
This includes significant revenue growth to invest in it for Australia’s future.
of 21 per cent to $4.6 billion in FY21, and We know we will face challenges as we work
earnings before interest, tax, depreciation to enhance the reach, capability and value of
and amortisation (EBITDA) of $1.35 billion. this network. But at NBN Co, we believe great
Over the next 12 months we expect to businesses are defined by how they respond
build on these strong results and will target to challenges.
annual revenue and other income in FY22 of Over more than a decade, the employees
between $5 billion to $5.2 billion and EBITDA of NBN Co, our Delivery Partners and the
in the range of $3 billion to $3.2 billion. telecommunications industry have overcome
Building these solid financial foundations countless challenges to position the nbn™
remains an important goal for us as it will network as the nation’s digital backbone.
provide the long-term flexibility we need to By working together we will again rise to new
continue to invest in the network, and the challenges, and in overcoming them, we will
customer products and services that will allow share in the successes that lifting the digital
Australian homes and businesses to thrive in capability of Australia will unleash for us all.
an increasingly digital world.
Meeting these financial ambitions to enable
reinvestment also means we can continue
to build a business that is not just valued by
its customers, but also its investors.
The quality of our assets and the investments
we are pursuing over this Corporate Plan Dr Ziggy Switkowski AO Stephen Rue
period have been recognised by the support Chairman Chief Executive
we have received through bank facilities and Officer
debt capital markets as we continue to
execute our funding strategy.
To date, we have now raised more than
$14.5 billion in bank and capital markets
debt. These transactions have served as
market validation of our long-term credit
profile and is a testament to the strong
financial foundations that have been set for
this business and the long-term outlook on
NBN Co’s ability to create socio-economic
value for the nation.10 10 NBN
NBN CoCo Corporate
Corporate Plan
Plan 2022
2022
FY21
FY21
Highlights
Highlights
Thenbn
The nbn network
network
TMTM
declaredbuilt
declared builtand
and
fullyoperational
fully operational
8.2mm
8.2
Premises
Premises
connected
connected
12mm
12
PremisesReady
Premises Readytoto
Connect(RTC)
Connect (RTC)Section
Purpose
Section
Purpose Head
Section
Purpose
Head Australia’s
Head Australia’s Customers
Australia’s Customers Environmental
Customers Environmental
Environmental Safety Safety
Safety Sustainable
Sustainable
Sustainable Risk
Risk Risk 11 11 11
and
and strategy
strategy
and strategy digital
digital
digital and
and industry
industry
and responsibility
industry responsibility and
responsibilityand inclusion
inclusion
and financial
inclusion financial management
financial management
management
backbone
backbone
backbone growth
growthgrowth
75
75
75%%%
Customers
Customers
Customers ononon
a a50Mbps
a50Mbps
50Mbps plan
planplan
ororhigher
orhigher
higher
1 1 1
1.35
$$$1.35
1.35bn
bn
bn
EBITDA
EBITDA
EBITDA
2 2 2
$$$4.6
4.6
4.6bnbnbn
Revenue
Revenue
Revenue
1 1In this
In
1 this metric,
Inmetric,
this metric,‘50Mbps
‘50Mbps ‘50Mbps
(download)
(download)
(download) wholesale
wholesale
wholesale
speed
speed speedplan’
plan’ includes
plan’
includesincludes
wholesale
wholesale
wholesaleplans
plans plansavailable
available
available
to to RSPs
RSPs
to RSPswith
with download
download
with download
speeds
speeds of of
speeds 50Mbps
50Mbps
of 50Mbps
andandand
25–50Mbps.
25–50Mbps.
25–50Mbps.
2 2 EBITDA
EBITDA
2 EBITDA is defined
is defined as as as
is defined
earnings
earnings
earningsbefore
before interest,
before
interest,
interest,
tax,tax, other
other
tax, income,
other
income,
income,
depreciation
depreciation
depreciation
andandand
amortisation.
amortisation.
amortisation.12 NBN Co Corporate Plan 2022
Australia’s
digital backbone
The nbn™ network
is creating long-term
value for Australians by
enabling greater productivity,
economic prosperity and
social connectivity.Section
Purpose
Head Australia’s Customers Environmental Safety Sustainable Risk 13
and strategy digital and industry responsibility and inclusion financial management
backbone growth
As Australia’s digital backbone, the nbn™ Network investments
network provides the infrastructure and
services to enable Australian homes and Over this Corporate Plan period, NBN Co
businesses to participate in the many social will continue to invest in the next evolution
and economic benefits that reliable, fast, of the nbn™ network. These investments
resilient and secure broadband enables. will increase the nation’s access to the
technologies and infrastructure that will
Network scale underpin Australia’s transition to a smarter,
digitally-enabled economy.
After completing the initial build1 of the
Last year, the Company unveiled the next
nbn™ network in FY20, NBN Co passed
phase of investment in the nbn™ network:
the important milestone of being declared
a $4.5 billion commitment to make the highest
built and fully operational by Minister for
nbn™ wholesale speed plans available in more
Communications, Urban Infrastructure,
areas across Australia and to advance the
Cities and the Arts, the Hon Paul Fletcher MP,
capability, reach and value of this critical asset
in December 2020. While the network is
for the nation.
accessible to almost 12 million premises
with 8.2 million active customers, NBN Co The network investment plan has three
will continue its network rollout to homes components:
and businesses as new premises are • network upgrades to make NBN Co’s
built around Australia. highest wholesale speed plans available,
Having completed its FY21 construction as demand arises, to up to 75 per cent of
objectives, the Company will continue to households and businesses in the fixed-line
connect new homes and businesses that require network by 2023 (and up to 68 per cent in
access to fast, reliable and secure broadband. the total network)
NBN Co also remains committed to connecting • a package of initiatives to collaborate with
the remaining 11,000 complex installations. industry to help deliver enhanced digital
These premises include difficult to reach capabilities for businesses across Australia
homes and businesses, new development sites, supporting innovation, productivity
and heritage and culturally significant sites. and growth
The Company has already successfully • the creation of a dedicated fund to co-invest
connected many of these premises but with governments or local councils to
expects there will always be a small number continue to enhance broadband services for
of premises that, due to land access and Australia’s regional and remote communities.
permission issues, may not be able to be
connected within expected timeframes.
1 NBN Co’s build completion commitment was that all standard installation premises in Australia are able to connect to the
nbn™ access network as at the build completion date. This excludes premises in future new developments which will be an
ongoing activity for the Company beyond the build completion date. It also excludes a small proportion of premises defined
as ‘complex connections’ – which includes properties that are difficult to access, culturally significant areas and heritage
sites – where connection depends on factors outside NBN Co’s control such as permission from Traditional Custodians,
and where network construction to allow such premises to connect will be an ongoing activity of NBN Co.14 NBN Co Corporate Plan 2022 The targeted and demand driven nature According to analysis by economics firm of these investments is expected to drive a AlphaBeta, commissioned by NBN Co, these commercially attractive return on investment, network investments will help create an building on the network investments that estimated 25,000 direct and indirect jobs over NBN Co has made to date. this Corporate Plan period. The investments are These investments will also increase network also estimated to add $6.4 billion annually to performance, customer satisfaction and the economy from 2024, of which $1.5 billion improve long-term cost efficiencies to will flow into Australia’s regional economies. enable further reinvestment in the future. NBN Co and its partners commenced work on the network investment plan as soon as it was announced in September 2020. These investments are also helping stimulate job creation and retention through new build activities that would otherwise have scaled down at the end of NBN Co’s initial build1. Network investment progress Since the release of Corporate Plan 2021, NBN Co has made the following progress on its network investment plan: • Identified 1.4 million FTTN premises eligible for FTTP upgrades. Of these premises identified, some 548,000 homes and businesses are in the design phase and 138,000 have been released for construction work • Awarded construction contracts to Delivery Partners with a total value of approximately $1.1 billion as part of FTTN upgrade program • Upgraded the HFC network with additional capacity and capability to make nbn™ Home Ultrafast plans available to 90 per cent of premises within the HFC footprint • Reviewed the technology, processes and contract models for lead-ins to ensure a seamless customer experience for on-demand upgrades of Fibre-to-the-Curb (FTTC) and FTTN premises to FTTP • Created 284 nbn™ Business Fibre Zones enabling access to CBD pricing by RSPs for business-grade broadband services • Opened the application process to local and state governments seeking to co-invest in regional broadband upgrades benefiting residents, businesses and communities in their states • Engaged RSPs on products, pricing, service levels and co-design of processes for high-speed tiers to ensure industry support. 1 For further details on the initial build, refer to footnote 1 on page 13.
Section
Purpose
Head Australia’s Customers Environmental Safety Sustainable Risk 15
and strategy digital and industry responsibility and inclusion financial management
backbone growth
Making our highest wholesale speed plans FTTN upgrades
available to more Australians
The FTTN to FTTP network upgrade program
NBN Co remains on track to make its highest has been designed to enable up to two million
wholesale speed plans available to up to premises to access the wholesale download
75 per cent of households and businesses speed tier of up to 1Gbps (nbn™ Home Ultrafast)
in the fixed-line network by 2023 (and up to on demand.
68 per cent in the total network). This plan is This fibre-deepening program re-uses the
being achieved through the following network Distribution Fibre Network (DFN) that was
upgrade initiatives: deployed as part of the original FTTN build,
• building fibre deeper into parts of the FTTN which means NBN Co builds the Local Fibre
and FTTC footprints, enabling premises to Network (LFN) and only completes the lead-in
move to a FTTP service when they order to premises when an order is placed for a higher
a higher speed plan. This is not a forced speed tier. This allows NBN Co to prioritise
migration and construction of fibre into the investment to meet customer demand.
home will be linked to demonstrated demand NBN Co’s selection criteria for the FTTN to
from households FTTP upgrade program is based on areas where
• upgrading capacity on the HFC network the Company anticipates strong demand for
to enable access by more customers on higher speeds; where it can deploy with speed
this network to NBN Co’s higher wholesale and agility; where it can provide maximum
speed plans. benefit to the most customers; and where its
investment is most likely to spread and multiply
economic activity across the nation.
Total nbnTM fixed-line premises in Australia – Download speeds potentially available
Up to 1Gbps
100+ Mbps
50+ Mbps
90%
20%
72%
Fixed-line
footprint 2020
Up to 1Gbps
100+ Mbps
50+ Mbps
40%
90%
73%
Fixed-line
footprint at
August 2021
Up to 1Gbps
100+ Mbps
Up to 75%
50+ Mbps
Following
95%
85%
implementation
of the network
investment plan16 NBN Co Corporate Plan 2022
NBN Co expects to initiate a small-scale FTTC upgrades
launch to enable the first customers to place
NBN Co has implemented new plans to deliver
orders with RSPs for fibre lead-ins and higher
its highest wholesale speed tiers in the FTTC
speed services in eligible areas in late 2021.
footprint to ensure more homes and businesses
Eligibility can access the speed and capability achieved
through deeper fibre deployment.
• NBN Co has proposed that premises served
by FTTN in eligible areas will need to order The Company will now deliver its on-demand,
a plan based on wholesale speed tiers of full fibre upgrade program to single-dwelling
100/20 megabits per second (Mbps) or higher units in the FTTC footprint, which aims to
to qualify for a full fibre upgrade improve customer experience and help
generate a greater return on investment.
• customers will be able to order higher speed
tier services across selected parts of the Using FTTP as the upgrade path for higher
FTTN footprint by the end of 2021 speeds in the FTTC footprint provides a
range of advantages when considering
• there is no plan to force migration onto the long-term costs, operational cost savings
FTTP upgrade. The existing FTTN network through IT simplification, and consistency
will continue to service customers who remain with the Company’s objective to deepen fibre
on this network. deployment across its network.
Physical build scope
Customer Lead-ins LFN1 DFN2 Exchange
Scope Lead-ins installed LFN to FTTP Use existing Upgrade Exchange
on-demand multi-port in scope DFN to FTTN node equipment as needed
Aerial fibre
network
FTTN nbnTM
node exchange
OLT OLT
MP
Pit Underground Pit
fibre network
1 Local Fibre Network.
2 Distribution Fibre Network.Section
Purpose
Head Australia’s Customers Environmental Safety Sustainable Risk 17
and strategy digital and industry responsibility and inclusion financial management
backbone growth
Eligibility Connecting new developments
• NBN Co has proposed that premises served NBN Co is committed to being the first
by FTTC will need to order a plan based on choice provider of broadband services to new
wholesale speed tiers of 250Mbps or higher residential and business premises as they are
to qualify for a full fibre upgrade built around Australia.
• customers will be able to order higher speed The Company works directly with property
tier services across selected FTTC footprint developers, as well as their consultants and
in 2022. The entire 1.5m premises currently builders, through a specialised, national team
served by FTTC will be available for the of delivery and deployment specialists.
on-demand upgrades by the end of 2023. NBN Co supports and welcomes all property
developers, irrespective of the size, scale or
HFC upgrades
location, to apply via the Company’s public
The HFC upgrade program will provide website or through the ‘New Developments
access to NBN Co’s higher wholesale speed Portal’ to commence the process for
plan, nbn™ Home Ultrafast, across the nbn™ network deployment in their property
full HFC footprint of 2.5 million premises development.
by the end of 2023. The Company provides a range of delivery
All of the 2.5 million premises in the processes that are tailored to the varied
HFC footprint can access wholesale download nature of property developments. Simple
speed tiers of up to 250Mbps, and around projects – where no new pit or pipe needs to
90 per cent of HFC premises can access be constructed – are eligible for an automated
nbn™ Home Ultrafast. delivery process. Larger and more complex
In addition to uplifting the speed capability projects – including where new pit or pipe
of NBN Co’s HFC network, the Company’s needs to be constructed or new network
engineering teams continue to improve the infrastructure needs be deployed – are
resilience and reliability of the network though managed by NBN Co’s expert teams and
the implementation of new and enhanced partners to ensure on-time performance is
network support platforms. achieved, delivery is proactively managed,
and single points of contact are available.
NBN Co is continually optimising its delivery
processes to ensure they are as efficient
and effective as possible. The Company
continues to listen to the feedback of property
developers, consultants and builders, and
is taking steps to preserve and amplify key
elements of its delivery processes that are
valued by the industry.18 NBN Co Corporate Plan 2022
Lifting the digital capability of Supporting regional and remote Australia
Australian businesses
Delivering broadband services across Australia
Working in partnership with RSPs, NBN Co and supporting communities to get the best
established a multifaceted package of initiatives out of their nbn™ connections remains core
to support business innovation, productivity to NBN Co’s purpose.
and growth. In September 2020, NBN Co established
The centrepiece of this investment included a $300 million co-investment fund to
the creation of 240 nbn™ Business Fibre Zones further enhance broadband services for
across Australia. regional and remote households, businesses
In August 2021, NBN Co increased the and communities.
number of these precincts with the creation Over this Corporate Plan period, the Regional
of 44 new nbn™ Business Fibre Zones that will Co-Investment Fund aims to:
deliver premium business-grade fibre to an • improve broadband services for Australia’s
additional 60,000 eligible businesses premises regional, rural and remote communities
across Australia.
• strengthen relationships with government,
Together, these 284 Business Fibre Zones will industry and communities to optimise
deliver high-speed fibre to 850,000 business customer benefits
premises across the country. Importantly, 112 of
these zones are located in regional areas where • provide immediate economic stimulus
they will provide business-grade fibre access to through infrastructure enhancements
more than 300,000 eligible business premises. • and help regional and rural communities
The launch of the nbn™ Business Fibre Zones realise the socioeconomic benefits that
has enabled RSPs to order Enterprise Ethernet access to high-speed broadband can unlock.
for business premises within these regions at
The primary focus of the Fund is to uplift
CBD pricing. Additionally, if an RSP signs up for
digital capability in regional and remote
a three-year Enterprise Ethernet plan, there is
areas, outside capital cities, that are served
a $0 upfront connection cost1.
by NBN Co’s Fixed Wireless or Satellite
This initiative is helping to level the business infrastructure, by increasing the number of
playing field so small and medium businesses premises that can access technologies that
can access the advantages of bandwidth support higher speeds.
intensive applications such as online
If the full allocation of funds is not used for
collaboration and cloud-based tools.
co-investment in the initial funding round,
In addition to the 284 established zones, NBN Co may make any remaining funds
NBN Co has also created a $50m co-investment available for co-investment in one or more
fund to engage state governments and local subsequent funding rounds. Details of any
councils to create future Business Fibre Zones. future funding rounds will be determined at
a later stage.
1 NBN Co is a wholesaler and does not control costs charged by RSPs. Customers should contact their preferred RSP to ask
about availability, and any fees and charges that may be applicable. These pricing offers are not available for most premises in
the nbn™ Fixed Wireless or Satellite footprints or for most premises which have complex connections – further costs are likely
to apply to these premises.Section
Purpose
Head Australia’s Customers Environmental Safety Sustainable Risk 19
and strategy digital and industry responsibility and inclusion financial management
backbone growth
Connecting First Peoples communities Fixed Wireless and Sky Muster™
Satellite investments
NBN Co’s vision for reconciliation is centred
on deepening relationships with First Peoples NBN Co’s Fixed Wireless and Sky Muster™
communities, connecting and creating Satellite networks continue to play a vital role
opportunity, and guiding positive outcomes connecting Australians across regional and
by lifting the digital capability and unlocking rural parts of Australia.
the social and economic benefits of the While NBN Co faces unique challenges
nbn™ network for First Peoples. traversing the vast Australian distances and
The Company launched its fourth Reconciliation harsh environments, the Company remains
Action Plan (RAP) in 2020 with an increased committed to investing in, and innovating
emphasis on connecting more communities, these networks to further improve performance
delivering customised product offerings and and customer experience.
educational programs to lift digital literacy. Over this Corporate Plan period, NBN Co
During FY21, key achievements under RAP IV will continue to optimise the performance,
included: capacity and resilience of its Fixed Wireless
• connecting over 50 remote communities and Sky Muster™ Satellite networks within
where there is a First Peoples its finite spectrum and resource limitations.
presence, to enable ongoing connectivity Regional Broadband Scheme
during COVID-19 restrictions
• collaborating with key government and The Regional Broadband Scheme (RBS)
peak industry bodies to improve telehealth was established by the Commonwealth in
capabilities and digital capability for January 2021 to ensure transparent and
indigenous arts centres sustainable funding arrangements are in place
to help fund essential broadband services to
• launching Liakukana Connect, an internal regional, rural and remote Australians.
network to bring NBN Co’s First Peoples’
employees together and support mentoring NBN Co has invested significantly in its Fixed
and leadership growth opportunities Wireless and Satellite networks which continue
to deliver economic and social benefits to
• launching the LAKUN team, which consists regional communities.
of internal action owners and champions from
different business units, to build awareness As at 30 June 2021, NBN Co has incurred
around the Company’s reconciliation capital expenditure of approximately $5 billion
journey and support NBN Co in delivering on on these networks. From a total operating
its First Peoples strategy and RAP actions cost perspective, these networks are loss
making and have been historically funded
• celebrating NAIDOC and National via an internal cross-subsidy from NBN Co’s
Reconciliation week with daily events, fixed-line networks.
including the launch of our fourth RAP and
an inaugural Welcome to Country performed Under the RBS, telecommunications providers
at our North Sydney offices. that own or are responsible for fixed-line
networks capable of providing NBN comparable
Over this Corporate Plan period NBN Co services are required to pay a monthly
will focus on the Company’s staff and their contribution to help fund the cost of providing
reconciliation journey, continuing efforts to high-speed broadband to regional communities.
increase employee awareness and engagement
and continue to connect communities safely,
lifting digital capability and unlocking social
and economic benefits of the nbn™ network.20 NBN Co Corporate Plan 2022
However, as NBN Co is the major fixed-line Investing in resilience
network operator in Australia, the Company
In FY21, NBN Co responded to the challenges
continues to pay around 95 per cent of total
of climate change and improved the resilience
cost of connecting Australians via its Fixed
of its network.
Wireless and Satellite networks.
Over this Corporate Plan period, NBN Co
Network resilience and performance will continue to invest in resilience initiatives
including:
The nbn™ network plays a critical role in
keeping communities connected, schools • introducing a network health scorecard to
active, businesses operational and the provide a stronger measure of resilience
nation productive. and recovery at a network, customer and
geographic level
Restoring and providing the essential
communication services that families rely on to • developing real-time proactive monitoring
stay in contact with each other and emergency for key network break points to identify
services during the bushfires, floods and intervention opportunities to prevent or limit
cyclones that regularly impact Australia, will network disruptions
always remain the Company’s highest priority • working on the power dependency and
during these events. resilience of the nbn™ network. This includes
The nbn™ network is supporting 50Mbps trialling and introducing improved power
download speeds to 90.45 per cent of resilience for network assets, and also the
the fixed-line footprint and 25Mbps to identification of power network hotspots
98.55 per cent of all premises. where the Company can work directly with
commercial power providers to improve the
NBN Co remains committed to having in place
resilience of the power network
ongoing proactive and reactive programs
to resolve the remaining lines including the • maturing NBN Co’s network asset lifecycle
progressive end to co-existence and the management with programs to improve how
ongoing network assurance program. and when the Company replaces network
and facilities equipment, including batteries.
Where a particular premises may not receive
25Mbps, there are a number of reasons for
this including coexistence with legacy services
during a transitional period, in-home wiring
issues, environmental and operational factors,
and other network issues.
Operating a live network requires ongoing
maintenance to address issues that arise over
time. A small proportion of the network may
be performance affected at any given time.
NBN Co provides transparency on service
performance and makes assurance processes
available for RSPs to troubleshoot and if
necessary, report and resolve issues within
the nbn™ network.Section
Purpose
Head Australia’s Customers Environmental Safety Sustainable Risk 21
and strategy digital and industry responsibility and inclusion financial management
backbone growth
Emergency response and community Cyber security
communications
The nbn™ network is a critical piece of national
To ensure NBN Co can support communities in communications infrastructure, and ensuring
times of need, the Company continues to invest it remains secure and resilient at all times
in its resilience and preparedness activities. remains the Company’s highest priority.
This includes: NBN Co has a dedicated Chief Security Officer
and Security Group that works closely with
• investing in temporary network infrastructure Australia’s national security agencies including
to expedite network recovery the ACSC (Australian Cyber Security Centre)
• satellite network infrastructure redundancy and ASD (Australian Signals Directorate) to
to support customers affected by significant prepare against any potential security threats.
commercial power outages. NBN Co’s dedicated and experienced cyber
security team works closely with all the
The work NBN Co is undertaking to build
Company’s business units in terms of security
a more resilient network and expand its
practices, planning and resourcing. As part of
support capability will remain a focus over
this, every NBN Co employee is made aware of
this Corporate Plan period and will continue
their individual responsibility to uphold cyber
to evolve over time.
security best practice.
The team pursues an aggressive threat
identification and mitigation program to protect
against external actors. The Company remains
ever vigilant, constantly monitoring and seeking
to improve our threat prediction, detection
and protection levels. Enterprise wide cyber
education and training is a key element in
ensuring that all NBN Co employees understand
their individual responsibility in protecting this
critically important asset.22 NBN Co Corporate Plan 2022
CASE
STUDY
Supporting local communities in their time of need
Through Western Australia’s Tropical Cyclone The important role NBN Co plays in keeping
Seroja, and the devastating floods that communities connected in times of disaster
impacted the east coast of Australia, NBN Co was recognised in December 2020 when
supported communities and worked closely the Company secured funding provided by
with emergency services, Australian Defence the Australian Government’s Strengthening
Force, power utility providers, and RSPs. Telecommunications Against Natural Disasters
nbn™ Local – the community engagement (STAND) package to increase the number of
arm of NBN Co’s Regional Development & temporary emergency network services.
Engagement (RDE) business unit – continues NBN Co, in partnership with the Government,
to play a critical role in supporting local has now deployed five Road Muster trucks,
communities and ensuring they can get the 12 transportable, fly-away satellite kits
broadband connectivity they need to stay and plans to deploy up to 2,000 community
connected to the online world. Wi-Fi or business nbn™ Satellite Services at
During times of disaster nbn™ Local teams nominated evacuation centres and emergency
were deployed in satellite-enabled Road Muster services organisations across the nation.
trucks to provide affected communities access This included the launch of the first nbn™
to broadband, charging facilities for mobile Disaster Satellite Service in Namadgi,
phones, information on weather, bushfire Australian Capital Territory, boosting the
warnings and news, along with entertainment support offered to communities and emergency
for children of displaced families. services personnel during and in the aftermath
In many cases, these measures provided of emergency events, such as bushfires
the only connectivity available for affected and floods.
communities to access critical information This service will be expanded to other areas
and get in contact with loved ones in the and provides a back-up communications
immediate aftermath of these disasters. connection using satellite technology during
an emergency event, providing free full satellite
broadband functionality, including Wi-Fi and
video streaming.Section
Purpose
Head Australia’s Customers Environmental Safety Sustainable Risk 23
and strategy digital and industry responsibility and inclusion financial management
backbone growth
Community support and network As lockdowns increasingly spread across
performance through COVID-19 the nation due to the resurgent Delta strain,
NBN Co again introduced credit relief to
The enduring effects of COVID-19 have led to
eligible RSPs.
a major change in the way homes consume
and use their broadband connection. An additional $5.2 million credit relief payment
was made available to reduce retailers’
With more people working and learning from
additional wholesale data costs brought on
home, there has been an increased reliance
by the incremental increase in usage during
on telecommunications operators to ensure
the peak evening entertainment hours,
their networks remain resilient, secure and
and to help to ensure they do not fall short
engineered to meet future demand.
of their customers’ data demands during
Continued investment in the nbn™ network the recent lockdowns. The Company also
has allowed extra capacity to be brought on committed to make further COVID relief
line quickly to meet much higher demand and credit payments to retailers for August and
increased reliance on broadband connectivity. September 2021.
NBN Co provided three main measures to NBN Co will continue to collaboratively work
respond to the challenges presented by with RSPs to support customers data needs
COVID-19: through the impacts of COVID-19 and help
1. Offering up to 40 per cent additional ensure they have access to the digital tools
Connectivity Virtual Circuit (CVC) capacity and services they need to stay connected.
to RSPs at no additional charge. While Australians depend more than ever
2. Doubling the average data download limits on broadband connectivity for their online
on Sky Muster™ Satellite services to help needs, the nbn™ network continues to perform
ensure those in rural and regional Australia incredibly well. The investments made to
can stay connected. date in the nbn™ network, coupled with the
investments over this Corporate Plan period,
3. F
inancial assistance packages to help RSPs
will continue to place the network in a strong
connect low income households with home
position to meet Australia’s future data demand.
schooling needs, support emergency and
essential services and assist small and
medium businesses and residential customers
facing financial hardship.24 NBN Co Corporate Plan 2022
Customers
and industry
NBN Co’s ability
to create value for
Australians is underpinned
by the strong and
collaborative relationships
it has with its customers,
the industry and the
communities it
serves.Section
Purpose
Head Australia’s Customers Environmental Safety Sustainable Risk 25
and strategy digital and industry responsibility and inclusion financial management
backbone growth
Customer experience Over this Corporate Plan period NBN Co
will pursue a range of key initiatives, in
As NBN Co works and invests to lift the digital collaboration with industry and regulators,
capability of Australia, it will maintain its focus to ensure customers get the best service
on meeting the current and future broadband and experience from their nbn™ connection.
needs of residential and business customers.
NBN Co will also continue to evolve its
NBN Co maintains a company-wide focus approach to outage management, including
on improving customer experience from end-to-end communication management with
connection to daily use, the reliability of the the industry to support customers in the event
network, and the rapid resolution of any of planned and unplanned network outages.
service incidents.
Work with RSPs to discover and develop Uplift the service experience of
a range of insights and data to identify key micro, small and medium businesses
areas of customer dissatisfaction in the connecting to the nbn™ network.
assurance process, with solutions scoped
and prioritised with industry for delivery.
Business
Focus ConnEX
on Fix
Customer Journey
RSP
Evolution
tools
Develop and deliver tool sets and Implement the optimal experience for
data feeds to help RSPs better customers upgrading or transitioning to an
support customers, including nbn™ service. This will consider the future
network, service delivery, and requirements of customers to ensure that
operational diagnostics and data. NBN Co’s service delivery, in collaboration
with industry, is meeting expectations and
anticipating future shifts and requirements.26 NBN Co Corporate Plan 2022
NBN Co remains committed to improving • improving service workflow for RSPs by
customer experience to ensure the full benefits publishing APIs, thereby enabling better
of the nbn™ network can be realised. access to nbn™ system and assurance tools.
NBN Co’s customer experience strategy sets
Over the next two years, NBN Co expects
clear expectations for the Company to meet as
to accelerate its IT transformation strategy,
customers are connected, as well as improving
with a focus on introducing new functionality
their everyday experience and ensuring any
and more efficient systems to streamline
issues are resolved promptly.
interactions with industry partners. It is
The Company continues to publish its expected these will potentially reduce costs
Transparency Dashboard which provides for the industry, while also improving overall
regular updates on the growth in connections, customer experience.
fault numbers, restoration timeframes, and
The Company will also look to reduce the
the level of congestion on the network. These
number of systems and associated licensing
metrics are published monthly and can be
and support costs, as well as improve the way
found online at: https://www.nbnco.com.au/
NBN Co uses data to make business decisions.
corporate-information/about-nbn-co/updates.
Making it easier to deal with NBN Co Industry engagement
A successful and sustainable NBN Co
In its Corporate Plan 2021, NBN Co announced
depends on a telecommunications industry
investments to simplify its IT systems,
that can connect with customers and provide
reduce hardware and software complexity,
the services they need to thrive in a digital
and move the Company towards software
economy.
defined networks.
NBN Co is committed to ongoing consultation
NBN Co’s digital roadmap sets out how the
and collaboration with RSPs and regulators,
Company is simplifying technology systems
to ensure both the industry and NBN Co can
architecture to develop improved interactions
succeed together.
with RSPs, enable better service for customers,
and support its company-wide business Wholesale Broadband Agreement
simplification.
NBN Co transitioned RSPs to a new two-year
NBN Co has made solid progress against its
Wholesale Broadband Agreement (WBA4)
three-year digital roadmap strategy in FY21.
on 1 December 2020.
This includes:
The key service enhancements in WBA4
• decreasing the number of applications on
include:
the NBN Co platform by 10 per cent
• lower entry-level prices and greater pricing
• removing duplicate processes from the
certainty and simplicity for RSPs
Company’s technology system architecture
• stronger service delivery and performance
• commencing consolidation of nbn™ portals
rebates that will flow through to affected
onto one platform to reduce the number
customers in many cases
of touch points for RSPs to improve order,
trouble ticket and assurance processes for • substantial improvements to the fix
industry partners experience, including new commitments
to fix key speed and stability issues
• reducing the hours of systems downtime
per month due to planned and unplanned • new accountabilities – for NBN Co and for
outages RSPs – that aim to drive better customer
experience outcomesYou can also read
