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CommsDay Summit 2010

Mike Quigley

CEO NBN Co

20th April 2010

1

NBN Co Supporting Retail Service Providers (RSPs)

Retail Service Providers (RSPs)

Simple products

Wide coverage

Effective B2B interface

Cost effective

Support diversity of RSP

business models

Driven by innovation

Differentiation is key

Diverse product set

End user segmentation

Deliver value to end

users

2

A Diversity of Wholesale and Retail Business Models

Re

tail

Layer 2 Ethernet AccessNetwork Wholesaler

Retail service

provider

Retail service

provider

Retail service

provider

Retail service

provider

Layer 3

Wholesaler

Layer 2

Tunnel Protocol

Wholesaler

Layer 2

Backhaul

Wholesaler

Wh

ole

sale

3

Australia – At least 90% Fibre Coverage

4

Fixed Bandwidth Demand

5

Applications Evolution

6

Consumer and Business Wholesale Products

Consumer Products

Business-grade Products

Asymmetric speeds

Consumer grade

Mass roll out

High availability

Symmetric, higher speeds

Guaranteed reliable bandwidth

Business-grade Ethernet features

SOHO & SME(single site)

Top-end SME(multi site)

Enterprise(Large/branch n/w)

Both GPON and point-to-point fibre will be used to deliver Business-grade products

Better response and restoration timeframes

Available across entire NBN footprint

7

Small Business Bandwidth Drivers

Potential

Ban

dw

idth

Req

uir

em

en

ts

A small graphic design firm specialising in 3D design and animation.

They currently operate across two sites and employ eight staff.

Up to 5mbps 10mbps Symmetrical +50mbps Symmetrical

Here & Now Emerging

Email designs to clients

globally.

Skype for international

voice calling.

Online banking for

invoicing & payroll.

Regular remote backup of

important data.

Software-as-a-Service for

invoicing & payments, HR

management & anti-virus.

High-definition voice & video

conferencing.

Online collaboration with

remote workers & clients.

Real-time remote backup

of all data.

100% thin-client

computing.

Interactive online training

of new staff or for new

services via video-on-

demand.

3D video-conferencing

& collaboration across

multiple parties – locally

& globally.

8

Industry Bandwidth Drivers:The Healthcare example

Online remote consultations

& ePrescriptions.

Remote diagnosis of

electronic medical imaging

files by radiologists & other

specialists.

In-home monitoring of

elderly & chronic disease

sufferers – including activity

monitoring & alarms.

Emerging national

framework for individual

electronic health records.

30mbps

Full HD remote

consultations & emergency

medicine.

Ubiquitous sharing of large

3D medical imaging data.

Real-time, in-home

monitoring of biometrics for

elderly & chronically ill

patients.

Wide-spread usage &

acceptance of media-rich

electronic health records.

Limited online

consultation &

ePrescribing trials.

Limited sharing of medical

imaging files.

Basic electronic in-home

monitoring alarms.

Piecemeal electronic

health record systems.

Here & Now Potential

Ban

dw

idth

Req

uir

em

en

ts

Up to 5mbps 100mbps

The Australian healthcare industry is facing significant challenges around an ageing

population, chronic disease, skills shortages & remote/rural service provision.

Efficiently using scarce resources and enhancing quality of life.

Emerging

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Latest LTE/SAE trials show significant differences

between peak rates and end-user throughput

Notes: 2x20MHz, 2x2 MIMO

Source: LTE/SAE Trial Initiative (Oct 2009)

10

Base station requirements to deliver a “best-efforts”

wireless broadband service to metro Australia

Notes:

1. Assumed radio capacity is 360Mbps per site, based on LTE (3 sectors) operating at 700Mhz with 120 MHz of spectrum and benefits of 1.6x spectral efficiency uplift from IMT

Advanced.

2. Provisioning of capacity assumes a contention ratio of 1:5 (e.g.: 1 in 5 subscribers active at any one time).

Source: NBN Co analysis; ABS8146.0 - Household Use of Information Technology, Australia, 2008-09

Current

household

broadband

penetration in

Australia

0

20,000

40,000

60,000

80,000

100,000

120,000

140,000

160,000

180,000

200,000

10% 20% 40% 60% 80% 100%

Num

ber o

f bas

e st

atio

ns r

equi

red

Broadband take-up (as % of metro premises)

2 Mbps CIR / 10 Typical

3 Mbps CIR / 15 Typical

4 Mbps CIR / 20 Typical

5 Mbps CIR / 25 Typical

6 Mbps CIR / 30 Typical

7 Mbps CIR / 35 Typical

Current

household

broadband

penetration

in

Australia

11

Fibre penetration in key economies

December 2009 Ranking Source: Fibre-to-

the-Home Council February 2010

12

Regional Initiatives

13

PON Evolutionary Paths

Wavelengths per direction

To

tal P

ON

ba

nd

wid

th (

Gb

ps

)

10G PON

2.5G PON

4λ x 10G PON

(40Gbps)

4λ x 2.5G PON

(10Gbps)

0 1 2 3 4 5

10

100

10G TDM PON electronics

technical challenges are being

worked on by the industry—will

take net 2–3 years for maturity

TDM GPON is starting

mass deployment now

and has a long life to go

Hybrid GPON may

be a practical

evolutionary step

Longer-term

evolution to

40Gbps is possible

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