NBN Co puts target on planned enterprise user base

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NBN Co puts target on planned enterprise user base

Has until FY22 to achieve it.

NBN Co has set a target to connect 900,000 enterprise and government customers to its network by FY22.

It appears to be the first time the network builder has put a firm target in the public domain for how it expects its incursion into the enterprise and government space to work.

The company has previously only put a revenue target on the venture, saying last year it wanted business revenue to “make up between 15-20 percent of [its] overall revenues once in steady state operations”.

NBN Co said this week that it is “committed to connecting 900,000 small, medium, and enterprise businesses and government entities by FY22… [through its] business sales and marketing segment”.

An NBN Co spokesperson said the 900,000 target business and government customers would more or less fit within the eight million homes and businesses expected to have an active NBN connection by 2020.

However, given the enterprise and government (E&G) target runs for two years beyond the 2020 number, and that E&G only became a target market for NBN Co last year, it would appear there is only some overlap in the two numbers.

It could mean that 10 percent of users on the network contribute up to 20 percent of overall revenues by FY22.

NBN Co has spent the past year building its internal capabilities to prepare to raid the enterprise and government markets, which have previously been served by private telecommunications operators.

It is set to offer capped price services and priority treatment to E&G users that switch to NBN services.

Business customers are also set to be the the first to benefit from network improvements such as the use of G.fast technology, which promises fibre-to-the-curb and fibre-to-the-basement users theoretical speeds above 100Mbps.

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