NBN for Business · back-up, file sharing, that were previously the domain of big business • Services like online backup reduce costs for small business (much cheaper than previous

This document sets out NBN Co’s proposals in respect of certain aspects of the National Broadband Network. The contents of this document represent NBN Co’s current

position on the subject matter of this document. The contents of this document should not be relied upon by our stakeholders (or any other persons) as representing

NBN Co’s final position on the subject matter of this document, except where stated otherwise. NBN Co’s position on the subject matter of this document may also be

impacted by legislative and regulatory developments in respect of the National Broadband Network. All prices shown in this document are exclusive of GST.

Commercial in confidence | © NBN Co 2012

NBN for Business Melbourne: November 8th, 2012






Tim Smith General Manager Product Marketing NBN Co


Agenda

The Digital Economy & Business

- Peter Strong Executive Director, COSBOA

Business Over the NBN

- Chris Separovic, NBN Co

Service Providers Business Offerings

- AAPT

- M2 / Commander

Q & A Panel

4

The Digital

Economy and Small

Business?

Peter Strong Executive Director

COSBOA

5

The NBN

The NBN will provide confidence to people who

run a business.

They believe that high speed broadband will be

good.

What they like most is the reliability that the NBN

will bring.

6

Will business on the internet be like the

world of bricks and mortar?

If it is then close it down NOW!

7

Or ...

let’s make sure

the internet is a

fair place to trade

and to seek and

swap information.

8

Dealing with small business is

not like dealing with big business

A Small Business Operator will behave like an individual not like a medium/large business.

Behaviour is affected by time, demands from family and by business cycles, or by normal life events such as holidays, illness, staff shortages, equipment problems or stress.

Big business tell their experts to fix it or provide comment. Small business has to fix it themselves or pay someone.

Small business operators act like consumers not like business

9

Small business is a person

They are just people

They are young, they are old

They have kids, they are single

They have a disability, they are healthy

They are men and women

They work hard

They innovate

Some can deal with change some can’t

They all have to complete some fairly stupid red tape

10

Income and hours worked

58% of people who owned a franchise work more than 46

hrs a week

32% more than 56 hrs

73% earn less than $50k

32% make a loss or break even

Cost is 50k or higher for 60%

39% of small business owners earn less than $600 per

week – the same % as employees

54% of small business owners earn less than $800 per/w

11

Retail • Big developers control retail tenancy – mainly Westfield, Centro,

QIC and some others

• Coles and Woolworths dominate groceries

In practice this means ...

• The malls are often developed with support from government and only retailers in those malls can exist, retailers outside the malls find that customers cannot get to them

• Parking is only available at the mall and streets and bus stops are realigned to focus on the mall

• The big developers control what we buy, what colours we see, what music we hear and what shops exist in their malls

• We are basically forced to shop at the local mall

12

So is the internet different?

• Should be!!!!

• We can trade across borders and oceans

• We can pick our own colours and words and products

• We can build a site and sell our products full in the knowledge that our customers can find us and won’t be forced into a carpark far away

• We can change easily if our current ISP becomes too costly or difficult.

• In many ways our welfare is in our hands

• The NBN will give speed and consistency to online selling – making online business easier and more reliable

• It will also connect customers across Australia – making the market for our goods and service larger

Other small businesses

• Small business is more than retail ... around 20% of

small businesses are retailers

• As you saw before, we’re a diverse bunch with a diverse

set of needs

• E.g. access to multiple lines to run a call centre,

• or connecting workers across Australia to a cloud-based

server and videoconferencing

• Or send and receive large amounts of data e.g. video or

graphics files

13

14

What will the NBN do for small

business? • Better use of cloud computing – small businesses can now take

advantage of a whole range of services, like shared folders, online back-up, file sharing, that were previously the domain of big business

• Services like online backup reduce costs for small business (much cheaper than previous options, like offsite servers, tape backup, etc)

• Better use of HD videoconferencing - for some businesses, speaking to customers or clients via videoconferencing can replace travel, cutting costs

• For other small businesses, increased bandwidth means that they can work faster or not have to rely on sending files by disc

• E.g. graphic designers, photographers and video producers

15

What else?

• NBN will mean faster sign up and activation with service providers – business grade connections can be a hassle to activate, NBN should be faster and easier

• VOIP calls will open up more competition between telco providers

Benefits of faster broadband ...

• We can develop new products and processes

• We can publish our stories, thoughts and ideas

• We can make a lot of money if we are good enough

16

Some common attitudes towards

small business

• Small business need to become better managers.

• Don’t they understand how important - add area of interest - is!

• It doesn’t really matter if a small business fails, there is always someone to take their place.

• Why are small business operators so hopeless?

• It’s their own fault if they fail.

• Just how hard is it?

• It’s tough in business and that just the way it is.

17

Summary

• Small businesses are people and they are the

future of the commercial part of the internet

• We need to understand the things that small

business wants from faster broadband: fairness,

ease of use, solutions to problems, savings,

work/life balance

18

Thank you

Peter Strong

Executive Director

COSBOA Twitter #COSBOA

and owner of Smiths Alternative Bookshop Facebook: Smiths Alternativebookshop www.smithsbooks.com.au

http://www.smithsbooks.com.au/






Business Over the NBN Chris Separovic, Manager Business Products, NBN Co


Opportunities and Possibilities for Business

Many devices, many Customer Service choices

Dispersed workforce + remote specialist workers

Improved access to Cloud Services

Online ubiquity

Promotes flexibility on where work is carried out

End-users will need the right software, equipment and in-premises connection to access these services


• The foundation fibre product launched in 2011, is being extensively used by businesses already.

• Additional voice options and enhanced service levels were launched in 2012.

• These address approximately 70% of the business market already.

• With planned introduction of further business capabilities to the market

• “Before & After” end user experience for one NSW business:

What is NBN already offering for businesses?

Before, during peak times we couldn’t …

Use our hosted HR program which rosters our entire workforce.

Use our web-based tools that train our casual staff.

Connect to our corporate VPN.

Now, with the NBN, we can …

Enable more staff to work remotely and flexibly.

Grow our training business to include online classes for external clients.

Significantly increase our use of web based programs


The Willunga Farmers Market, South Australia

“We started with a YouTube channel with a market wrap on what was in season every

Saturday. Previously, without the NBN, it would take hours to load using our ADSL internet

connection.”

Workforce BluePrint, Southern Adelaide

“We’ve now redesigned the site in a way that’s far more engaging and customer friendly…

since being NBN-enabled, we’ve achieved some really exciting results. In the first three

months, we’ve seen a 25 per cent jump in new visitors to our website.”

We’ve now introduced training webinars with multiple clients at once that we host from our

office via video conference. … hugely profitable, move for us and the time saved on travel is

time better spent on business planning and with my family.”

Dejay Signs , Tasmania

“The first thing I did was download a 17 megabyte file from a graphic artist that took just

eight seconds. Before the NBN, I would either have sent it over on a DVD, or let the

download max out my connection. The difference is just astonishing.”

What are businesses doing with the NBN?


Speed & Functionality

Create New Market Opportunities P

rice

Sub $100 p/m (wholesale cost) Basic speeds &

functionality

Starting from $200 p/m

(wholesale cost) Committed information rates,

symmetric speeds, traffic classes & service level options

$TBC High Capacity,

Complex functionality & enterprise grade

service levels


Capability Releases


Capability Release: Business Services

Feature Expected Benefits Launch

Business Services: Phase 1 • Traffic Class 1: up to 5 Mbps* • Committed Bandwidth (CIR) • Strict Performance Characteristics

Ability to support multiple telephone lines within a business.

Now Available

Traffic Class 4: 12/1 - 100/40 Mbps* • Peak Information Rate (PIR) • No Performance Characteristics

Support applications such as online transactions, file transfer, email and internet browsing.

• Enhanced service levels (in relation to the standard fibre access service)

Support of businesses who operate extended hours.

Business Services: Phase 2 • Priority Tagged & Tagged Mode • New UNI-D operating mode

Allows Service Provider greater flexibility and control in managing their customer traffic.

Q1 2013

* Wholesale speeds. Speeds achieved by end users will depend on factors outside NBN Co’s control like equipment quality, software, broadband plans and how their service provider configures their network.

Target: Businesses whose requirements are running multiple voice services, online transactions, internet browsing, email and data transfer.


Planned Capability Releases


Planned Capability Releases – Medium Business

Feature

Expected Benefits

Expected Launch

Medium Business: Phase 1

• Traffic Class 2: up to 40 Mbps* • Committed Bandwidth (CIR) • Strict Performance Characteristics

Greater support of such applications as high quality video conferencing and collaboration applications.

H2 2013

• Enhanced service levels

Support of businesses who operate 24/7.

Medium Business: Phase 2 • Traffic Class 3: up to 100 Mbps* • Committed Bandwidth (CIR) & • Ability to burst to a Peak Rate (PIR)

Support for business grade applications such as Business virtual private networks.

H2 2014

Target: Businesses whose requirements include branch networking, higher service levels and guarantees of throughput to support mission critical applications such as business grade voice, data and video .



Planned Capability Releases


Planned Capability Releases – Enterprise Ethernet

Feature

Expected Benefits

Expected Launch

Enterprise Ethernet Service • Up to 1 Gbps* direct fibre solution • Committed Bandwidth (CIR) • Strict Performance Characteristics

Support of high capacity, redundant diverse access networks.

2015

• Enhanced service levels

Additional support of businesses who operate extended hours.

Target: Businesses who have requirements for highly flexible and scalable networks with enhanced support of convergence of voice, video and data across multiple locations.



• NBN Co’s business offerings are designed to:

– Provide you with the building blocks to construct your business offerings any way you choose.

– Enable you to extend your product range, providing more choice and value added service for your business customers.

– Can allow you to extend your reach into physical markets that previously have been un-addressable on the basis of geography or price.

– Foster the development of converged solutions, providing a greater range of services and potentially more choice and more competition – which could drive innovation and application development.

• … but ultimately give you the tools and flexibility to build products to meet the needs of various segments of the business market.

Summary






Service Providers Business Offerings






Service Providers Business Offerings AAPT: Nick Pachos Head of Product & Carrier Management


Source: Cisco Visual Networking Index [or VNI] Global IP Traffic Forecast, 2011-2016.


NBN Integrated into AAPT Product Portfolio


Seamless NBN Integration

• AAPT’s Strategy is to seamlessly integrate NBN Access into its full range of products

• As NBN releases new products, AAPT’s customers will have access to the broader reach and high speeds NBN brings


Products Available Today

• Internet

– National Wholesale Broadband

– IP-Line

• Voice

– ISDN

– SIP

• IPVPN

• Cloud (Public and/or Private through IPVPN)






Service Providers Business Offerings Commander: Sarah Curtis Director Product Marketing, M2


From chaos through to order, Commander streamlines your

business communication







Q & A Panel


Documents

NBN for Business · back-up, file sharing, that were previously the domain of big business • Services like online backup reduce costs for small business (much cheaper than previous