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

[Skeeve Stevens]

But... one of the things I've always said about HFC... the cost is in
getting from the Pole to the Premises.  Everything else is easily
upgradable.  So, in hindsight, as NBN I still would have bought it, just
maybe paid a lot less.


...Skeeve


--

Skeeve Stevens - The ISP Guy - Internet Provider SME

Email: skeeve at theispguy.com ; Cell: +61(0)414 753 383
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On Thu, Nov 26, 2015 at 6:14 AM, Robert Hudson <hudrob at gmail.com> 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>
> 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
>>
>>
>> --
>>
>> Skeeve Stevens - The ISP Guy - Internet Provider SME
>>
>> Email: skeeve at theispguy.com ; Cell: +61(0)414 753 383
>> Skype: skeeve; Blog: TheISPGuy.com <http://theispguy.com/> ; Facebook:
>> TheISPGuy <https://www.facebook.com/theispguy>
>>
>> Linkedin: /in/skeeve <http://www.linkedin.com/in/skeeve> ; Expert360:
>> Profile <https://expert360.com/profile/d54a9>
>>
>>
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