Exclusive: NBN Co withholds fibre upgrade price

 
Page 2 of 3 | Single page

Those familiar with NBN Co's processes told iTnews it would be possible, but difficult, to provide a fibre extension to homes lying just outside of the planned network boundary for under $10,000.

The FoI determination reveals NBN Co developed no formal documentation for the way it generated quotes given to the eight Tasmanian residents.

NBN Co said it instead used a "quoting tool - combined with information from commercially negotiated agreements – to calculate" the prices, including the one that has been withheld.

A summary of the quote method provided to iTnews shows NBN Co and third party contractors attempted to determine the technical viability of a fibre extension to a single house or community based on:

  • Distance from the nearest fibre distribution splitter
  • Safety and environmental factors, and
  • Required approvals for access to property and infrastructure.

NBN Co fibre network extension trial quote method

Any resulting quote would involve the total cost of new infrastructure, materials, services and processes carried out to develop and install the extended fibre cable, including third party costs.

"Each quote was based on the exact location of the premise requesting the extension," according to the quote method summary provided by NBN Co.

Sources said the biggest factor determining a fibre extension would be the cost of installation and ongoing infrastructure rental.

Most of the quotes would likely be technically feasible using aerial - rather than underground - cabling in the Tasmanian sites included in the feasibility trial.

A single "fibre split" from a nearby fibre distribution hub could be extended by up to 20 kilometres without signal degradation.

Materials, too, would remain cheap and likely already covered within existing supply contracts negotiated by NBN Co.

"It's the installation costs that is the key, and the ongoing rental cost of the space. I don't know what they would negotiate with [Tasmanian utility Aurora Energy] on that," one source said.

"If it wasn't in a fibre footprint areas, it's basically going to be a bespoke build so they're going to charge actuals plus a margin, I'd imagine, which could get quite expensive. Think about trucks going down the street with cherry pickers, having to put up aerial cabling and then you've got to get access to the poles and rental of the poles, it starts heading up quite considerably to run a single fibre."

Based on the information available, including the technical feasibility of rolling out fibre in distances up to 20km, it appears many of the quotes delivered to Tasmanian residents are likely to have been rejected by the residents based on the high cost of the extension.

An NBN Co spokeswoman said some of the eight residents involved in the trial rejected the quote once they were educated about the speed and capability of the fixed wireless connections they would otherwise receive.

Read on to page three as NBN Co caves under pressure to formalise its fibre extension policy.

Copyright © iTnews.com.au . All rights reserved.


Exclusive: NBN Co withholds fibre upgrade price
 
 
 
Top Stories
Frugality as a service: the Amazon story
Behind the scenes, Amazon Web Services is one lean machine.
 
Negotiating with the cloud email megavendors
[Blog post] Lessons from Woolworths’ mammoth migration.
 
Qld govt to move up to 149k staff onto Office 365
Australia's largest deployment, outside of the universities.
 
 
Sign up to receive iTnews email bulletins
   FOLLOW US...

Latest VideosSee all videos »

The great data centre opportunity on Australia's doorstep
The great data centre opportunity on Australia's doorstep
Scott Noteboom, CEO of LitBit speaking at The Australian Data Centre Strategy Summit 2014 in the Gold Coast, Queensland, Australia. http://bit.ly/1qpxVfV Scott Noteboom is a data centre engineer who led builds for Apple and Yahoo in the earliest days of the cloud, and who now eyes Asia as the next big opportunity. Read more: http://www.itnews.com.au/News/372482,how-do-we-serve-three-billion-new-internet-users.aspx#ixzz2yNLmMG5C
Interview: Karl Maftoum, CIO, ACMA
Interview: Karl Maftoum, CIO, ACMA
To COTS or not to COTS? iTnews asks Karl Maftoum, CIO of the ACMA, at the CIO Strategy Summit.
Susan Sly: What is the Role of the CIO?
Susan Sly: What is the Role of the CIO?
AEMO chief information officer Susan Sly calls for more collaboration among Australia's technology leaders at the CIO Strategy Summit.
Meet the 2014 Finance CIO of the Year
Meet the 2014 Finance CIO of the Year
Credit Union Australia's David Gee awarded Finance CIO of the Year at the iTnews Benchmark Awards.
Meet the 2014 Retail CIO of the Year
Meet the 2014 Retail CIO of the Year
Damon Rees named Retail CIO of the Year at the iTnews Benchmark Awards for his work at Woolworths.
Robyn Elliott named the 2014 Utilities CIO of the Year
Robyn Elliott named the 2014 Utilities CIO of the Year
Acting Foxtel CIO David Marks accepts an iTnews Benchmark Award on behalf of Robyn Elliott.
Meet the 2014 Industrial CIO of the Year
Meet the 2014 Industrial CIO of the Year
Sanjay Mehta named Industrial CIO of the Year at the iTnews Benchmark Awards for his work at ConocoPhillips.
Meet the 2014 Healthcare CIO of the Year
Meet the 2014 Healthcare CIO of the Year
Greg Wells named Healthcare CIO of the Year at the iTnews Benchmark Awards for his work at NSW Health.
Meet the 2014 Education CIO of the Year
Meet the 2014 Education CIO of the Year
William Confalonieri named Healthcare CIO of the Year at the iTnews Benchmark Awards for his work at Deakin University.
Meet the 2014 Government CIO of the Year
Meet the 2014 Government CIO of the Year
David Johnson named Government CIO of the Year at the iTnews Benchmark Awards for his work at the Queensland Police Service.
Q and A: Coalition Broadband Policy
Q and A: Coalition Broadband Policy
Malcolm Turnbull and Tony Abbott discuss the Coalition's broadband policy with the press.
AFP scalps hacker 'leader' inside Australia's IT ranks.
AFP scalps hacker 'leader' inside Australia's IT ranks.
The Australian Federal Police have arrested a Sydney-based IT security professional for hacking a government website.
NBN Petition Delivered To Turnbull's Office
NBN Petition Delivered To Turnbull's Office
UTS CIO: IT teams of the future
UTS CIO: IT teams of the future
UTS CIO Chrissy Burns talks data.
New UTS Building: the IT within
New UTS Building: the IT within
The IT behind tomorrow's universities.
iTnews' NBN Panel
iTnews' NBN Panel
Is your enterprise NBN-ready?
Introducing iTnews Labs
Introducing iTnews Labs
See a timelapse of the iTnews labs being unboxed, set up and switched on! iTnews will produce independent testing of the latest enterprise software to hit the market after installing a purpose-built test lab in Sydney. Watch the installation of two DL380p servers, two HP StoreVirtual 4330 storage arrays and two HP ProCurve 2920 switches.
The True Cost of BYOD
The True Cost of BYOD
iTnews' Brett Winterford gives attendees of the first 'Touch Tomorrow' event in Brisbane a brief look at his research into enterprise mobility. What are the use cases and how can they be quantified? What price should you expect to pay for securing mobile access to corporate applications? What's coming around the corner?
Ghost clouds
Ghost clouds
ACMA chair Chris Chapman says there is uncertainty over whether certain classes of cloud service providers are caught by regulations.
Was the Snowden leak inevitable?
Was the Snowden leak inevitable?
Privacy experts David Vaile (UNSW Cyberspace Law and Policy Centre) and Craig Scroggie (CEO, NextDC) claim they were not surprised by the Snowden leaks about the NSA's PRISM program.
Latest Comments
Polls
Which bank is most likely to suffer an RBS-style meltdown?





   |   View results
ANZ
  21%
 
Bankwest
  9%
 
CommBank
  11%
 
National Australia Bank
  17%
 
Suncorp
  24%
 
Westpac
  19%
TOTAL VOTES: 1455

Vote