Confused about what Telstra’s $11 billion deal with NBN Co means? You’re not alone. It’s a complex agreement which took the best part of several years to develop. Happily, NBN Co has provided us with this handy infographic to clear it all up — click to get it enlarged. We hope it all makes sense now.
Image credit: NBN Co
No mention of Telstra Velcoty fibre estates, only copper and HFC?
I assumed NBNCo would aquire Telstra Velocity fibre asap under the agreement, giving NBNCo a quick win in subscriber numbers.
No. Telstra Velocity is covered under Greenfields I think. Also you have to remember Velocity is a very small sector of the market. If push comes to shove, NBN Co can have infrastructure competition in those areas.
“Telstra must exclusively use the NBN as the fixed line connection to premises in the NBN fibre footprint.”
“where Telstra provides interim fibre services…these are subject to the same disconnection obligations as Telstra’s copper-based Customer Access Network services and broadband services on its HFC cable Network.”
I take that to mean they would transfer as any other network, though potentially could end up with multiple cables if NBN chose to duplicate, which seems unlikely.
Thank you.
How can Velocity estates that were fully establish prior to the NBN even being announced fall under Greenfields?
I also wouldn’t regard these existing Velocity fibre areas as ‘interim fibre services’. Doesn’t that refer to services provisioned in the interim between NBN being announced and NBN arriving in an area?
However, your interpretation of the Fixed line network preference clause indicates Velocity users will be waiting just as long as copper users to be migrated to NBN.
I was expecting a specific clause dealing with the transfer of Velocity fibre to NBN Co ownership.
I was considering selling up and moving to a Velocity estate to get NBN asap if that was the case, instead of potentially having to wait till 2014 (worst case scenario if you happen to live in an area that won’t be NBN’d till the end).
Perhaps this is part of Telstra’ contingency planning if NBN is cancelled by LNP in future?
In my specific regional area, it is not a small market – just about every new development in the past decade has been a Velocity estate, I would guess at close to 20% of the local population would be in Velocity estates. I would even hazard a guess that the most number of fibre connected homes in Aus today are via Velocity, even if that is a small number in comparison to HFC.
However, your interpretation of the Fixed line network preference clause indicates Velocity users will be waiting just as long as copper users to be migrated to NBN.
Does that really matter considering their interim service is FTTH? It’s not like the hundred of thousands of people on subpar ADSL2+ because they happen to be about 3km from the exchange.
I am currently on a congested ADSL1 RIM (I envy people on ADSL2+), and I don’t want to remain on my ADSL1 RIM hell until potentially 2014.
I am considering selling my house and moving, for better internet. If I do so, I want to ensure I move to the best internet available, which is undoubtedly NBN fibre.
Given that there is large amounts of land available in my region in Telstra Velocity estates, it matters whether they will remain as only Telstra Bigpond services until the NBN happens to come to the area, or whether NBNCo will take over Velocity fibre ahead of the NBN arriving in the area, and offer the significantly higher upload speeds and value available via NBN RSP’s.
Unfortunately the fact of the matter is installing fibre takes a long time. I really do hate to say it but sometimes you just got to deal with it. You have to remember that if it wasn’t for the political games over this issue the OPEL project would already be completed long ago.
You’re not the only one dealt a bad hand here, and as much as I’m sure NBN Co would like to deal with your situation first, there is a lot of ground to cover.
Please don’t bring up OPEL, I bought my block of land and built where I am based on the OPEL plans to upgrade my exchange to ADSL2+ :-(
I support the NBN, I wish I could have it today, and I am prepared to sell my house to get it as soon as possible (not sure about the wife though!).
I just feel that the NBN Telstra agreement has missed a trick in not transferring ownership of Velocity to NBNCo asap.
Oops, not 2014 but 2024.
That is the worst case scenario for some people who happen to be the last connected in Aus to the NBN, given the projected decade long rollout from 2014 according to the Telstra docs.
“We hope it all makes sense now.”
Oh very droll.
The box missing from the infographic is the one saying [approval by Telstra shareholders October 2011?] directly underneath the first one.
Well if TLS shareholders are silly enough to vote it down, thus giving a “vote of no confidence in their Management/Board” (who would surely have to go as a consequence)…then cest la vie…
Then we will all be able to pick up TLS shares for a $1 each and become fanbois who frequent blogs, bagging the NBN and/or accusing others of being disparaging opponents…LOL!
This is historic and fantastic news.
And @BigMugz, it is even great news for you stuck behind a RIM!
After finalising the agreement wording last Friday, Telstra announced yesterday that it is trialling “Top Hat” upgrades to its RIMs to improve ADSL speeds for RIM-sufferers like you. This is because you will probably still be on copper for a few more years as the main fibre rollout starts chiefly in areas with no broadband at all.
This also makes commercial sense for Telstra because ROI on a new DSLAM is only 2-3 years, whereas ROI on this upgrade will be very short. Customers with faster connections can start buying T-Boxes and Foxtel, for instance, which is impossible on their slow connections. And Telstra resellers like iiNet and Internode can sell them FetchTV, etc., again generating revenue to Telstra for the increased aggregate bandwidth consumed.
If Optus HFC customers are expecting migration to NBN fibre in 2014-18, I suggest that capital city ADSL customers can probably expect about the same timeframe for fibre.
Hehe nice info graphic saw it on Twitter, but what would be good is a NBN info graphic of all the costs =)
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