[AusNOG] NBN’s $800 million Optus network might need to be rebuilt

[Jonathan Thorpe]

I think nbn™ had every intention of using the Optus HFC network for delivery of services, but given all the chatter about “node splitting” and the like, surely there must have been some understanding that there could have been issues with congestion within the existing network that needed to be addressed?

With all the overlap with the Telstra HFC network, it may not be as bad if that network is in a much better state.

From: AusNOG [mailto:ausnog-bounces at lists.ausnog.net] On Behalf Of Robert Hudson
Sent: 26 November 2015 07:53
To: Nick Stallman <nick at agentpoint.com>
Cc: ausnog at lists.ausnog.net
Subject: Re: [AusNOG] NBN’s $800 million Optus network might need to be rebuilt


Given the massive overlap with the Telstra HFC footprint, and the performance of the Optus HFC network, you couldn't call it competition by any measure of the word.
On 26 Nov 2015 7:40 am, "Nick Stallman" <nick at agentpoint.com<mailto:nick at agentpoint.com>> wrote:
Did they buy the network or did they buy the competition?

If it's the latter then the state of the network is entirely irrelevant.
On 26/11/15 06:14, Robert Hudson wrote:

Those were my thoughts exactly Skeeve. The Optus HFC network has been in a disgraceful state for years, and anyone who's had any involvement with it knew that.

Great to see that NBN did the appropriate levels of due dilligence before handing over so much money...
On 26 Nov 2015 12:38 am, "Skeeve Stevens" <skeeve+ausnog at theispguy.com<mailto:skeeve%2Bausnog at theispguy.com>> wrote:
They could have just asked us... we would have told them how bad it was.

...Skeeve

From: http://www.news.com.au/technology/online/nbn/nbns-800-million-optus-network-might-need-to-be-rebuilt/news-story/058b1a409439b2d0b797bda37aec4ed7

===
MALCOLM Turnbull and the NBN have spent $800 million on a network that almost completely needs to be rebuilt.

As part of the Coalition government’s multi-technology National Broadband Network, the government bought Optus’s ageing hybrid fibre-coaxial (HFC) cable network, which was originally rolled out in the 1990s for pay TV, for $800 million.

But leaked documents obtained by Fairfax Mediareveal the government is planning to replace that $800 million network at a cost of an extra $375 million.

The documents claim that the Optus HFC network is “not fit for purpose” and nearing the end of its life, while other parts of it are simply already oversubscribed and wouldn’t be able to deliver on the speeds promised by Mr Turnbull and his government.

These new plans would see the Optus network rebuilt with either Telstra’s HFC or fibre-to-the-node technology, which was originally planned for 38 per cent of the network. On top of the huge cost blowout, which is already expected to be $15 billion over budget, the NBN will be missing the rollout targets of 633,000 premises in 2017 and 2018, which will now have to wait until 2019 at the earliest to be connected.

An initial agreement was made between the NBN and Optus in 2012, where it was approved by the Australian Competition and Consumer Commission under the grounds that the government could gradually decommission Optus’s HFC and replace it with fibre-to-the-premises broadband connections.

The existing network needed upgrades and it was deemed commercially unviable for Optus to do that work and maintain it.

Despite this, the deal was revised in 2015 the government would keep Optus’s HFC network in use and make upgrades where needed for the same $800 million price tag.

Opposition communications spokesman Jason Clare slammed the findings of the document, saying it showed “more evidence of the absolute mess that Malcolm Turnbull has created with his second-rate NBN”.

“It reveals that the Optus HFC network, a key component of Malcolm Turnbull’s second-rate NBN, is in far worse condition than Australians were led to believe and NBN Co is considering overbuilding the network — costing hundreds of millions and meaning hundreds of thousands of Australians will have to wait longer to get the NBN,” Mr Clare said.

Optus said that it always acknowledged the HFC network needed major investment to manage subscriber growth and capacity demand.

A statement from NBN Co said the corporate plan had accounted for the ebbs and flows of the project.

“NBN has met or exceeded all targets over the past 18 months and we remain confident in our long range plan and the various strategies we have in place to manage the risk,” the statement said.

“Nearly 1.5 million homes and businesses can now order an NBN service and nearly 700,000 are connected.

“In order to manage risk NBN regularly prepares for multiple scenarios in the network deployment — the document concerned is part of that ongoing approach of risk mitigation.”

“Our corporate plan has accounted for the ebbs and flows expected in a project of this scale.

“NBN has met or exceeded all targets over the past 18 months and we remain confident in our long range plan and the various strategies we have in place to manage the risk.

“Nearly 1.5 million homes and businesses can now order an nbn service and nearly 700,000 are connected. In order to manage risk, NBN regularly prepares for multiple scenarios in the network deployment - the document concerned is part of that ongoing approach of risk mitigation.”


===


...Skeeve

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