0ASX ElodgeLetter presentation · PDF fileSlide 10 Three Internal Circuit Fans Three External...

Telstra Corporation Limited ACN 051 775 556

ABN 33 051 775 556

4 December 2008 The Manager Company Announcements Office Australian Stock Exchange 4th Floor, 20 Bridge Street SYDNEY NSW 2000

Office of the Company Secretary Level 41 242 Exhibition Street MELBOURNE VIC 3000 AUSTRALIA General Enquiries 08 8308 1721 Facsimile 03 9632 3215

ELECTRONIC LODGEMENT Dear Sir or Madam Telstra NBN Technology Briefing In accordance with the listing rules, I attach a copy of the presentation by Greg Winn, Telstra’s Chief Operations Officer, for release to the market. Yours sincerely

Carmel Mulhern Company Secretary

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NBN Demonstration Briefing

December 4, 2008

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Our Proposal

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Telstra’s NBN Proposal:A World-Class Open Access NBN

• Exceeds government’s requirement of a minimum 12Mbps downstream speed

• Multiple service offerings & Open Access with full equivalence for wholesale customers

• Carrier-grade

• Future upgrade path

Services & Applications

Access Node

NBN

Service Provider Edge

Ethernet

AggregationIP/MPLS

Core

Service Edge

Consumer

Business

Enterprise

Next Generation Network

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Slide 4

Delivering the NBN requires end-to-endarchitecture and an integrated business

Operational Support Systems (OSS)

& Business Support Systems (BSS)

National High Speed

IP Backbone

Fibre To

The Node

Node

to Premises

CPE

BUILD

OPERATE

MAINTAIN

End-to-end Service Environment

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Telstra’s OSS & BSS:World class and working today

• Telstra’s IT Transformation commenced in 2005

• For NBN we will leverage the existing Telstra Wholesale capability.

• The IT Transformation involves replacing the hundreds of existing systems with a small number of large specialist packages.

• The aim is to ensure a “1 Click”experience for staff and customers.

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Telstra invests in World-Class National Networks

Speed

Future Upgrade

Coverage

Scalability

Security

Performance

Reliability

ADSL/ ADSL2+

Regional transmission

Integrated

Telstra has ~6 times the coverage areas

Telstra has almost twice as many base stations

Telstra has ~8 times as many DSLAM equipped exchanges

Telstra has ~67 times regional transmission points of presences

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Telstra’s Proposed PoIs:National coverage and equivalence of access

Note: PoI = Points of Interconnect

VDSL2

Access Node

Ethernet Aggregation Point

(EAP)

Direct fiberor SDH

EASPCS

Access Seeker 2- Large

Access Seeker 1- Small

Access Seeker 1 PoI(GE/10GE)

Access Seeker 2 PoI (10GE at each EAS)

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Telstra’s FTTN Proposal: Building the FTTN network requires skills and experience…

Telstra has skilled staff…

• Telstra has in excess of 5,000 field and construction technicians

• Telstra has under its control in excess of 400 fibre jointers and splicers.

• More than 700 experienced Access Network Planners and designers.

Exchange OFTU Fusion Splicer External Enclosure

FTTN Cabinet

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Telstra’s FTTN Proposal:which Telstra can demonstrate today…

requires more than optics and electronics

An Existing Gen 5 FTTN Cabinet

Note: Site in Queensland

Install the Conduit between the

Cabinet and manhole

Pouring the Concrete Footing

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Three Internal Circuit Fans

Three External Circuit Fans

7302 ISAM XD with cover off

CCF on end

External Air Exhaust

Batteries

Dual Rectifiers & Controller

Transformer

External Air Inlet

Trouble LampGPOlimited to 2 Amps

Emergency Power Connection

Emergency Power Cord Access

Telstra’s FTTN Proposal:Our node design is informed by years of real-world experience of the Australian environment

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Node to the Premises:Some believe that the copper access component of an NBN is easy

Customer

O1-100

O101-200

O201-300

O301-400

C2 1-100

Telephone

Exchange

Distribution

Cables

Main

Copper

Cable

100 Pr

Pillar

Tail

PillarFrom this…

…to this

EAP / PoI Site

Main

Fibre

Cable

Node

Customer Phone

O1-100

O101-200

O201-300

O301-400

Distribution

Cables

100 Pr

Pillar

Tail

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Customer

Side

Pillar

Side

Cabinet

Side

Customer

Side

Pillar

Side

Cabinet

Side

Node to the Premises:It isn’t easy. It takes a dedicated focus on the end-to-end service to get it right.

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TelstraNode Pillar Pit

Fibre

Copper pair

Cable sheath

Competitor Node

Telstra Node

• Sub-loop unbundling (SLU) means allowing another party, to gain access to

and take control of Telstra’s copper at almost any point of their choosing.

Exchange / other Pointof Inter-connection

Node to the Premise:Some argue that sub-loop unbundling may be theoretically feasible

EAP / PoI

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Destroys end-to-end fault management capability

Issue

Destroys future upgrade path

Introduces operational complexity & cost

Potentially degraded line performance

Makes complex copper plant remediation more complex

Node to the Premise:In practice it would be a disaster for customers

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Increase speed to 50 MbpsIncrease speed to 50 Mbps��Service Provider

No unbundling

DSLAM

Collective Interference Management

Service Provider 1

Service Provider 2

Sub-loop Unbundling

DSLAM

�� Not upgrade optionNot upgrade option

Node to the Premise:Case in point – sub-loop unbundling would remove option to further increase broadband speeds

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Customer Premise & Equipment:As an end-to-end service provider we understand the full range of noise which may impact the customer

1. Copper network 2. Network Interference

3. In-home Environment 4. Neighbourhood

Access Node

Neighbour

1

2

4

Joint

Bridged Tap

Potential High-Speed Access Customer

VDSL23

Bridged Tap

3

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0.00

2.00

4.00

6.00

8.00

10.00

12.00

14.00

16.00

20:00 20:30 21:00 21:30 22:00 22:30 23:00 23:30 0:00

RESYNC

1st Noise increase (neighbor modem)

2nd Noise increase (strong radio signal)

Service interruptionsreinitialization result in minutes of downtime

Service degradation: lower bandwidth due to higher noiseB

andwidth (Mbps)

time

A closer look at a DSL line during prime time (8pm-midnight):

RESYNC

noise

Video affected by packet loss

Service degradationExcessive Packet Loss due to transmission

errors

Service interruptionsSpontaneous DSL line reinitialization

Stable DSL line Video affected by line reinitialization

Stable DSL line

Customer Premise & Equipment:Managing noise is particularly important when offering video services

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High-SpeedCustomers

Neighbour

Telstra’s FTTN Proposal:Our end-to-end service proposal takes into account real-world conditions, with a focus on customer outcomes

Mitigation Approaches

1. Copper network

• Extensive remediation

2. Network Interference

• Potential application of DSM

3. In-home Environment

• Installation of NTD and Central Filter for high-speed services

4. Neighbourhood

• Case-by-case fault resolution

Access NodeNew Cat 5/6

cabling

Existing house wiring

Bridged Tap

Noi

se F

ilter

NTD on the outside wall of the house

NTD: Network Termination Device

VDSL2

1

2

4

Central Filter inside

NTD 3

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100 Years of ExperienceCurrent Case Study: Broadbanding the Top End

• Recently we have installing ADSL in Arnhem land to service remote communities.

• Over 850 km was ploughed and spliced in a matter of months.

• All permits were sourced and all the strict requirements of the National Land Council were met.

• We have first-hand experience with Australian

conditions and the cost involved in providing

telecommunications to regional Australia

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Operating the NBN: We already have a world-leading GOC in place to manage Telstra’s proposed NBN

• Officially opened in 1999, Telstra’s leading edge Global Operations Centre manages the operation of Telstra’s existing fixed and mobile networks.

• Over 2500 people with the capability to monitor and manage the network, end to end, 7 days a week, 365 days of the year, 24x7

• End-to-end monitoring services include:− Assurance of customer services

− Incident management

− Activation of customer services

− Security management

− Change management control

− Major incident management

• Telstra proposes extending the GOC to manage the tens of thousands of nodes proposed by Telstra’s NBN

− Well within the GOC’s scope and expertise, especially given that it currently managed many hundreds of thousands of network elements.F

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Maintaining the NBN:Telstra has the expertise and resources in place to maintain the NBN end-to-end

• Telstra supports its networks with in excess of 5,000 highly skilled and fully equipped field technicians connecting and maintaining Customers on our Network

• All this is coordinated through a World Class dispatch System, proven large scale Construction Project Management.

• Our network surveillance capability has been recognised World Leading and is ready to take on the role of managing a FTTN network

• We can optimise our workforce through the application of the latest GPS devices

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Telstra’s NBN Proposal:Telstra’s considered additional technologies to expand coverage – but judged them outside of scope

• The cost of deploying FTTN increases rapidly as the service density decreases

• Wireless access is attractive from cost perspective,

− can meet the main RFP requirements of 12 Mbps downstream peak access speed

− But does not provide full equivalent capacity, performance & service capabilities compared to FTTN

• Telstra considered two wireless access technology options

− Next-Generation Wireless

− Next-Generation Satellite

• Telstra chose not to include these in its RFP response as wireless broadband is already available commercially to 99% of the population and satellite to 100% of the population

• However we are comfortable to discuss approaches to integrating wireless and satellite alternatives into the proposed NBN with the Government.For

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Conclusion

• Telstra truly believes that our

proposal represents the best

outcome for the Nation and the

Australian people.

• As we noted in our NBN

disclosure last week, Telstra is

ready to work through the

issues with the Government to

enable Telstra to build the NBN

in a timely way, for the benefit

of all Australians.For

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