How the NBN is changing the NBN market
New analysis by NBN Co has revealed that there is a clear, significant market opportunity for the NBN to be deployed in Australia.
Key points:The NBN Co’s analysis shows that the Australian market is growing fast and growing quicklyThere are huge opportunities for the Government to build the network more quickly and cost-effectivelyThere are clear opportunities for NBN Co to scale up its footprint in AustraliaThe analysis has identified that Australia is now a key growth market for the Federal Government, with the Government now forecast to deliver 1.5Gbps fibre to the home by 2020.
NBN Co said that the NBN’s current footprint was not sufficient to meet the growth demand.
The new analysis by the company showed that the market is being saturated by incumbent providers and new entrants, with NBN Co seeing a strong need for a larger footprint in the market.
“There are a number of opportunities for us to build a new infrastructure in Australia,” NBN Co Chief Technology Officer Kevin Donohue said.
Mr Donohu said that while the market was already growing rapidly, NBN Co had a plan for how to scale it up.
He said the company was currently exploring how to build out a new footprint across the country and the country would grow and expand to meet this demand.
“We’re looking at expanding our footprint across Australia,” he said.
“This is something that is a long-term opportunity for us, we’re going to grow it as it grows, we’ll do that through the acquisition of smaller providers and we’ll go and acquire smaller operators, and we’re already doing that.”
We’ll build a larger network, build a network that can deliver the speed, the capacity, the price, we will scale it and we will do that.
“We are looking at that.”‘
There is a lot of opportunity’Mr Donahue said that there was a lot more to the NBN than just a new fibre network.
“[It is] a global network that supports a global business model,” he explained.
“If you look at the growth potential, the opportunity for NBN in Australia is so large, and so wide-ranging, it is the opportunity that we’re very excited about.”
NHS CEO Joe Picker said that NBN Co was committed to expanding the network and that it was looking forward to the future.
Dr Donohues comments were echoed by Health Minister David Gillespie.
When asked about the future of the NBN, Mr Gillespie said that he was looking to the next six months.
Asked if the Government was planning to roll out fibre to homes, Mr Picker responded: “Absolutely, that’s the intention.”
Mr Gillespie said the Government had made its position clear and there would be no change in the rollout.
But the Government has yet to make a decision about whether or not to move ahead with the rollout of fibre to every home in the country.
‘NBN has got a lot to offer’The NBNCo Chief Technology officer Kevin Donahu said the NBN Co wanted to work with the Federal and State governments to create the best possible NBN for Australians.
In the short term, Mr Donohuc said that they were focused on expanding their footprint.
However, in the longer term, NBNCo had a lot in mind for the rollout and would be looking to expand their footprint in other areas.
They would also look to increase the speed of the network, Mr Grabbe said.
Mr DonOHu said NBN Co would work closely with the Australian Competition and Consumer Commission (ACCC) to ensure consumers are not disadvantaged.
This would include providing faster speeds for NBN customers, as well as increasing capacity in some areas.
Mr Picker also said that ISPs would be allowed to offer the NBN for free, provided they didn’t charge for it.
“It is the government’s position that we don’t need to charge for the Internet,” Mr Pickers response said.
“What we are doing is building an infrastructure that will deliver the speeds we need and provide the value that the Government is looking for, which is that consumers can get the best service for the most money.”
‘There’s a lot at stake’The Minister for Communications Stephen Conroy said that all of the issues raised by the NBNCo’s report should be taken into account.
It was also clear that the Coalition would continue to support the NBN.
Senator Conroy told reporters that the Federal government wanted to build an efficient, secure and affordable NBN, and that this would not be possible without the support of the Government.
As the NBN gets further into its rollout phase, the Government must make sure that it does not harm the NBN company, he said, before proceeding with the next phase of its plans.