NBN - where to now?

Since the election of the Abbott government in September 2013, debate has raged over technologies to be used by the NBN Co to provide the necessary infrastructure to meet Australia’s future needs in a global economy.

Fibre to the premises (FTTP) is the best solution, but the rollout timeline and cost blowouts have seen the new government looking for alternative solutions. The NBN Co plans to upgrade the current telecommunications network in the most cost-efficient way using best-fit technologies and existing infrastructure. It is understood that it will take another 12 months to review alternative strategies around a hybrid solution. One technology touted is use of the hybrid fibre coaxial (HFC) network. This would bring Telstra back to the negotiating table regarding access and price. The use of new technologies will vary from place to place, but will include fibre to the node (FTTN), FTTP and fibre to the basement (FTTB), fixed wireless and satellite.

While all this is being played out, the NBN continues to roll out across Australia. The first major milestone in the journey is the permanent disconnection of copper networks in 15 areas on 23 May 2014. In the areas where FTTP is being rolled out, NBN will replace most existing landline phones, ADSL internet and Telstra internet services. The NBN will also replace Optus cable internet and cable phone services. Typical legacy services that currently run over a phone line include: personal alarms; security alarms; fire alarms; EFTPOS terminals; lift/elevator phones.

The disconnection of copper services will continue throughout 2014. After NBN declares an area ready for service, an 18-month copper disconnection notice is sent to end-users’ premises in that area. Telstra is then obligated to cease sale of any copper connections to that area. This will drive customer connections to the NBN.

Important points to remember include: the NBN Co does not do any internal wiring within the customer’s premises beyond the network termination device (NTD); customers order a service from the retail service provider (RSP); the security industry can test their products in a test facility known as Plug Bench in Melbourne; review your NBN migration options for your customers.

Do you know which devices/products are expected to work? Installation firms should be prepared to answer questions from their customers and they should also ensure that their staff members are fully briefed on what to say to customers. Typical questions from customers will include: Will my landline be disconnected?; Will my alarm system work?; Do I really need to move to the NBN?; Where should I have the NDT installed?; Will there be any costs involved?

ASIAL recommends that installers take the opportunity of contacting the NBN Co for a list of addresses of premises that will be disconnected. They will be asked to sign a non-disclosure agreement (NDA) before receiving the information. The installers will then be able to match this list of disconnections against their database and identify customers that will be affected. They can then communicate with these customers and advise them what they need to cover with the RSP when they contact them, including:

• tell the RSP you have an alarm system
• ask if the RSP will be providing a UNI-V voice port
• order a back-up battery
• confirm where the NTD is to be installed

It is important to note that:

• not all RSPs will offer a UNI-V voice port
• not all RSPs will offer an on-site install (from the information we have received, Telstra offer a professional install service)
• some RSPs will just send out the router to be plugged in by the customer to the NTD

The above will potentially leave customers without a connection to existing wiring and may result in customers incurring costs for remedial wiring.

The NBN rollout remains a work in progress. While there is uncertainty regarding the technologies the NBN Co will use, it is important to understand that the rollout will still continue.

As the saying goes, if you fail to plan, you plan to fail. It is important to get on the front foot with your customers by contacting them now and advising them of what is happening and how you can assist them. If you don’t, one of your competitors will