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Retail Service Providers (RSPs) can connect their network to the NBN at one of the 121 Point of Interconnects (PoIs). Each premise connected will be given a [[Network interface device|Network Termination Unit]] (NTU) which gives four [[Ethernet]] ports and two [[Analog telephone adapter|Analogue Telephone Adapters]] (ATA). To connect a PoI to each NTU, NBN will use either fibre, fixed wireless or satellite. Within the fibre footprint businesses can be connected using Ethernet [[Point-to-point (telecommunications)|Point-to-Point]] fibre while home users will be connected via Gigabit [[Passive optical network]] (GPON). The fibre will be connected to a distribution hub which is linked to a PoI via a fibre [[Backhaul (telecommunications)|backhaul]]. Homes and businesses outside the fibre footprint will be connected via fixed wireless or satellite, although NBN Co will consider expanding the fibre footprint where users or communities are willing to pay the incremental cost increase of installing a fibre connection. Unlike the current [[3G]] and [[Wi-Fi]], only the NTUs can connect to the [[4G|fourth generation]] wireless [[base station]]s, which links to a PoI via a fibre backhaul. NBN Co will use [[Frequency spectrum|spectrum]] brought for {{nowrap|A$120 million}} to delivery services from mid-2012. Two satellites are planned to launch by 2015 at a total cost of {{nowrap|A$1 billion}}. In the interim, a satellite is due to launch in {{nowrap|July 2011}}, although only providing six megabits per second. To provide the twelve megabits per second speed the two satellites will use the [[Ka band|K<sub>a</sub> band]], which is not widely used yet. A [[satellite dish]] connected to the NTU will bounce signals off the satellites to a ground station which connects to a PoI via a fibre backhaul.
Retail Service Providers (RSPs) can connect their network to the NBN at one of the 121 Point of Interconnects (PoIs). Each premise connected will be given a [[Network interface device|Network Termination Unit]] (NTU) which gives four [[Ethernet]] ports and two [[Analog telephone adapter|Analogue Telephone Adapters]] (ATA). To connect a PoI to each NTU, NBN will use either fibre, fixed wireless or satellite. Within the fibre footprint businesses can be connected using Ethernet [[Point-to-point (telecommunications)|Point-to-Point]] fibre while home users will be connected via Gigabit [[Passive optical network]] (GPON). The fibre will be connected to a distribution hub which is linked to a PoI via a fibre [[Backhaul (telecommunications)|backhaul]]. Homes and businesses outside the fibre footprint will be connected via fixed wireless or satellite, although NBN Co will consider expanding the fibre footprint where users or communities are willing to pay the incremental cost increase of installing a fibre connection. Unlike the current [[3G]] and [[Wi-Fi]], only the NTUs can connect to the [[4G|fourth generation]] wireless [[base station]]s, which links to a PoI via a fibre backhaul. NBN Co will use [[Frequency spectrum|spectrum]] brought for {{nowrap|A$120 million}} to delivery services from mid-2012. Two satellites are planned to launch by 2015 at a total cost of {{nowrap|A$1 billion}}. In the interim, a satellite is due to launch in {{nowrap|July 2011}}, although only providing six megabits per second. To provide the twelve megabits per second speed the two satellites will use the [[Ka band|K<sub>a</sub> band]], which is not widely used yet. A [[satellite dish]] connected to the NTU will bounce signals off the satellites to a ground station which connects to a PoI via a fibre backhaul.


NBN Co will sell layer two services of the [[OSI model]] to RSPs with uniform pricing for the basic package regardless of whether it is delivered via fibre, fixed wireless or satellite and with uniform prices in each technology no matter where the service is located. The RSPs will then resell the services to the public with a connection to the [[Internet]]. Larger RSPs can acquire layer two access direct from NBN Co while smaller RSPs can opt to purchase access from a wholesaler instead. [[Internet service provider]]s (ISPs), the [[information technology]] (IT) industry, [[business]]es and [[Vint Cerf]], recognized as one of [[People known as the father or mother of something#Technology|the fathers]] [[History of the Internet|of the Internet]] have spoken out in support of the NBN. However political support of the NBN is divided with the [[Australian Labor Party]] (ALP), the [[Australian Greens]] and the federal independents: [[Rob Oakeshott]]; [[Tony Windsor]] and [[Bob Katter]] supporting the project while [[Coalition (Australia)|The Coalition]] oppose it. The main objection to the NBN by The Coalition is the {{nowrap|A$27.1 billion}} of [[government spending|government funds]] used to build the project, instead arguing for less government intervention and additional private sector funding to achieve the same benefits. A survey found 74.5% of Australians surveyed support the project.
NBN Co will sell layer two services of the [[OSI model]] to RSPs with uniform pricing for the basic package regardless of whether it is delivered via fibre, fixed wireless or satellite and with uniform prices in each technology no matter where the service is located. The RSPs will then resell the services to the public with a connection to the [[Internet]]. Larger RSPs can acquire layer two access direct from NBN Co while smaller RSPs can opt to purchase access from a wholesaler instead. [[Internet service provider]]s (ISPs), the [[information technology]] (IT) industry, [[business]]es and [[Vint Cerf]], recognized as one of [[People known as the father or mother of something#Technology|the fathers]] [[History of the Internet|of the Internet]] have spoken out in support of the NBN. However political support of the NBN is divided with the [[Australian Labor Party]] (ALP), the [[Australian Greens]] and the federal independents: [[Rob Oakeshott]]; [[Tony Windsor]] and [[Bob Katter]] supporting the project while [[Coalition (Australia)|The Coalition]] oppose it. The main objection to the NBN by The Coalition is the {{nowrap|A$27.1 billion}} of [[government spending|government funds]] used to build the project, instead arguing for less government intervention and additional private sector funding to achieve the same benefits. A survey found 74.5% of Australians surveyed support the project.{{Citation needed}}


==Background==
==Background==

Revision as of 08:29, 24 April 2011

National Broadband Network (NBN) is an open access telecommunication network under construction to overcome the digital divide in Australia. Fibre to the premises (FTTP) will provide up to one gigabit per second to 93% of Australians, with the remaining premises serviced by fixed wireless and satellite technologies with a minimum speed of twelve megabits per second. The NBN, the largest single infrastructure investment in Australia's history, was announced after the Request for Proposals (RFPs) for the original A$4.7 billion election promised NBN was terminated by then Prime Minister Kevin Rudd, after facing a large compensation payment to Telstra and being unable to find private sector funding during the global financial crisis. The Australian government established the government-owned corporation, NBN Co Limited, to design, build and operate the A$35.7 billion network, originally estimated to cost A$43 billion. Following the revised Tasmanian Government's proposal, the Tasmania rollout began in July 2009 in three stages with the first services going live in July 2010. Construction of the first mainland sites commenced in July 2010 with first services going live on 19 April 2011. NBN Co and the Australian government signed a Heads of Agreement with Telstra to give NBN Co access to existing infrastructure to help the rollout. NBN Co indefinitely suspended a RFP for the main rollout on 1 April 2011 because NBN Co believed the pricing was "unacceptably high", but stated they were "confident of securing better value for money by going a different route".

Retail Service Providers (RSPs) can connect their network to the NBN at one of the 121 Point of Interconnects (PoIs). Each premise connected will be given a Network Termination Unit (NTU) which gives four Ethernet ports and two Analogue Telephone Adapters (ATA). To connect a PoI to each NTU, NBN will use either fibre, fixed wireless or satellite. Within the fibre footprint businesses can be connected using Ethernet Point-to-Point fibre while home users will be connected via Gigabit Passive optical network (GPON). The fibre will be connected to a distribution hub which is linked to a PoI via a fibre backhaul. Homes and businesses outside the fibre footprint will be connected via fixed wireless or satellite, although NBN Co will consider expanding the fibre footprint where users or communities are willing to pay the incremental cost increase of installing a fibre connection. Unlike the current 3G and Wi-Fi, only the NTUs can connect to the fourth generation wireless base stations, which links to a PoI via a fibre backhaul. NBN Co will use spectrum brought for A$120 million to delivery services from mid-2012. Two satellites are planned to launch by 2015 at a total cost of A$1 billion. In the interim, a satellite is due to launch in July 2011, although only providing six megabits per second. To provide the twelve megabits per second speed the two satellites will use the Ka band, which is not widely used yet. A satellite dish connected to the NTU will bounce signals off the satellites to a ground station which connects to a PoI via a fibre backhaul.

NBN Co will sell layer two services of the OSI model to RSPs with uniform pricing for the basic package regardless of whether it is delivered via fibre, fixed wireless or satellite and with uniform prices in each technology no matter where the service is located. The RSPs will then resell the services to the public with a connection to the Internet. Larger RSPs can acquire layer two access direct from NBN Co while smaller RSPs can opt to purchase access from a wholesaler instead. Internet service providers (ISPs), the information technology (IT) industry, businesses and Vint Cerf, recognized as one of the fathers of the Internet have spoken out in support of the NBN. However political support of the NBN is divided with the Australian Labor Party (ALP), the Australian Greens and the federal independents: Rob Oakeshott; Tony Windsor and Bob Katter supporting the project while The Coalition oppose it. The main objection to the NBN by The Coalition is the A$27.1 billion of government funds used to build the project, instead arguing for less government intervention and additional private sector funding to achieve the same benefits. A survey found 74.5% of Australians surveyed support the project.[citation needed]

Background

See also: Telecommunications in Australia

The original NBN was an election promise by then opposition leader Kevin Rudd leading up to the 2007 Australian Federal Election. The plan was to build a A$15 billion fibre to the node (FTTN) network with the co-operation of the private sector, including a government contribution of A$4.7 billion. This would end the conflict of interest of Telstra wholesaling Australia's major telecommunications infrastructure, known as the copper network,[1] and also providing retail services.[2][3]

After the 2007 election, a RFP was issued to build the NBN. Acacia,[4] Axia NetMedia,[5] Telstra,[6] Terria,[5] the Tasmanian Government[7] and TransACT[5] all submitted proposals to build the NBN, but Telstra was later excluded as their submission did not comply with the RFP requirements.[6] During the RFP the Australian government received legal advice stating that if they were to continue with the project and use the copper network, under the Australian constitution they would be required to pay fair compensation to Telstra, which was estimated to be A$15-20 billion.[3][8] With the other bidders unable to raise the funds for the project due to the global financial crisis and Telstra's compensation (which could be used by Telstra to build their own FTTP network, devaluing the government's network), the Australian Government terminated the RFP on 7 April 2009 and announced it would instead construct a FTTH network, which would bypass Telstra and the copper network. The Tasmanian Government was selected for fast-tracked negotiations to build on its proposal with a view to starting construction in July 2009. NBN Co Limited, a government-owned corporation, was established to design, build and operate the NBN.[9]

Construction

Set to become the largest single infrastructure investment in Australia's history,[10] NBN was originally estimated to cost A$43 billion, however this was revised down to A$35.7 billion by NBN Co.[9][11] The Australian government will invest A$27.1 billion of government funds throughout the construction of the NBN with a initial investment of A$4.7 billion, the remanding funds will be raised by NBN Co from the private sector. NBN Co has planned to payback the funds by 2034.[9][11] The construction of the NBN began with the Tasmania rollout which comprises of three stages. Stage one of the NBN, comprised of premises in Smithton, Scottsdale and Midway Point and construction of fibre "backbones", was announced on July 2009 with first customers getting connected a year later.[12][13][14] Stage two and three was announced on 21 October 2009 and 1 March 2010, respectively.[15][16] To help with the rollout NBN Co partnered with Aurora Energy but later terminated the partnership, although Aurora Energy will still play apart of the rollout.[17][18] Due to a low take-up rate in some areas the Tasmanian government passed opt-out legislation to allow NBN Co to install fibre to premises without consent from the owners, although owners can still decline the installation.[19]

The first mainland sites were chosen on 2 March 2010 and later expanded on 8 July 2010[20], the sites were chosen due to their varied topography and housing styles, representing the "challenges the NBN is expecting to face" during an Australia-wide rollout.[21] Both underground and aerial networks were trialled when construction commenced in July 2010 with first services going live on 19 April 2011.[22][23] A further 14 sites, comprising of premises covering all mainland states and territories, were announced on 8 July 2010 with construction due to commence in the 2nd quarter of 2011.[24]

NBN Co indefinitely suspended a RFP for the main rollout on 1 April 2011 because NBN Co believed the pricing was "unacceptably high", but stated they were "confident of securing better value for money by going a different route".[25]

NBN Co and the Australian government signed a Heads of Agreement in June 2010 with Telstra to provide compensation for the gradual decommissioning of the existing copper network. The agreement was estimated to be worth $11 billion to Telstra and benefits NBN Co by transitioning existing customers, eliminating a wholesale competitor and providing access to existing infrastructure.[26]

Network design

Overview of the NBN and how RSPs and wholesalers can connect to the NBN.

The NBN will have committed download speeds of one hundred megabits per second with peak speed of one gigabit per second for 93% of Australian connected via FTTH[27] using a Gigabit Passive optical network (GPON) or Ethernet Point-to-Point fibre, while the remainder will be serviced by fixed wireless and satellite technologies with a minimum speed of twelve megabits per second.[28]

File:Network Termination Unit for the NBN.jpg
The Network Termination Unit (NTU) used on the National Broadband Network.

Homes and businesses are connected to a Point of Interconnect (PoI) via GPON, Ethernet, fixed wireless or satellite. Businesses within the 93% fibre footprint can be connected using Ethernet while home users will be connected via GPON. Homes and businesses outside the fibre footprint will be connected via fixed wireless or satellite. The fibre, fixed wireless or satellite will be connected to a Network Termination Unit (NTU) which gives four Ethernet ports and two Analogue Telephone Adapters (ATA).[28] RSPs can connect their network to the NBN at one of the 121 PoIs.[29] Originally NBN Co planned for 14 PoIs but was overruled by Australian Competition and Consumer Commission (ACCC).[30] NBN Co provides layer two services of the OSI model to RSPs and wholesalers. Larger RSPs can acquire layer two access direct from NBN Co while smaller RSPs can opt to purchase access from a wholesaler instead.[28]

The FTTH will use GPON to connect premises to the NBN. One 2.5Gbps fibre cable will be shared between 16-32 premises using beam splitters and some businesses can opt to have a dedicated Ethernet Point-to-Point fibre.[31] The fibre will be connected to a distribution hub which joins the NBN via a fibre backhaul to a PoI.[28] The 7% of Australians not covered by the FTTH will be serviced by fixed wireless and satellite technologies, although NBN Co will consider expanding the fibre footprint where users or communities are willing to pay the incremental cost increase of installing a fibre connection.[32] The fixed wireless will use the fourth generation standards, WiMax and Long Term Evolution (LTE) technologies. Unlike the current 3G and Wi-Fi, wireless in the NBN will be fixed to the NTU which means only the NTU can connect to the network, other devices can not connect to the network.[33] NBN Co will use the 2.3GHz and 3.4GHz spectrum it brought from Austar for A$120 million to delivery services from mid-2012.[34] The NTU will be hooked up to an antenna to allow a connection to a base station which joins the NBN via a fibre backhaul to a PoI.[35][28] Two satellites are planned to launch by 2015 at a total cost of A$1 billion each offering eighty gigabytes per second of bandwidth.[36] In the interim, a satellite is due to launch in July 2011, although only providing six megabits per second. To provide the twelve megabits per second speed the two satellites will use the Ka band which is not currently used by satellite providers.[37] The satellites will connect to the NBN via a ground station called "gateway" then connected to a fibre backhaul until it reaches a PoI, the connection will be complete with a satellite dish connected to the NTU on each premise.[35][28]

Operation

The first customers were connected to the NBN in July 2010[12][13] and NBN officially launched on 12 August 2010.[38] At the time of launch the pricing was not finalised, instead access price for carriers was temporarily set at a flat rate A$300 per premise with no ongoing charges until July 2011.[39] NBN Co will have uniform pricing for the basic package regardless of whether it is delivered via fibre, fixed wireless or satellite and each technology's prices will be uniform no matter where the service is located.[40]

To provide this uniform pricing, NBN Co will cross-subsidise the cost of providing services to regional and remote areas with the lower costs of providing services in metropolitan areas. To prevent other fibre providers from undercutting the NBN Co in metropolitan areas, all new fibre networks are required to be open-access and charge similar prices. These rules are known as the "anti-cherry picking" provisions, which were passed into law with the other NBN legislation. The legislation only allows NBN Co sell to RSPs who will resell the service to the public, however NBN Co can sell to utilities and governments on the condition that the services are not resold.[41]

Reception

I consider [the NBN] to be a stunning investment in infrastructure that in my view will have very long term benefit. Infrastructure is all about enabling things and I see Australia is trying to enable innovation.

Vint Cerf, recognized as one of the fathers of the Internet.[42]

The IT industry initially kept a neutral to positive opinion of the NBN, however with few exceptions are now supportive of the NBN. Australian ISPs Telstra,[43] Optus,[44] iiNet,[44] Internode,[43] Vodafone-Hutchison,[44] iPrimus,[43] Macquarie Telecom,[43] Adam Internet[43] and Dodo[45] back the NBN while TPG is staying neutral[46] and AAPT along with PIPE Networks has spoken out against the NBN.[47][48] The Australian Internet Industry Association (IIA), who represents Australian ISPs and online businesses, supports the NBN as a "essential part of a modern economy."[49] Australian telecommunications engineer Professor Rod Tucker, winner of the 1997 Australia Prize and a member of the expert panel that evaluated proposals from the RFP, is highly supportive of the NBN labeling it a "once-in-a lifetime opportunity".[50] Microsoft, Google and Intel have also spoken out in support of the NBN.[44][51]

The political support of the NBN is divided between the ALP, Greens[52] and federal independents who support it and The Coalition who oppose it. Independent politicians Rob Oakeshott, Tony Windsor and Bob Katter, who played a key role in the 2010 Australian Federal Election, all support the NBN with Oakeshott and Windsor citing the NBN as one of the key reasons they decided to back an ALP Government.[53][54] The NBN was initially supported by the National Party however the project was later officially opposed by The Coalition.[55] The main objection to the NBN by The Coalition is the A$27.1 billion[11] of government funds used to build the project, instead arguing for less government intervention and additional private sector funding to achieve the same benefits. To push this point The Coalition released an alternative policy during the 2010 election, but it was rejected by the telecommunications industry because it lacked details, "vision" and did not deliver a "strategic national plan".[56][57] After the 2010 election, Malcolm Turnbull was appointed as the Opposition Communications spokesman to “demolish" the NBN.[58]

Peak Australian business group, the Australian Chamber of Commerce and Industry (ACCI) support the NBN with the CEO Peter Anderson calling it a "real productivity kick and benefit", but also called for more openness in relation to the costs of the project.[59] Australian Small business lobby group, the Council of Small Business of Australia also supports the NBN which creates "an equal playing field".[60] The Swinburne University conducted a survey revealing 74.5% of the Australian public supported plans to build the NBN.[61] Consumer lobby group Digital Tasmania is a supporter of the NBN, saying "[to] cancel the NBN ... would have sent Australia's broadband infrastructure back by five to ten years."[51]

References

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External links

Wikimedia Commons has media related to National Broadband Network.

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