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American Chamber of Commerce in Australia

Mike Quigley

CEO NBN Co

14 May 2010

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Australia – At least 90% Fibre Coverage

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Australia – 10% Radio & Satellite Coverage

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A Diversity of Wholesale and Retail Business Models

Re

tail

Layer 2 Ethernet AccessNetwork Wholesaler

Wh

ole

sale

Retail service

provider

Retail service

provider

Retail service

provider

Retail service

provider

Layer 2 Ethernet Access Network Wholesaler

Layer 3

Wholesaler

Layer 2

Tunnel Protocol

Wholesaler

Layer 2

Backhaul

Wholesaler

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Physical Infrastructure Representation

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Network dimensions – replicating modules

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‘Real’ Fibre Serving Areas - Sydney

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RSPs better support end user applications

Source: LTE/SAE Trial Initiative (Oct 2009)

Consumer– Asymmetrical

Business– Symmetrical

– Business critical connection

– Service level guarantee

Industry – eg health

– Symmetrical

– Business critical connection

– Service level guarantee

– Ubiquitous

High-speed internet

bursty

IPTV

streaming

constant

(committed rates)

VOIP

constant

(committed rates)

Backup of data

Software-as-a-Service

High-definition voice

and video conferencing

Online collaboration

with remote workers

Online consultations

eprescribing

Remote diagnosis of

electronic medical images

In-home monitoring of

elderly-chronic disease

sufferers

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Government’s broadband approach

Setting the broadband objectives• 90% Fibre 100Mbps

• 10% Wireless 12 Mbps

• broadband ubiquity

NBNCo. Focus• Network design

• Product development / Pricing

• Operational process

• Sourcing / procurement

• Industry engagement

Implementation Study Focus• Regulatory construct

• Coverage/availability

• Industry structure/competition

• Policy imperatives

• Government investment case and funding

Outcomes• Implementable plan

• Business case

Execution

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Key Performance Indicators

EBITDA

Capex -Total

Free Cash Flow

End of main construction

Year

EBITDA Positive

Free Cash Flow Positive

$ Billion

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NBN Co’s Debt and Equity Profile

Total Funding

Govt Equity

Debt

End of main construction$ Billion

Year

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Fibre penetration in key economies

Source:FTTH Council, 2010

http://ftthcouncil.com/en/newsroom/2010/02/26/g-20-need-to-speed-up-on-fiber-to-the-home

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