Here's What NBN Had To Say About Claims That FTTP Is Better Value Than FTTN

Research has revealed the longer term costs and savings of Fibre To The Premises when compared to Fibre To The Node, but NBN says a fast rollout is priority.

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FTTP would deliver better value than FTTN, according to research from Monash University data analyst Richard Ferrers.

In response a representative from NBN told Gizmodo "the figures used as the basis for his analysis are from draft documents from early 2015 -- not endorsed by our executive."

Ferrers writes that the access to NBN's financial figures, due to the release of internal documents late last year, enabled the comparison of FTTP to FTTN.

As reported by Delimiter, with his analysis Ferrers took into consideration operation costs and revenue for both technologies six and a half years after deployment.

“The longer FTTN remains in place, the greater the foregone benefit for not switching to FTTP,” he wrote.

Despite costing $2,300 more per premise to install than FTTN, the analysis showed FTTP cost $220 less per connection per year, and the install cost would be earned back in 76 months. FTTP also generated almost $10 more revenue each month than FTTN.

“This is a total net benefit of $360 per household per year for using FTTP over using FTTN.” writes Ferrers.

He takes analysis further into the future to reveal this figure could amount to $9 billion over ten years.

In response to the research, NBN says speed of install and deployment being of greatest importance.

"Our priority is to provide access to the NBN to all Australians as soon as possible in the most cost-effective way with an upgrade path to meet future demand. A faster rollout of the network leads to earlier activations and revenue opportunity."

"A full Fibre-to-the-Premises rollout will take significantly longer to complete than the Multi-Technology approach. This means delayed revenue opportunity and an inability to take advantage of a ubiquitous network in the next four years."

This post originally appeared on Gizmodo Australia


Comments

    In other news Nbn Co announced that up is down, black is white and short is long.

    Why do we care about the words of a company that has been shown, time and again, to be spouting a political line that flies in the face of reality?

    its a well known fact that even the planned FTTP is rubbish compared to large swarths of the rest of the planet so how exactly is rolling out an even worse version slightly faster and then going back through later and replacing it all anyway better

    Rubbish compared to 1Gbps it may be, but FTTP is a dream come true compared to what we've had for the last decade. I started on a 50/25 plan, not expecting much.. and then when I got the full speeds, I immediately upgraded my plan to 100/40. 12MBytes/sec down, 4.5MBytes/sec up.. lovely. If I had FTTN, I'd not be ready to splash the cash out so quickly for an upgrade as I was with FTTP.

    So...while the NBN have been sitting on their hands and the LNP have had their fun with the political football (wasn't it 3 or 4 inquiries?), Uncle Rupert and Telstra have had time to get their act together to make sure they have fingers in all the pies and money in their pockets.

    Meanwhile the Australian public have been sold a lemon of network (crappy copper and HFC in need of an upgrade) with the promise of a faster roll-out... two years ago my area dropped off the "planning" map and hasn't reappeared yet.

    Faster rollout? Surely the speed of a rollout is a factor of manpower; more people = faster roll-out. The mining boom is tailing off - lots of people looking for jobs digging holes, lots of people who don't mind travelling to remote locations to work, lots of people off the unemployment line...but manpoiwer costs money NOW, from the budget NOW.

    One of the main reasons that the LNP don't want to do the FTTP is the initial cost. They know that whoever stumps up money for the initial roll-out will never reap the benefits....the Australian political cycle means that every 2-3 terms a new government is formed. The new government can then flog off the asset the previous one has paid for and for a short term the budget looks amazing.
    Howard did it with Telstra. The current mob are doing it with "asset recycling" (selling off assets paid for by the tax payer for short term gain).

    NBN CO: "hur dur money, hur dur profits, huehuehue fiber is Illuminati"

    Woah, I didn't realise people were still pretending the NBN was a real thing that was happening.

    I may be leaning towards the NBN's view on this. The impact on overall economic activity of a fast-rollout / slower speed network compared to a slow-rollout but faster speed network does need to be considered.

    If it really is about the rollout speed, it would appear better to me to get 100% connected to FTTN, (with a future upgrade path to FTTP), than say 50% of the country on FTTP, but still have the rest on slower connections.

    Last edited 06/01/16 1:16 pm

      You ignore the reality that some percentage (up to 25% maybe) will receive a connection that will fare no better than their current ADSL2+ is theoretically capable of achieving. You also ignore that most of the 'saved time' has now been lost in the renegotions with Telstra. We could be at 2.5 million homes passed with FTTP by now, if they hadn't cancelled a bunch of contracts.

    NBN Co. fucking itself in the ass, is my top priority.

    The whole thing is a mismanaged mess. How many years has it been? Why are entire regional cities of 80K+ population on indefinite hold??

    As somebody who runs a business from home and is awaiting NBN in any form, it turns out the rollout map for my area is woefully inaccurate. It states march 2016 as the rollout date. The technician who rolls out the fibre in my part of the state is a friend and has stated that our town alone is 6 months behind. This is from the guy who splices the fiber together. Not looking good for the above statement NBN co.

    I liken this to if they were building a railway from Melbourne to sydney, getting the track half way there and saying " Sod it, they can just use a horse and cart from here on.It's too bloody costly"

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