“Simply incorrect”: Morrow refutes most NBN leaks with evidence

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news The CEO of the NBN company has delivered a strong rebuttal of negative conclusions which commentators had drawn from a recent spate of leaks, providing a Senate Committee hearing this morning with evidence that the NBN was ahead of its targets on all measures and that its technology was performing well.

Over the past several months a number of highly sensitive documents have leaked from within the NBN company. The documents have appeared to cast doubt upon various aspects of the Coalition’s Multi-Technology Mix approach to the NBN.

For example, one set of documents appeared to show that the Fibre to the Node component of the MTM was significantly delayed. Other documents appeared to show that the cost of FTTN had exploded, while still further documents showed that the performance standards of the FTTN network may be questionable.

The leaks have come at a time as a significant volume of complaints about the FTTN rollout have been received by early users of the technology, some of whom are receiving worse speeds than their prior ADSL connections.

However, NBN chief executive Bill Morrow told the NBN Senate Select Committee in Canberra this morning that much of the recent reporting on the leaks was “either taken out of context or simply incorrect”.

You can download Morrow’s full statement here in PDF format.

Morrow stated that the NBN company now had 1.91 million premises Ready for Service (available to order a NBN connection) around Australia. This figure meant that the NBN company had added 145,000 premises over the past four weeks (an average of 35,000 per week).

Morrow said this rapid acceleration of the NBN rollout was due to incorporating the FTTN technology into the NBN company’s rollout. The NBN company’s current targets state that it needs to reach less than 300,000 premises over the next 13 weeks to reach its mid-2016 target.

“With no further acceleration, that would require only 23,000 per week. However, as I said, this last month has averaged over 35,000 a week,” said Morrow. “So we can certainly make the claim we are on track.”

Morrow said leaks which had appeared to show the FTTN rollout was delayed were wrong. The executive acknowledged there had been “sub-optimal processes” during some of the early FTTN rollout, but that bottleneck has since been resolved, and in any case the delays would not have held up the whole FTTN rollout as they were only in one part of the FTTN build zone, and represented only one step out of 14 needed to get a FTTN deployed to a premise.

“The metrics under each [step] have thresholds higher than what is needed to meet the corporate plan. We do this to allow for any unexpected challenges, as is prudent in a newly established process. This contingency management is something that any large project management organisation will do and is exactly what was happening here,” said Morrow.

Morrow also responded to allegations that the cost of the FTTN rollout had blown out.

“This is not true,” he said.

“There will always be a balancing across the entire plan, where some parts are higher and some parts are lower than what was forecast but in the case of FTTN, our actuals to date and forecasted Cost Per Premises (CPP) remains at $2,300.”

In terms of the ongoing complaints about FTTN speeds, Morrow said the NBN company had gone through every single complaint received by MPs on this issue.

“… the numbers are actually very small given the scale of the rollout,” said Morrow.

“We found that of the issues reported to their offices, as well as those reported through the RSPs and us directly – none were directly related to the FTTN technology itself or the copper circuit. The majority related to installation issues, the type of modem end users were sent, the timing of existing services being switched over, and the understandable frustration of missed appointments.”

“There were also a number of speed complaints, particularly speeds dropping during peak times. This is not related to the technology, it is exactly the same on FTTP, and is mostly a function of the manner in which a few of the RSPs have dimensioned their capacity.”

Morrow said fault rates on Telstra’s copper network were higher than for other technologies such as FTTP, but that the copper fault rate was “in line with what was expected”.

“1.4 per cent of the circuits in use have required repairs,” he said. “This is roughly in line with what other copper network operators are reporting.”

“I would like to reiterate again how the company is accelerating the roll out; it is on track, on budget, and performing as expected. Our end-users, RSPs, Delivery Partners, and employees are reporting higher engagement and satisfaction levels than ever before.”

“The facts are what they are and the thousands of employees and partners have delivered within the parameters defined by the Government and consistent with the objectives defined in the corporate plan. Regardless of one’s preference of technology, the current mix is the fastest and least cost approach to bringing broadband to all Australians.”

Image credit: Parliamentary Broadcasting

70 COMMENTS

  1. If that’s the case, why has the NBN company and you, yourself, Mr Morrow, refused to make NBN’s data at least as transparent as it was under your predecessor? We were promised greater transparency by this government, yet we have a GBE refusing to release pertinent details to the Senate in breach of Senate rules, hiding behind deceptive and inappropriate defences like Commercial in Confidence which can not be used in the way they are being deployed like a smokescreen by you and your company. What do you have to hide, Mr Morrow? If the NBN is tracking so well, why are you avoiding oversight from the Senate and the scrutiny of the Australian people?

    If FTTN is making such a significant contribution to the rollout performance, why are you not prepared to release details as to how many services are now available and how many premises are actually subscribed? What are the peak, average and minimum speeds (upload as well as download) being achieved on FTTN? How does performance relate to distance from the node in the NBN’s actual experience? How far does the NBN company consider is too far from a node, and what steps does the NBN take to connect customers further out from that? How many nodes does the NBN company now estimate will be required to service the entire FTTN network, what will be the cost per node, what is the average cost per node to deliver electricity supply, and what will be the annual cost of operation per node?

    • The same thought I had when reading the article. If the leaks don’t contravene the “high transparency” we were promised, then they are valid. Releasing (or creating) data or a new metric after a so-called leak means very little. Further would this so-called data have been released without the leaks?
      The operative word is credibility, and NBN, along with Turnbull and his promise for greater transparency, have lost credibility to the point I presume they are lying, then see if there’s any evidence to the contrary.

      Transparency, yet another failed key point of the “fully costed plan”.

  2. “1.4 per cent of the circuits in use have required repairs,” he said. “This is roughly in line with what other copper network operators are reporting.”

    The glaring question is … what is defined as a “fault”. Considering a fault can be broadly defined on copper today as being unable to get 56 kbps, then of course he can report a low 1.4 per cent requiring repairs.

    Pity about anything higher speed. But that’s not a “fault” is it.

    P.S. Being “in line” with other copper network operator reporting doesn’t necessarily mean that everything’s hunky dory Bill. If you believe Telstra (and it’s definition of a fault), then the copper network is just peachy.

    It’s the same excuse they’ve hidden behind for years. At the coalface, it’s pick up the phone, is there crackling on the line? Nope? Then you don’t have a fault. You can’t get xDSL though? Big deal, you still don’t have a fault.

    • How dare you bring common sense into this? We took that out the back and shot it decades ago! :O

  3. Considering they refuse to release the actual data, we’ll have to take him at his word and say this is good news!

    At least we won’t be wasting as much money on the copper as it initially looked like.

  4. “Show me the Data!”, “You can’t handle the Data!” two pertinent movie misquotes me thinks.

    MTM’s issue is they leave everyone (Richard included) needing to fill in between various lines because the level of data/detail coming out is terrible.

  5. “This is not related to the technology, it is exactly the same on FTTP”

    Wow, and you are going to let that one go through to the keeper without comment?

  6. Morrow refutes most NBN leaks with evidence

    I’m not seeing any evidence, hearing a lot of claims from Morrow tho!

      • My dictionary says refute means – “Overthrow by argument, evidence, or proof”. Considering there is only an argument, and no evidence or proof, that makes it an assertion really…and an assertion by someone so close to politics should always be suspect.

        • The FTTP fans are really struggling to come to terms with the points made to the Senate estimates, especially this:

          The NBN company’s current targets state that it needs to reach less than 300,000 premises over the next 13 weeks to reach its mid-2016 target.

          “With no further acceleration, that would require only 23,000 per week. However, as I said, this last month has averaged over 35,000 a week,” said Morrow. “So we can certainly make the claim we are on track.”

          What was the total Labor NBN Co FTTP connections between 2010-2013?

          51,000.

          35,000 a week at the moment, oh dear.

        • Tinman_au

          So in that case your argument that he is wrong is only a assertion as well.

          • A G A I N @ alain,

            Q. Are these refuted leaks, the same leaks you claimed the opposition should use to gauge MTM, just yesterday?

            A. Yes they are…

            Q. Is that a contradiction record even for you, the king of idiotic contradictions – less than 24 hours?

            A. No

            But not bad… ROFL

            You’re welcome.

          • I’ll leave the blind belief to you Reality ;o)

            Until there is actual evidence, I’ll stay sceptical.

    • Derek O,

      I’m not seeing any evidence, hearing a lot of claims from Morrow tho!

      I’m not seeing any evidence from you that he is wrong either.

      • Yeah cause leaked NBN internal documents don’t count right?

        Go stick your head in a pig Alain!

          • @ alain,

            Gee I see the very leaks you used to criticise Labor for not using to formulate their “solution” via, just yesterday, are now refuted leaks you also refute and use to support the Coalition today…

            But as usual, all roads lead to Rome eh?

            You’re welcome.

      • I’m not seeing any evidence from you that he is wrong either.

        Of course, to get that evidence, nbn™ would have to release it…instead, they refuse to release it.

        Your blind faith in the nbn™ is…amazing…

        • The indisputable logic of the ‘Back to 2013 FTTP Cheerleaders’.

          Morrow is wrong, why is he wrong? we don’t know why but he has to be wrong because our reason for being is underpinned by the theory we think we know more about NBN Co internals than the guy running the company appearing before the Senate estimates.

          Evidence to the contrary will met by a avalanche of abuse, the backbone underpinning most of the FTTP cheer squad argument.

          • Considering the amount of on notice question he takes shows he has no idea of the internals of the company.

          • Your ‘facts’ are using draft copies of Optus overbuild scenarios as the baseline for CPP figures instead of the official figures in CP 16 in a desperate attempt to cook the books.

            lol

          • And here’s what Bill Morrow said about MTM in September 2014..…

            “There will inevitably be changes in a decade-long process…”

            Q. for alain. 2014 + a decade =

            Don’t know? Thought not

            A. 2024

            Or of course we could do as you do to measure MTM and start from post-trials. Which would give us Morrow’s decade long process finishing in

            2025.

            Must be true Morrow said eh?

            You’re welcome.

          • Alain, I’m using newer numbers than CP16 – besides, there is SFA difference in the end!!

          • Your ‘facts’ are using draft copies of Optus overbuild scenarios as the baseline for CPP figures instead of the official figures in CP 16 in a desperate attempt to cook the books.

            Alain (aka “Reality”) shown to be DEAD WRONG once again!!

            Thanks for playing, oh look your idiotology is showing once again!!

            When added to the cost of the LFN, the NBN company’s leaked document today appears to show the total cost of a FTTdp model for the NBN, when combined with its recent ‘Skinny Fibre’ approach (proven successful in trial sites in Ballarat and Karingal in Victoria), could come down to as low as $2,700 — just $400 more than the NBN company’s oft-cited cost of $2300 for FTTN on a per-premise basis.

            https://delimiter.com.au/2016/03/16/delimiter-publishes-nbns-leaked-secret-fttdp-plan/

            So the CPP for FTTdp shown in the “Optus HFC Leak” is correct! God I love corroborating evidence!

            https://html1-f.scribdassets.com/ej3frvwjk4wclfi/images/5-b0f0fb81b7.jpg

          • Morrow is wrong, why is he wrong? we don’t know why but he has to be wrong because our reason for being is underpinned by the theory we think we know more about NBN Co internals than the guy running the company appearing before the Senate estimates.

            Must bug the shit out of you that you can’t prove he’s right either ;o)

            Why don’t you ask you Lib mates to be more transparent and release the data? Then we’d all know for sure. Being as secretive as they are, about truly basic information, just makes them look like they are hiding something. And with the LPA record so far on broken promises, obfuscation and out right lies, I wont be giving them the benefit of the doubt like you seem to be willing to do.

            And no, I’d hold Labor to the exact same thing.

  7. My issue is the implementation of the Node. Completely unnecessary expense to have to pay and then to pay ongoing to keep it operational. How much will it cost the government long term to keep these Nodes running? all 23,000 approximately. Why use FTTN when in 10 years, we will be upgrading to FTTP anyway. as far as I see it, it’s better to spend the money now and get it over and done with FTTP.

    Another point of contention is of course users are going to be happy with the speeds they are getting, wo don’t use it as an excuse as to why this is the best way. What everyone hates about FTTN is not the speeds that the end user gets, but the longevity of the technology as it is basically a short term stepping stone to FTTP.

      • “There will always be a balancing across the entire plan, where some parts are higher and some parts are lower than what was forecast but in the case of FTTN, our actuals to date and forecasted Cost Per Premises (CPP) remains at $2,300.”

        Yes, and your point is?

        • @ alain,

          BTW – are these refuted leaks, the same leaks you claimed the opposition should use to gauge MTM, just yesterday?

          Q. Do you, or will you, ever get anything right in that never ending political crusade?

          A. No

          You’re welcome

        • How is that $2,300 being calculated? It is possible they’re not even including the cost of node cabinets in their per-premises costs. They’re definitely not including operating costs in their comparisons between FTTP and FTTN. The fact is their lack of transparency means we simply don’t know how they’re calculating *anything*.

          • Well it certainly doesn’t include the cost of the FTTN to FTTH upgrade or the waste of 30k nodes and millions of metres of copper, what a waste. This government has doubled the deficit in the pass 2 plus years as well. How can anyone in their right mind ever trust a Liberal/National Party ever again. Even Tony Windsor has come out of retirement because he has had enough of this government and its waste on MTM and a 500 million dollar pleticide.

          • Well it certainly doesn’t include the cost of the FTTN to FTTH upgrade

            Well yeah because no one knows when this will take place, no one knows if a G.fast and FTTdp upgrade pushes out the need for FTTP even further, and no one knows if that FTTP cost will so low when it is required the FTTN + FTTP cost compared to rolling it out now will be a much lower CPP anyway.

          • Reality well we do know that fttp cost will rise as chorus has pointed most of the cost for FTTP is labor. that cost will continue to rise.

          • Well why didn’t New Zealand think of that, they could of saved millions, your answer Reality is to waste more money on Gfast and FTTdp, let the Coalition madness continue.

          • Well yeah because no one knows when this will take place

            Didn’t Ziggy say 5-10 years after the MtM stuffs done?

          • FttN doesn’t upgrade to FttP the tech is incompatible you have to over build and do again (including the cabinets). This isn’t just we unplug the copper at the node cabinet and replace with fibre it just doesn’t work like that.

        • Reality that $2300 doesn’t include $1 billion in maintenance costs for the copper network PER YEAR (Opex Costs), yet the FTTP figures include OPEX costs – WHY?

          • We all know why, it’s to artificially increase the comparison cost of FttP.

            In fact, they did so well at that, it’s apparently 2-4 times more expensive to do FttP in Australia than in most other countries.

          • Fibre Zealot,

            that $2300 doesn’t include $1 billion in maintenance costs for the copper network PER YEAR (Opex Costs), yet the FTTP figures include OPEX costs –

            Link?

          • Alain, this has been documented multiple times here and elsewhere, it’s even on hansard so bugger off and stop trolling!!

        • Yes, and your point is?

          Did you have a point? What you posted has nothing at all to do with what we were talking about. Stop posting random crap and maybe try addressing the actual issue?

          • You made a extensive post about the copper, what is the point you are making in regard to FTTN CPP vs FTTP CPP?

          • I was replying to John, who thought there were only 23k nodes. I let him know that Morrow has said in the SSC that there are/will be 30k+.

            So the 1800km they initially bought to connect the pillers to the node are just the start, they’ll need 10-11 million metres all up.

            I’m suprised you don’t know more about how “your” network works…

  8. Looks like he’s skipped right over the lies and damned lies, and gone straight for the statistics.

  9. To paraphrase Henry II ‘won’t someone rid me of this troublesome CEO?’ Surely we could find four ‘knights’ who’d do the job for the sake of all Australians? He’s just another Yankee liar!

    • We don’t have to import liars we have enough home grown ones here at a fraction of the price, just look at Richard and Reality, you can’t get any cheaper than those 2 cent trolls.

  10. If FTTN is making such a significant contribution to the rollout performance, why are you not prepared to release details as to how many services are now available and how many premises are actually subscribed? What are the peak, average and minimum speeds (upload as well as download) being achieved on FTTN?

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