[LINK] NBN Summary of Business Case was Re: NBN Co to build wireless network from late 2011

Richard Chirgwin rchirgwin at ozemail.com.au
Thu Nov 25 11:11:35 AEDT 2010

On 25/11/10 10:04 AM, Marghanita da Cruz wrote:
> Richard Chirgwin wrote:
>> On 25/11/10 9:35 AM, Marghanita da Cruz wrote:
>>> Bernard Robertson-Dunn wrote:
>>>> NBN Co to build wireless network from late 2011
>>>> By Ry Crozier
>>>> Nov 24, 2010 3:42 PM
>>>> iTnews
>>>> http://www.itnews.com.au/News/239650,nbn-co-to-build-wireless-network-from-late-2011.aspx 
>>> <snip>
>>>> The summary also provided a significant insight into the costing
>>>> assumptions for the NBN and how the total build cost would be impacted
>>>> if a deal with Telstra fell through.
>>> <snip>
>>> Ofcourse, the government could just legislate to regulate the
>>> bit they are buying from Telstra and not have the NBNCo
>>> run it.
>> The deal between NBN Co and Telstra is commonly misunderstood. NBN Co 
>> is not buying "the network" from Telstra; the agreement is that 
>> Telstra will migrate customers to the NBN in return for a payment; 
>> Telstra will also decommission the copper to NBN-served customer 
>> premises. There's other stuff in the deal as well - access to pits 
>> and ducts, access to backhaul fibre etc - but the customer migration 
>> is the biggest item.
>> The reason I make this distinction is that NBN Co will not buy the 
>> copper network from Telstra, and will therefore not run the copper 
>> network.
> NBNCo is buying the fibre network from Telstra. Without a breakdown of 
> the deal, I would guess this is the valuable part not the local 
> reticulation Have a look at maps on page 9 of the summary. Also, I was 
> amazed that the NBNCo wants to put up a satellite.
> Marghanita

I am on page 27 of the report, which clearly describes the deal as:

> - Progressive disconnection of copper services and decommissioning of 
> Telstra’s fixed line copper and HFC networks as the NBN Co fibre 
> network is rolled out;
> - Utilisation of existing Telstra exchange space;
> - Utilisation of a significant portion of Telstra’s existing ducts and 
> conduits; and
> - Access to dark fibre and managed services for backhaul.
a. The fourth, "Access to dark fibre and managed services for backhaul", 
is not "buying the fibre network from Telstra."
b. Backhaul is not more valuable than laying the local fibre.
c. Telstra will not be NBN Co's only supplier of backhaul services.

This needs to be accurately understood; I practically chew at the 
scenery when I hear another TV news story saying "NBN Co is buying 
Telstra's network".


More information about the Link mailing list