Feeds

NBN could cut $AU600m+ from telco maintenance bills

BIS Shrapnel tags the cost of caring for copper

The Essential Guide to IT Transformation

Property researcher BIS Shrapnel has shone a torch into one of the dark corners of the NBN debate: the cost of maintaining Australia’s copper network.

The company’s nearly-$AU20,000 report into infrastructure maintenance in Australia, Maintenance in Australia, 2012-2027, tags the annual cost of telecommunications network maintenance in the country at $AU2 billion, half of which weighs down Telstra's nottom line.

“The NBN will be a game-changer for maintenance in the telecoms sector,” says the company's Senior Manager Adrian Hart. “While it will allow for much higher levels of voice and data traffic, the technological superiority of optic fibre over Australia’s ageing fixed line copper network is estimated to reduce industry maintenance costs by between $600 million to $700 million per annum once fully deployed."

Hart adds that those savings will "be put at risk if the NBN project were delayed or cancelled by future Federal governments.”

Since Telstra doesn’t provide any data specifically identifying its spend on maintaining the copper network, industry newsletter Communications Day states that the estimate was the result of a survey of contractors in the sector. Hart told the publication “we’ve tried piecing together how much maintenance is done across copper, across wireless networks, HFC cable – all sorts of stuff”.

Hart has tagged fibre’s resistance to water as a key factor, noting that maintenance demands have risen since “since the ending of the drought”. He also noted that the maintenance costs of copper are likely to continue rising over time. ®

Build a business case: developing custom apps

More from The Register

next story
Scotland's BIG question: Will independence cost me my broadband?
They can take our lives, but they'll never take our SPECTRUM
Bring back error correction, say Danish 'net boffins
We don't need no steenkin' TCP/IP retransmission and the congestion it causes
Auntie remains MYSTIFIED by that weekend BBC iPlayer and website outage
Still doing 'forensics' on the caching layer – Beeb digi wonk
NBN Co adds apartments to FTTP rollout
Commercial trial locations to go live in September
Samsung Z Tizen OS mobe is post-phoned – this time for good?
Russian launch for Sammy's non-droid knocked back
Telstra to KILL 2G network by end of 2016
GSM now stands for Grave-Seeking-Mobile network
Seeking LTE expert to insert small cells into BT customers' places
Is this the first step to a FON-a-like 4G network?
What FTC lawsuit? T-Mobile US touts 10GB, $100 family-of-4 plan
Folks 'could use that money for more important things' says CEO Legere
prev story

Whitepapers

Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
The Essential Guide to IT Transformation
ServiceNow discusses three IT transformations that can help CIO's automate IT services to transform IT and the enterprise.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
How modern custom applications can spur business growth
Learn how to create, deploy and manage custom applications without consuming or expanding the need for scarce, expensive IT resources.
Build a business case: developing custom apps
Learn how to maximize the value of custom applications by accelerating and simplifying their development.