Feeds

NBN Co still on budget, CEO claims

Won't cost $AU90 billion

Top three mobile application threats

While avoiding direct political comment on the federal opposition's fibre-to-the-node plans, NBN Co CEO Mike Quigley has told the parliamentary Joint Committee on the National Broadband Network he believes the project will still be able to meet its $37.4 billion capital budget.

Quigley told the committee there's “no reason to change the forecast”, adding that the capex budget includes several billion of contingency funds which he says NBN Co has not yet needed to touch.

With FSAM build data now available – in spite of the rollout delays announced earlier this year – Quigley said NBN Co now finds that the per-premise cost of connection for the 138 FSAMs completed or under construction is falling within the range of $AU1,100 to $AU1,400 per premises (at the connection level) and a total per-premises cost of $AU2,400.

“We are not going to stop here,” Quigley told the committee. “We are going to continue to work to drive these costs lower.”

The latest connection rate to the NBN continues to show a skew towards higher-speed services, with Quigley announcing that 31 percent of customers are taking the 100 Mbps service compared to 39 percent on the 12 Mbps service, and most of the remainder on 25 Mbps services.

Quigley noted that government policy could, if altered, put the company under an obligation to use “basement fibre” on suitable multi-dwelling units. However, both he and NBN Co CTO Gary McLaren warned against inflated expectations for such a policy, because many Australian MDUs are of town-house rather than high-rise style, and lack a central telecommunications hub (MDF or main distribution frame).

Under questioning, McLaren stated that VDSL-based MDU delivery would not allow customers to achieve the gigabit speeds which the company announced today will be added to its available wholesale plans (the plan announcement is here).

Without identifying the coalition document, Quigley was also critical of ARPU forecasts that assume a tripling of NBN Co ARPU, noting that the starting ARPU of $22 per user per month is an artificially-low figure.

That figure, Quigley said, is “an artefact of a very small base of subscribers in the early years, so you end up with an ARPU that is misleading. The lowest possible price – for the AVC – is $AU24. You can't really start with an ARPU of $AU22.”

The real customer ARPU now, he said, is $AU38.

Another key aspect of the coalition's “$AU90 billion NBN” assertion, that delayed completion would dramatically increase the funding requirement, was also cold-watered. COO Robin Payne told the committee that a two-year delay should reduce the NBN's peak funding requirement, “because we would be spending capex after we've gone cashflow-positive.” ®

SANS - Survey on application security programs

More from The Register

next story
Did a date calculation bug just cost hard-up Co-op Bank £110m?
And just when Brit banking org needs £400m to stay afloat
One year on: diplomatic fail as Chinese APT gangs get back to work
Mandiant says past 12 months shows Beijing won't call off its hackers
Whoever you vote for, Google gets in
Report uncovers giant octopus squid of lobbying influence
Lavabit loses contempt of court appeal over protecting Snowden, customers
Judges rule complaints about government power are too little, too late
MtGox chief Karpelès refuses to come to US for g-men's grilling
Bitcoin baron says he needs another lawyer for FinCEN chat
Don't let no-hire pact suit witnesses call Steve Jobs a bullyboy, plead Apple and Google
'Irrelevant' character evidence should be excluded – lawyers
EFF: Feds plan to put 52 MILLION FACES into recognition database
System would identify faces as part of biometrics collection
Putin tells Snowden: Russia conducts no US-style mass surveillance
Gov't is too broke for that, Russian prez says
Ex-Tony Blair adviser is new top boss at UK spy-hive GCHQ
Robert Hannigan to replace Sir Iain Lobban in the autumn
Alphadex fires back at British Gas with overcharging allegation
Brit colo outfit says it paid for 347KVA, has been charged for 1940KVA
prev story

Whitepapers

Top three mobile application threats
Learn about three of the top mobile application security threats facing businesses today and recommendations on how to mitigate the risk.
Combat fraud and increase customer satisfaction
Based on their experience using HP ArcSight Enterprise Security Manager for IT security operations, Finansbank moved to HP ArcSight ESM for fraud management.
The benefits of software based PBX
Why you should break free from your proprietary PBX and how to leverage your existing server hardware.
Five 3D headsets to be won!
We were so impressed by the Durovis Dive headset we’ve asked the company to give some away to Reg readers.
SANS - Survey on application security programs
In this whitepaper learn about the state of application security programs and practices of 488 surveyed respondents, and discover how mature and effective these programs are.