UNCLASSIFIED

The nbn™ network: The state of playSarah PalmerEGM Product & Pricing, nbn

Commsday Wholesale & Datacentre SummitJuly 19, 2016

2

nbn – our 2020 goals

Deliver services to 8 million happy homes and businesses1

2

3 5

4© 2016 nbn co limited | nbn-Confidential: Commercial

Deliver access to high speed broadband to all Australians

Provide access to wholesale speeds of least 25/5Mbps to all premises nationwide

Generate $4 billion in annual revenues

Deliver satisfaction to our customers and to our end-users

3

The nbn™ network – has become a reality

What we said – 2.6M premises passed in FY16

© 2016 nbn co limited | nbn-Confidential: Commercial

What we delivered – 2.9M premises in FY16

Single Ethernet Bitstream product across all access variants

Footprint expected to be more than doubled in FY17 to 5.4 million

5 Access Variants launched – FTTP, FTTN, FTTB, HFC, Fixed Wireless and Satellite

We have hit our targets in last nine quarters

4

Premises activated – ahead of target

© 2016 nbn co limited | nbn-Confidential: Commercial

We delivered – 1.1M active services in FY16

Most end-users choosing 12/1 or 25/5 speeds

Increasing focus on business services

End-users access speeds of up to 100/40Mbps

We said – 0.96M active services in FY16

5© 2016 nbn co limited | nbn-Confidential: Commercial

Access technology FTTP FTTN/FTTB HFC Fixed Wireless Sky Muster

Satellite

Traffic Class 4(PIR) 12Mbps - 1Gbps 12Mbps - 100Mbps 12Mbps - 100Mbps 12Mbps - 50Mbps 12Mbps - 25Mbps

Traffic Class 1(CIR) 0.15Mbps - 5Mbps 0.15Mbps - 5Mbps 0.15, 0.3Mbps

(0.5 -5Mbps*) 0.15 - 0.3Mbps 0.15Mbps

Traffic Class 2(CIR) 5-100Mbps 5-20Mbps 5-10Mbps ** Not Available Not Available

Enhanced SLA 4, 6, 8, 12 by 24Hr 8, 12 by 24Hr 8, 12 by 24Hr* Not Available Not Available

Service transfers Available Available September 2016 Available September 2016

Test & diagnostics Available Available Available Available Available

b2b interface Activations & Assurance Activations & Assurance Activations & Assurance Activations & Assurance Activations & Assurance

* On Roadmap for 2017 ** On the roadmap for 2018+

The nbn™ network – one product to meet all needs

6

The nbn™ network – our roadmap

© 2016 nbn co limited | nbn-Confidential: Commercial

POI Redundancy

Enhancements to TC-2 offering (CIR, business grade data services)

Commercial premises solutions (ie high density NTD, out of hours installations)

Roadmaps to higher bandwidth services on all fixed line technologies

"With the currently planned access technologies Gigabit capability will be available to nearly half the country and 50-100Mbps for the majority of the rest - putting us in a leading position across

comparable countries."

Interim POI migrations

7

nbn: Dealing with a data deluge

Average nbn data

usage has spiked….

March 2015 = 89GB

Streaming video is creating surging

demand for bandwidth and

data

nbn is already capable of

supporting high throughput

applications (4k, IoT, VR / AR)

June 2016 = 137GB

Dimension based discount

introduced on CVC

© 2016 nbn co limited | nbn-Confidential: Commercial

8

Delivering the customer experience

© 2016 nbn co limited | nbn-Confidential: Commercial

As consumption increases market needs to make sure broadband remains affordable

New model calculated on average usage per end-user – not related to sheer volume

Will encourage RSPs to offer higher volume plans and hope to see QoS improve

nbn has now launched new Dimension Based Demand (DBD) pricing model

9

High speed is the best kept secret

© 2016 nbn co limited | nbn-Confidential: Commercial

There are now 50+ RSPs selling nbn™ services on the network

These RSPs are providing a wide range of pricing on nbn™ products

Only 16% of nbn™ end-users are choosing the top-end 100/40Mbps service

BUT usage is relatively constant across speed tiers

10

The volume of data is increasing dramatically

What is the role of the nbn™ network in

delivering the IOT era?

Time to focus on the benefits

© 2016 nbn co limited | nbn-Confidential: Commercial

nbn™ on track to be 50% complete by

June 2017 – 75% by June 2018

Focus must now be on how we use the nbn™ network now

it is here

How do we kick-start digital commerce?

Conclusion

© 2016 nbn co limited | nbn-Confidential: Commercial11

Questions