Project Final Edited 1

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University of

Kashmir

Dept. of Business and Financial

studies

NATIONALBROADBAND

NETWORKS

Insha khan

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\

ACKNO

WLEDGEMENTS

Before I go into a detail of the things I would like to take this

opportunity to express my gratitude to the people who have

been instrumental in the successful completion of this

project.

I would like to thank Mr. Jahangir Raina (Project

coordinator) for providing me with the opportunity to

undertake this project and providing me with the platform

and support in completing my project. I express my sincere

gratitude and heartfelt thanks to him as he helped me to

explore different areas of the project and also for giving methe useful guidelines on how to move ahead in this field.

I would like to thank all those who have helped directly or

indirectly and shared their views and experiences during my

project. I would also like to thank all the members ofi locus

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for he giving me suggestions so that I could work even

better. . The formal statement of acknowledgement will

hardly meet the ends of justice in the matter of expressing a

sense of gratitude to the Department of Business and

financial studies for giving practical dimensions to my

theoretical studies in the form of training and framing report

which is suitable and highly beneficial..

Last but not the least I express gratitude to my family for

their constant love and support throughout the duration of

this project.

INSHA KHANDept. of Business & Financial StudiesUniversity of Kashmir

Executive summary

The National Broadband Network (NBN) is a wholesale-only open-accessdata network funded by the government. In January 2003, a report on

broadband policy in Australia recommended governments and industry

stakeholders to work together to form a "national broadband network".Construction of the NBN began with a trial rollout of the FTTP network inTasmania.

This report gives a detailed study of the market trends that are followedworldwide regarding NBN and the various initiatives that have been takingshape around the world. Various governments in the world are keenly

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investigating the socio-economic payback that can be achieved through thedeployment of the National broadband network.

Further the report gives the details about the factors that are drawing thegovernments to invest in the access network and how the national broadbandnetwork helps the various policy makers in recuperating the economicgrowth and the overall GDP. The various challenges that are faced by the

NBN sector are highlighted. The project is new and growing so finding theskilled persons is one of the major challenges for the access network,furthermore the project requires a huge investment which is a challenge formany developing countries. The governments of all countries have selectedvarious vendors who will design the infrastructure for the national

broadband networks and supply the necessary equipments. Many companieshad applied for the bid to win the contracts but the major contract was won

by Alcatel Lucent to deploy the mammoth network in Australia, others beingHuawei, ZTE and Warren and Brown technologies.

The national broadband network will be a mixture of three technologiesmainly a fibre optic the NBN Co plans to connect at least 93 per cent of the

population to the NBN with FTTP technology. The remainder serviced byeither fixed wireless or satellite technologies.

Many countries have taken up various National broadband plans accordingto their own regulatory framework and have formed strategies for thedeployment of the same. The major national broadband plans are byAustralia, USA, Singapore, Malaysia, Qatar and Brazil. The other countrieslike Germany, Korea are also taking the lead in its deployment to make theircountries a technology hub and benefit the people with affordable national

broadband.

Lastly the report deals with the SWOT analysis of the National BroadbandNetwork. The network has strengths like providing residents with the accessto information and NBN is the technology which has removed the socio-

economic gap which exists across geographic regions. The NationalBroadband Network will offer unprecedented opportunities for businesses todiversify and tap into new markets. There are various threats that the NBNfaces the major threat being the competition from current high speedofferings, such as high speed cable access and ADSL2+ broadband whichare now becoming more widely available. There are also certain weaknessesthe costs and time associated with services resulting from the NBN and

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developing Internet capabilities is one of the weaknesses of NBN.

Contents

1. Market Trends

2. Factors driving growth forNational Broadband Network

3. Challenges facing the sector

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4. Countries and Vendors

5. Choice of technology

6. Country case studies

7. NBN Plans

8. SWOT of NBN sector

1. Market trends

National broadband initiatives have been taking shape around the world.Various governments in the world are keenly investigating the socio-economic payback that can be achieved through the deployment of a mainlyfibre-based telecoms infrastructure. Australia announced its national

broadband network (NBN) scheme, which aims to provide 90% ofAustralian homes and businesses with download speeds reaching 100Mbps.7.2 billion USD has been earmarked for the broadband component of the US

national broadband plan, Singapore has launched its 10-year IntelligentNation 2015 (iN2015) plan, Malaysia is implementing its high-speedbroadband program, and Japan's Next-Generation Broadband Strategy 2010is underway. Services that depend on high quality broadband infrastructurecomprise of e-health, e-education, e-business, digital media, e-government,smart meters etc. While the schedules and technical details of these national

broadband initiatives vary certain trends are common in all.

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1.1 Making NBN eco friendlyAs massive-scale investment and infrastructure projects, national broadbandinitiatives inevitably need a robust environmental plan, including theapplication of clean energy sources and energy-efficient technologies, andthe reuse of existing network equipment and site facilities. All countriesinvolved in NBNs are keenly looking towards this matter. All governmentsare making sure that the technology that is used in the next generationnetworks is environment friendly because of the growing concern overglobal warming every government wants their technology to be the best mixof all things; financially sound, affordable, high speeds and eco friendly.

1.2 Operators getting involved in NBNsA lot of next generation network investments are by the incumbents

worldwide and lots of investments on the access side whether they are beingsubsidised or are being driven by competitive pressures are provided by theoperators. Higher speeds and higher bandwidth are being offeredeverywhere by all operators across the globe.

1.3 Making NBN affordableThe price is probably still high and that could be either driven by networkconstraints not to drive demand beyond the current capability, but prices are

being revised and dropped continuously worldwide. The main trend allover is to provide all households with high speeds along with affordability.Governments are working on the issue to get the prices down and make the

NBN affordable to all people.

1.4 Governments picking up the bill for the cost ofnext generation broadband networksGovernments of many countries are involved in next generation broadbandnetworks from the cost side. They are trying to support the incumbent or theselected national broadband operator with the financial support to be able todeploy the fastest possible network, and to be able to set up the right

consortium that will be able to execute the deployment of the network asquickly and efficiently as possible. The policy makers are the key players forthe deployment of NBN as the challenges that are faced by the individualoperators are to a large extent removed by the government helping theoperators to work smoothly towards deploying the access network.

1.5 Different geographies different technologies

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Another trend which has been seen around all the countries which areinvolved in national broadband plans is that the governments rather thantrying to push a particular technology often push a particular level of serviceto be offered in different geographies. The common trend seen is that in ruralareas the maximum speed offered by the NBN is 1Mbps or 2Mbps and it isup to the operator to decide on what technology to use. Some operatorsmight consider wireless technology as a component of NGNBNs when theydo their cost benefit analysis. In many situations where there is a lack ofdensity, wireless can be more attractive, particularly for last mile access.

1.6 Use of multiple technologiesMany operators are using multiple technologies, most commonly copper andfibre, they go hand in hand. Sure Telecom, Malaysia is one example. Theoperator was awarded the contract to build an NGNBN, however they are

not using a lot of fibre. They are improving their copper distribution so thatthey shorten the last mile in order to be able to give higher speeds, and theyare deploying most of the fibre in the back end to make sure that they donthave a problem with things like aggregation. When it comes to high rise

buildings, it probably makes sense to have a connection going directly intothe building having the distribution fibre to the home because it is moreeconomically suited. But if there are less dense areas, the fibre will probablyreach to a certain distribution point in the vicinity of homes where the use ofthe existing copper to reach each home is more effective.

1.7 Improved regulationsOperators worldwide have stressed the need for governments to openmarkets to greater competition and use incentives to stimulate investment innational broadband networks. The operators have advocated technology-neutral regulation and urged regulators to provide sufficient spectrum for theongoing development of converged services in the NBNs.

1.8 Providing huge number of services worldwideThe NGN broadband network has enabled seamless communication,ubiquitous access, and introduced intelligence into service offerings, as wellas bringing an expanded range of satisfaction through the high bandwidththat it has enabled. IPTV is an imminent NGN broadband application.Telepresence, telemedicine, virtual presence are the applications in the

pipeline.Online gaming is also coming and this is something which has ahuge market waiting for it in the near future.

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1.9 Remove duplicationIt is expected that the operators will deploy NBNs nationwide but in a verycostly manner because of possible duplications in investment or because themarket is not very efficient. In this case the governments introduce new

business models in the market, either by licensing new types of operators orby introducing regulations that push towards more infrastructure sharing andmore consolidation. This reduces the cost of deploying these networksaccelerates the migration towards more affordable services.

2. Factors driving growth

2.1 NBN improves the government interactionNext-generation national broadband networks can significantly improve theway that consumers, businesses, and governments interact, spurringeconomic growth and productivity. The NBN sector not only increases therevenue for the ICT or telecom sector but increases the overall GDP.Governments can aggregate their connectivity needs over the National

Broadband Networks (NBN), they can make the business case for nationalinfrastructure more compelling. This is especially the case in developingcountries, where government is usually one of the major users of broadbandinfrastructure.

2.2 Smooth functioning of NBNGovernments play a key role in the deployment of such networks to

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overcome the hurdles that cannot be addressed by the private sector e.g. themagnitude of the investment, the models for generating returns, and theregulatory risks.

2.3 Removal of barriersPolicymakers with the right focus and use of resources can break down the

barriers to next-generation broadband infrastructure development becausethere are market weaknesses which delay the deployment of the networksthat are needed to meet market demand

2.4 Earn benefitsGovernments are going to reap significant benefits by deploying the national

broadband networks because the impact of this is not just on the telecomssector but all the other economic sectors and it is about the performance of

the broader economy and competitiveness. Thegovernment willGenerate revenue from the planned sale of the NBN

3. Challenges facing the SectorThe following challenging issues can hamper the National broadbandnetwork:

3.1 Finding skilled personsThere are difficulties in finding the right consulting and engineering

partners who can deliver the complete NBN and who have actually done itbefore. Since these projects are new and still developing it is very difficultfor the operators to find the skilled persons who can actually cope up withthis new technology and bring about the right kind of results.

3.2 Appropriate regulatory frameworkThe policy and regulatory issues must be developed to encompass both thenew NBN network and legacy networks of current telecommunicationservice providers. Failure to do so will undermine the NBNs capacity toachieve commercial rates of return, ensuring appropriate consumer

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safeguards and remain aligned with the Governments policy objectives.

3.3 CostlyCore elements of the network, such as network nodes, will require costlyupgrades at regular intervals and for this purpose very huge investment isneeded. Developing countries will face many problems regarding this issue.

3.4 Various complexitiesTechnical, political and business process-related complexities could hinderthe adoption of innovative opportunities such as IPTV, e-health, and smartmetering.

3.5 Political issuesA change of government threatens the long-term vision of a FTTH national

broadband network.

3.6 Pricing issuesSlow uptake of NBN subscriptions by business and consumers could be areality unless broadband packaging is competitively priced.

3.7 Developing the applicationsTake-up could be slow unless applications are developed by operators andthird parties to encourage usage

Further challenges include:

Harmonizing policies and regulatory frameworks

fostering public-private partnership and private investment

removing the barriers to competition

deploying modern, ubiquitous networks

facilitating the rapid development of convergent networks

accelerating new technologies, innovation, commerce, and growth

achieving full interconnectivity and seamless regional networks, and

achieving universal access levels

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Chapter 4: Countries and Vendors

LIST OF COUNTRIESINVOLVED IN

NATIONALBROADBAND

NETWORK

VENDORS

1.United States of America 1.Qualcomm(QCOM)

2.Alcatel lucent2.Australia 1.Alcatel lucent

2.Warren and Brown technologies3.Corning4.Prysmian

3.Korea 1.Huawei technologies

4.Malaysia 1.ZTE technologies

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5.Singapore 1. Huawei2.Nucleus connect

6.Qatar 1. Alcatel lucent

7.Japan 1. Huawei technologies

8.Hong Kong 1. ZTE Technologies9.United Kingdom 1. Huawei Technologies

Chapter 5: CHOICE OF TECHNOLOGY FOR NBN

Access to the NBN will be delivered through three types of technologies: thefibre optic advanced wireless technology and the satellite technology.Irrespective of how you are connected to the NBN, either through NBNfibre, NBN wireless, or NBN satellite a cable will connect the signal to a

box called a Network Termination Device or "NBN box". The box converts

the signals from the broadband network into signals recognized by yourhome equipment. It also provides a point where the network provider cancheck if the services are working properly.

1. Fibre optic cables will be used to connect up to approximately 93% ofAustralian premises, capable of delivering speeds of 100 Megabits persecond

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2. In mostly rural and remote areas where physical connection is not possibleby fibre, premises will first be connected by advanced wireless technology,capable of delivering speeds of 12 Megabits per second.3. Where fibre or advanced wireless connectivity is not possible, premiseswill be connected by satellite technology, capable of delivering speeds of 12Megabits per second.

1. Optical fibre:The national broadband network will operate mainly on optical fibre, a thinglass or plastic strand that carries light from lasers shone down the fibre anddetected by receivers at the other end. Fibre optic technology is used toconnect Internet service providers (ISPs) around the world because of itscapacity to rapidly move large amounts of data. Fibre to the premises(FTTP) uses an extensive network of optical fibre cables reaching all the

way to the premises, with Gigabit-capable Passive Optical Network (GPON)fibre-sharing. It has the capacity to handle several phones and PCs and ahigh-definition TV or two simultaneously.

2. Wireless:Apart from fibre optic there will also be the use of wireless, ninety seven

percent of the population will be connected via fibre and the remaining threepercent will be connected via wireless because fibre is more efficient andeffective. The specific technology used to provide wireless broadband

services varies from FTTP as in case of wireless each service provider usesradio frequencies to transmit and receive data between their customers and alocal transmission point. Normally, this requires a number of base stations,similar to mobile phone towers, which transmit to customers who have asmall transmitter/receiver connected to their computers or other digitaldevices. In the Fixed Wireless Technology, when using radio frequencies,distance is the key factor in determining the strength of the received signal.In the case of the fixed Wireless Technology, external antennas will be usedto improve reception and to deliver the right broadband experience, meaningless base towers need to be built.

3. Satellite:Satellite technology will be the last implemented option depending ongeography; primarily due to the signal latency i.e. distance the signal has totravel and the upload speeds .Satellite broadband speeds are generallyasymmetric which means the speed is greater from the satellite to the enduser than from the user to the satellite.

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Chapter 6: Country case studies

NATIONAL BROADBAND NETWORK MALAYSIA

The government of Malaysia is promoting the establishment of universalaccess and service (UAS) to broadband Internet through the Malaysia

National Broadband Plan (NBP),Infrastructure and service provision is to beconceded by industry, supported through enabling regulations and incentivesso as to establish an open market in which industry operators can creativelycongregate the growing demand for broadband connectivity in a variety ofways that include fixed, wireless and satellite approaches. Plannedapproaches include investing in connecting government offices, schools and

community organizations to broadband Internet and promoting e-government services accessible to local residents. Examples of targets fornetwork and broadband connectivity for institutions include:Broadband service subscriptions for organizations paid by governmentConnection of approximately 900 Federal, state and local governmentdepartmentsNetworking around 10,000 primary schools through the Schoolnet

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programme74 000 connections for public universities and research institutions4 000 hospitals and clinics networked and connected to internet resources;and1 700 libraries and a multitude of community centers with a focus oneducational, entertainment and e-commerce applications

Benefits to Malaysia:-

The implementation of broadband will create tangible impact on GrossDomestic Product (GDP) contribution of the country. Based on the statisticsfor year 2008, the communications and multimedia industry contributed6.1% in term of revenue to the countrys GDP The use of broadband will increase the national competitiveness and attract

Foreign Direct Investment (FDI) in the country Broadband is one of the enabler for knowledge-based economyWith the implementation of broadband and achieving the 50% target, willcreate 135,000 new high value jobs in the ICT sector The implementation of broadband services will create spin-off effect inother sectors such as engineering, local content development and

broadcasting

NATIONAL BROADBAND PLAN BRAZIL

The national broadband plan in Brazil was launched by Brazil'sCommunications Minister Paulo Bernardo in May 2010 with the aim of

providing mass internet coverage at low prices until 2014.The aim is to take 11.9 million households online over the duration of the

plan, while promoting the growth of the telecommunications infrastructureof the country. The government is looking to enforce minimum speeds of 1Mbps with prices starting at R$35 ($23). The estimated expenses that haveto be incurred for the PNBL between 2010 and 2014 will total R$13bn($8.5bn) State-owned Telecommunications company (Telebrs) is

responsible for the implementation of the plan, with private sector telcosacting in a complementary manner. Telebrs is in charge of bringing internetaccess to public spaces such as universities, schools and hospitals.According to Telebrs, about 100 Brazilian cities will benefit from thePNBL.According to the Ministry of Communications, the objectives of the PNBLare:

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Accelerate the entry of the population in the modern information society

Promote greater diffusion of e-government services to citizens andfacilitate the use of state services

Contribute to the evolution of telecommunications networks in the countrytowards new paradigms of technology and architecture looming on thehorizon, based on communications over IP

Contribute to the industrial and technological development of the country particularly the sector of information and communication technologies(ICTs)

Improve the competitiveness of Brazilian companies, especially those inthe ICT sector, as well as micro, small and medium enterprises of othereconomic sectors

Contribute to the increase of employment in the country

Contribute to the growth of Brazilian GDP.

NATIONAL BROADBAND NETWORK-SINGAPORE

The Next Generation National Infocomm Infrastructure (Next Gen NII) isSingapores new digital super-highway for super-connectivity. It willentrench Singapores Infocomm hub status and open the doors to new

business and social growth for the country. Next Gen NII comprisescomplementary wired and wireless networks to ensure Singaporeans enjoyseamless connectivity. The wired broadband network or Next Generation

National Broadband Network (Next Gen NBN) will deliver ultra-highbroadband symmetric speeds of 1Gbps and above, to all homes, offices andschools, while the Wireless Broadband Network (WBN) will offer pervasiveconnectivity around Singapore. The Next Gen NBN goal is to achieve 60 per

cent coverage of all Singapore's residential premises and non-residentialbuildings by the end of 2010, and 95 per cent of all residential premises andnon-residential buildings by 2012.

Telecommunications service provider StarHub has won the bid to operateSingapore's Next Generation National Broadband Network (Next-Gen

NBN). It will establish an operating company (OpCo) called Nucleus

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Connect to design, build and operate the infrastructure. Nucleus Connectwill be a wholly-owned subsidiary of StarHub, which began its commercialoperations in the first quarter of 2010. Nucleus Connect is responsible for

building a fibre-to-the-home (FTTH) architecture using GPON and ActiveEthernet network elements. The network architecture will incorporate aleading OSS/BSS platform which can provide end-to-end, real-timeassurance of service quality and reliability across different operationaldomains and network segments. For Retail Service Providers (RSPs), thedeployment of advanced technologies on Nucleus Connect's infrastructurewill enable a comprehensive range of ultra-high speed and innovative nextgeneration services to end-users.

NATIONAL BROADBAND NETWORK-QATAR

The Qatar government has established a new company, Q.NBN, toaccelerate the rollout of nationwide high-speed broadband. The SupremeCouncil of Information and Communication Technology (ictQATAR), thenations ICT policy and regulatory body, announced that Q.NBN will

provide optical fibre access to citizens and businesses across Qatar,achieving coverage targets in excess of 95 per cent by 2015. IctQATARsaid the national broadband will enable the use of multimedia andcommunications applications that are thought to be are central to developingQatars knowledge economy. The new network will primarily focus on thedeployment of a passive network infrastructure. The initiative was

developed in consultation with the states existing network operators; Qteland Vodafone. The company plans to work closely with the private sector,specifically network operators that are investing in a fiber-network to ensureefforts are not duplicated and assets are shared to maximize impact. Qtel hasalready committed considerable resources in their fiber-to-home efforts andVodafone-Qatar is also beginning construction of fiber optic networks, inaddition to passive infrastructure being built by some development

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corporations. The involvement of these entities in QNBN will play a majorrole in its success. Qatars government specifically expects QNBN toaccelerate innovation and knowledge creation across the government and

private sectors, improve the quality and efficiency of ICT services, increasecompetition and choice in the ICT market, and increase the resiliency ofQatars ICT infrastructure overall. Currently Qatar has among the highest

broadband penetrations in the world. Qatar expects QNBN to be a strongcompetitive advantage across a variety of sectors that will stimulate moredemand for access. Companies will be able to offer new products andservices as a result of greater broadband access and speeds on both thesupply and demand side. Qatar also foresees the emergence of vibrant digitalcommunities as a result of high speed broadband. These digital communitiescould span all sectors and Qatars government is working in a variety ofthese sectors to build demand, including programs in e-health, e-education,

e-commerce and e-sustainability.

MAJOR NBN PLANS

1. NATIONAL BROADBAND PLAN- AMERICAThe national broadband plan seeks to ensure that all people of the UnitedStates have access to broadband capability and establish benchmarks formeeting that goal. The mission of the plan is to create a more productive,creative, efficient America in which affordable broadband is availableeverywhere and everyone has the means and skills to use valuable

broadband applications. The plan includes:An analysis of the most effective and efficient mechanisms for ensuring

broadband accessby all people of the United StatesA detailed strategy for achieving affordability of such service andmaximum utilization of broadband infrastructure and service by the publican evaluation of the status of deployment of broadband service, including

progress of projects supported by the grants made pursuant to this sectionanda plan for use of broadband infrastructure and services in advancing

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consumer welfare, civic participation, public safety and homeland security,community development, health care delivery, energy independence andefficiency, education, worker training, private sector investment,entrepreneurial activity, job creation and economic growth, and othernational purposes

Goals of the plan:1. At least 100 million U.S. homes should have affordable access to actualdownload speeds of at least 100 megabits per second and actual uploadspeeds of at least 50 megabits per second.2. The United States should lead the world in mobile innovation, with thefastest and most extensive wireless networks of any nation.3. Every American should have affordable access to robust broadbandservice, and the means and skills to subscribe if they so choose.

4. Every American community should have affordable access to at least 1gigabit per second broadband service to anchor institutions such as schools,hospitals and government buildings5. To ensure the safety of the American people, every first responder shouldhave access to a nationwide, wireless, interoperable broadband public safetynetwork.6. To ensure that America leads in the clean energy economy, everyAmerican should be able to use broadband to track and manage their real-time energy consumption.

To achieve these goals specific recommendations have been specified tolaunch the process:

Part I of this plan makes recommendations to ensure that America has aworld-leading broadband ecosystem for both fixed and mobile service. Itdiscusses recommendations to maximize innovation, investment andconsumer welfare, primarily through competition. It then recommends moreefficient allocation and management of assets government controls orinfluences, such as spectrum, poles and rights-of-way, to maximize private

sector investment and facilitate competition.Part II makes recommendations to promote inclusion to ensure that allAmericans have access to the opportunities broadband can provide. Theseinclude reforming the Universal Service Fund and intercarrier compensation.It also makes recommendations to promote broadband affordability,adoption and digital literacy.Part III makes recommendations to maximize the use of broadband to

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address national priorities. This includes reforming laws, policies andincentives to maximize the benefits of broadband in areas where government

plays a significant role. This part makes recommendations to unleashinnovation in health care, energy, education, government performance, civicengagement, job training, economic development and public safety.Finally, the plan outlines an implementation strategy to ensure the countryexecutes these recommendations, creates a dynamic process and meets eachof the goals outlined

2. AUSTRALIAN NBNThe National Broadband Network (NBN) project is an AustralianGovernment initiative which will deliver high-speed broadband to allAustralians. The NBN is a new, wholesale-only, open access, high-speed

broadband network. The NBN will involve the laying of fibre optic cabling

to 93 per cent of Australian homes, schools and businesses, providingbroadband speeds of up to 100 megabits per second (Mbps). The remainingpremises will be connected via a combination of next-generation fixedwireless and satellite technologies providing peak speeds of at least 12 Mbps.The government has established a new company, NBN Co Limited (NBNCo), to design, build and operate the NBN.The NBN will enable all Australian communities to have greater access togoods, services, education and employment opportunities. The NBN willensure that every community in regional Australia gets fair access toaffordable high-speed broadband. This includes the delivery of a uniformnational wholesale price. But there is still more work to be done to ensurethat the benefits of the digital economy are enjoyed equally by thoseAustralians living in metropolitan and regional areas. Current data indicatesthat the number of Australians who have never used the internet is higheramong those people living in regional and remote areas. For example, 34 percent of people from outer regional and remote areas aged 15 and over didnot use the internet in 2008-09, compared with only 23 per cent of people inAustralias major cities. Data indicates that 29.7 per cent of businesseslocated outside of capital cities have a web presence, compared with 39.5

per cent of business located in capital cities. Elements of the DigitalCommunities and Digital Enterprise initiatives will help address these gaps.Similarly, the telehealth trials and NBN-enabled tele-education trials willoccur in regional areas and allow expertise to be developed locally. Inaddition, the NBN Regional Legal Assistance Services initiative will

promote delivery of legal assistance services and attract and retain staff inselected regional areas.

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Government initiative:-In 2009 the government initially committed to investing up to $43 billion inthe NBN. On 20 December 2010, the NBN Co Limited (NBN Co)Corporate Plan confirmed the total capital expenditure for the project isestimated to be $35.9 billion, less than the governments original $43 billionestimate. The government expects to contribute $27.5 billion in equity forthe rollout. The NBN Co Corporate Plan confirms that the NBN will provideall Australians with world-class broadband on a financially viable basis ataffordable prices. The governments commitment to prioritize the roll-out ofthe NBN in regional Australia will promote greater engagement in the digitaleconomy in these areas. For the Digital Communities and Digital Enterpriseinitiatives, a minimum of 23 communities targeted will be in regionalAustralia. The Digital Communities initiative will deliver economic andsocial benefits to regional communities by improving access to information,

health, education and government services. The Digital Enterprise initiativewill assist local businesses and not-for-profit groups, including local culturalinstitutions, to increase their productivity, expand their customer base andgrow their revenues.In the 2011-12 Budget, the government provided $4.07 million over fouryears to initiate the delivery of legal assistance services utilizing the NBN todeliver legal assistance services, and to attract and retain staff, in selectedregional areas by providing grants to legal assistance providers (legal aidcommissions, family violence prevention legal services, Indigenous legalservices and community legal services). Grants will give providers greaterfinancial flexibility to address issues such as remote training and supervisionand explore NBN-based options to increase access to services. TheGovernment has a two-stage strategy to fix the regional backbone problemin Australia.

Part one is to fast-track $250 million of investment via the NationalBroadband Network Regional Backbone Black spots Program to quickly

unlock the potential for alternative providers to access these markets.Backbone infrastructures (otherwise known as backhaul or transmissioninfrastructure) are the links that connect towns, cities and rural areas to eachother and the wider world. Backbone infrastructure is a critical input thatsupports the delivery of a range of services including broadband, fixed voiceand mobile services.

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Part two is the broader rollout of the NBN. The rollout of the network willbe considered in the NBN implementation study.

The NBN will also significantly reduce download times for content withhigh bandwidth requirements, like television programs, documentaries andmovies. Downloading an average compressed movie (1 gigabyte (GB) ofdata), can currently take between 8 and 24 hours. At a speed of 12 Mbps,

people will be able to download the same movie in 11 minutes and 7seconds. If the speed is increased to 100 Mbps, the movie could bedownloaded in as little as 1 minute and 20 seconds. See the table below formore detail.

Continuous download speed Time to download an average

compressed movie (1 GB of data)100 Mbps 1m20s

30 Mbps 4m27s

12 Mbps 11m7s

256 kbps 8h41m

56 kbps 1d16h

Premises on the fibre optic access network services will have connectionsthat are unconstrained by other users and will be available at all hours. Forfixed wireless and satellite users the access network will be shared, but theaverage data rates proposed will be available at all times with higher

performance levels at times of low usage. Australia ranked eighteenth interms of fixed broadband take-up but the NBN will provide key enablinginfrastructure to support Australia becoming one of the worlds leadingdigital economy by 2020. The NBN will be a critical national asset forgenerations to come..

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BENEFITS:-Every single Australian will benefit from the rollout of the NationalBroadband Network, either directly or indirectly. The NBN will improveaccess to business and job opportunities, health, education and government

services and it will allow Australians to more easily share common interestsand keep in touch, regardless of location. Online engagement can alsoreduce feelings of isolation and enhance family relationships. It can be of

particular value to families or family members who are geographicallyisolated or live far from home.Additional benefits include:

Education: High-speed broadband, delivered to every Australianhousehold, has the potential to extend the reach, availability andquality of education services, regardless of location. The NBNs

greater capacity will allow for more immersive online interactions,resulting in higher quality outcomes for students. The AustralianGovernment has committed that, by 2020, all schools, TAFEs,universities and higher education institutions will have theconnectivity to extend access to online learning resources to the homeand the facilities to offer students, who cannot access specialist classesvia traditional means, the opportunity for online virtual classes.

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Health: Australias health system is facing increased pressure due toour ageing population, increased rates of chronic disease and healthworkforce challenges. The NBN will enable homes, doctorssurgeries, pharmacies, clinics, hospitals, aged care facilities and alliedhealth professionals to connect to affordable, reliable, high-speed andhigh capacity broadband. This represents a major opportunity toimprove the way healthcare is delivered in Australia. The AustralianGovernment has committed that, by 2020, 20% of medicalconsultations will use electronic or telehealth capabilities meaning

providers will be able to diagnose, monitor and provide ongoing careto patients remotely; saving lives, time and money for Australians, and

particularly those who currently have to travel to receive healthcare.

SWOT OF NBN

Strengths:

NBN has helped in developing skills in ICT

Provides residents with access to information and knowledge presentlyunavailable to them

NBN helps in reducing duplication of services and increasing efficiency as

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a result of sharing resources and expertise offered by Government,educational and community organization and individuals, withincommunities and across regions

NBN is the technology which has removed the socio-economic gap whichexists across geographic regions

Reducing out-migration as a result of increased local economic opportunityand improved quality of life

NBN is adding value to and benefiting from a strong local economy basedon sustainable development

NBN is helping make the region or community more economically self-

sufficient by providing a range of ICT-based services that address localneeds in the areas of communications, distance or lifelong learning, e-commerce, health, education, culture, environment and sustainabledevelopment

Through NBN the people can share best practices and sell products andservices on the internet

NBN helps in increasing and diversifying economic activity

The NBN technology is increasing the number of local businesses using e-commerce

As a result of more effective marketing and the on-line presence of localarts and crafts the NBN helps in increasing the local tourist industry

Through NBN a dedicated full speed internet is available up to 20 km fromthe fibre exchanges e.g. 100 Mbps

By deploying NBN fibre to the building plus LAN network in largebuildings can be more cost effective per premises

Internet services can be delivered across borders. e.g. VOIP telephony

Information can be shared quickly en route for research, businessintelligence and innovation

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Computing services can be accessed at high speed over hefty distances.e.g. remote cloud backup facilities

High speed broadband provides health monitoring and remote patient todoctors consultation. Patient health can be monitored over the Internet inreal time. Doctors, specialists and patients can consult over video conferencelinks in high definition. Patient test results can be distributed quickly to

patient. Scans can be sent to specialist for analysis in different regions oreven countries. Medical work can be distributed to where capacity exists toimprove patient response times

Traffic information can be collected and distributed in real time to managetraffic congestion and help with future planning. Commuters can be given

information to help with route planning and reduce time and fuel wastage.Accidents can be reduced with real time conditions given back to drivers.Public transport times can be updated in real time to help commutersschedule there time. Real time analysis of traffic in terms of vehicle speed,separation and conditions requires a high speed network. Teleworking ortelecottaging can reduce the need for travel time to city offices

With the use of NBN e-learning can now be performed with betterinteraction between students, teachers, administration, regions and nations.

New forms of education delivery can be achieved via music, video and webcontent. Cloud computing can provide computing education resources to awide audience efficiently

Small to Medium business is very much benefited by NBN as they canaccess new shared scalable Cloud computing services. Applications such asemail, web hosting, virtual machines, online application can be provided.Computing resources can be paid for in as a needed model. Web resourcescan be changed to individual business market demand quickly

Opportunities:

As a direct result of Broadband Internet nearly one in five i.e. 18% of newjobs were created. Especially small businesses are largely dependent onBroadband Internet as 28 percent of new jobs in that sector are attributed tousing the Internet

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The National Broadband Network will offer unprecedented opportunitiesfor businesses to diversify and tap into new markets

The NBN popularity is so much that more than half of all businesses (54%)said that they would not be in business if they did not have broadband, whiletwo in five (41%) would have to relocate if broadband was not available intheir community

Nearly two-thirds (65%) of households are using broadband to at leastsupplement their income by selling items online

Opportunities to improve interactions with customers and servicerecipients recognized the importance of Internet and Email communicationsin advertising, marketing and communicating, including the potential of the

NBN to improve a businesss ability to promote itself online

Owners of small businesses typically agreed that high-speed broadbandoffered great potential to develop new products and services as well asaccess new markets

The improved Internet quality made available though the NBN willencourage greater provision of services in order to attract more customers asmany businesses offer internet as an ancillary service e.g. in cafes and hotels

The stakeholders of many businesses and organizations identified a numberof ways in which the NBN has an impact on their day-to-day business andorganizational activities

Entrepreneurs remarked that high-speed broadband would allow forbusinesses to move their operations to regional centers, while maintainingonly a corporate presence in the major cities

Threats:

The major threat for NBN is the competition from current high speedofferings, such as high speed cable access and ADSL2+ broadband whichare now becoming more widely available. Although typical average speedsthrough these offerings are far lower than the potential 100Mbps that will beavailable via the completed NBN, full implementation of the NBN will stilltake up a good amount of time and furthermore the lower speeds will be

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sufficient for a significant section of population over the next five to tenyears

Wireless is another threat to National Broadband Network. The massiveupgrade of a mobile network which is providing downloading speedscomparable to broadband. A government-commissioned review has foundcompetition from alternative technologies is a key risk to the NBN

The shortage of IT skilled persons is another threat to NBN

There are many other threats to NBN:1. No Cost Benefit Analysis2. Metropolitan Subsidy3. Marginal Benefits

4. Large Debt5. Competition

Weaknesses:

The costs and time associated with services resulting from the NBN anddeveloping Internet capabilities is one of the weaknesses of NBN. The costsinvolved and time required in web design, server maintenance andinfrastructure, IT systems and support are already high for many

Outdated end user hardwareNBN would only be as good as the lowestcommon denominator. That is, if end user hardware lacked the capability tohandle the content delivered, then producing that content would be a wastedexercise.

Asymmetric upload and download capacity the upload/download speedsare likely to be asymmetrical. This means that the bandwidth allocated fordownloads would exceed that for uploads by several magnitudes. This splitwas considered appropriate for households, but inappropriate for business.For business to obtain the most value of the NBN throughvideoconferencing, VPNs and online collaboration requires a symmetricupload/download bandwidth allocation

The network would require uniform platforms through which businesscould interact with customers and suppliers

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Many small businesses and organizations were committed to moretraditional industry practices. Some of these businesses/organizations havenot embraced current Internet technologies, and were unlikely to be attracted

by the capabilities of the NBN.

Project Final Edited 1

Documents

Transcript of Project Final Edited 1