nbn has released its Corporate Plan 2018-2021, revealing new operational targets and expectations for the next four years.
nbn end-of-rollout targets include:
- nbn has reported it remains on track with its rollout target to complete the network build in 2020 within $49 billion peak funding
- Geospatial mapping accuracy predicts 300,000 fewer premises in existence in Australia, resulting in an expected final footprint o$ 11.6 million premises in FY20
- The expected number of homes and businesses with an active nbn service in 2020 remains at 8.1 million
- ANnexpected revenue of $4.9 billion with the Internal Rate of Return (IRR) remaining between 3.2 per cent and 3.7 per cent
- nbn has recommitted to retaining high levels of customer experience and top quartile of Best Employer Indices ANZ
- nbn’s first year operations expectations post build include a positive cash flow in FY2021 and $5.4 billion in revenue from 8.6 million active services and ARPU of $52 per month.
nbn has applied only minor adjustments to its plan in line with greater data accuracy and planned network upgrades to Fibre-to-the-Curb (FTTC) as previously announced.
nbn added 2.8 million premises to its footprint in FY2017, with its biggest build year ahead of $3 million additional premises expected to be made ready for service in FY2018.
In FY2019, a further $2.5 million premises are expected to be made ready for service, with the final 400,000 premises scheduled for completion in FY2020.
Greater geospatial mapping accuracy has delivered an expected final footprint in 2020 of $11.6 million premises, 300,000 lower than the previous estimate of $11.9 million. When going into detailed design and construction, nbn has been able to plot existing premises in Australia with greater accuracy and adjust for reduced new development expectations.
This breaks down as 200,000 fewer premises from the previously planned FY2018 footprint, with the remaining 100,000 premises primarily from FY19-20.
nbn CEO, Bill Morrow, said, “Our strategy remains unchanged to have the network built and eight million premises connected to an nbn service by 2020, within peak funding of $49 billion and IRR of 3.2 per cent to 3.7 per cent.
“This year ahead will be our biggest year yet, adding an astonishing three million premises to the footprint. We have made slight changes to the FY2018 incremental footprint, with 200,000 fewer premises expected to exist, and around 200,000 premises shifted into FY2019 to receive our network upgrade to FTTC technology.
“FTTC is currently expected to support one million premises, and we continue to look for ways to make it cost effective to hopefully expand that footprint further. As planned, we will launch FTTC in 2018.
“On top of the reduced number of expected premises in FY2020 plans, we have also been able to bring forward the rollout for 200,000 premises, making them ready for service earlier in FY2019. This now means we expect to be 97 per cent completed by end of June 2019.”
The technology-based cost per premises (CPP) metrics remain largely unchanged with the planned inclusion of FTTC estimated at $2,900.
“We remain confident we can deliver on our promise to have the country connected in 2020 within $49 billion,” Mr Morrow said.
After another year of above-target performance in FY2017, additional experience and information have enabled nbn to reduce its expected peak funding range to $47-$51 billion.
“Since our 2016 Corporate Plan we have reduced our peak funding expectations from a $10 billion range, to a $4 billion range today,” Mr Morrow said.