NBN’s numbers and metrics are indicators of current goals achieved, revenue, ready connections created, and different aspects of performance and quality. They play a crucial role in determining the NBN Co.’s next goals, changes to be done, decisions – on corporate and technical levels.
Other statistical information shows how close certain guidelines, policies, imperatives, and any new changes are followed. NBN Co. follows global quality standards when it comes to all operational factors including the running of the company itself.
New metrics and goals are set every year, based on previous goals and new changes. The other data also indicates movements and results from old and new from last year’s Annual Report. All these show us an in-depth look overview of how the company operates and upholds standards and policies to maintain global level performance.
Results: Annual Report 2017
Where the NBN Co. is currently at can be seen on their Annual Report. The latest for 2017 is available for public view at their website. It has reports on other operational factors and thorough data presentations. This is a public press release that aims to be as transparent as possible, as the company is a wholly government operated enterprise.
The roll out campaign and its results have now reached more than half of Australia’s premises. The other numbers presented here have become levels of achievement and performance. In some cases numbers went beyond previous set ones from yearly increasing goals:
The company remains on track with a 97% growth rate when they achieved 5.7 Million RFS (ready for service) status premises from 2.9 Million the previous year
Activations from the market are at 122% hitting 2.4 Million from 1.1 Million previous
Revenue generation is at a total of $1 Billion, marking 138% growth from 0 .4 Billion
ARPU (Average Revenue per User) stays at a constant $43
Employee Engagement further improved 70% from 68%
NBN Formats and performance
We have five main NBN formats available in the market. There are two types: Fixed Line and Wireless NBN; the former is mostly in major urban areas where fibre can be easier to process, while the latter is mostly in rural and regional areas where other methods (Satellite and wireless towers) are employed to deliver the service.
From here we can determine each format’s current market share, and how many premises belong outside the major cities (for wireless NBN formats), or at least how far into the roll out :
Fibre-to-the-Premises (FTTP) – 1.5 Million connections from 1.0 Million of previous
Fibre-to-the Node/Basement/Curb (FTTN) – 2.5 Million from 0.9 Million
Hybrid Fibre Coaxial (HFC) – 0.8 Million from 0.2 Million
Fixed Wireless – 0.5 Million from 0.2 Million
Sky MusterTM satellite – 0.4 Million from 0.1 Million
Huge increase is seen in FTTN, HFC, FTTP, rural and regional NBN formats (Fixed Wireless and Satellite) from highest to lowest ranking. Each NBN format has its own properties, area delegation, and process. These all give us a look on what the market is like broken down, and how each format is performing along with these inherent features.
FTTP as the ideal fibre connection holds a huge number despite being outnumbered by FTTN, which is more common due to the sheer size of available copper networks in many old and new premises. Many premises have since used the once misunderstood format, which has been augmented with XG.Fast technology and optimisation methods to level the speed and performance with pure fibre connections. FTTP can still be accessed with the Technology Choice Program if not available, although with extra costs and labor involved.
Wireless formats show numbers that confirm more availability in the rural and regional areas. They also show huge advances in number of connections created. This is major in part due to improved wireless tower facilities and two operational satellites. These numbers are also indicative of the world class praise for Wireless and Satellite NBN according to UK research firm Ovum.
Other data presented shows other elements of performance and operation of the whole NBN company. This includes internal processes, administration, revenue, management, employers, retail work, policies, guidelines, industry connections, media and other functions and departments.
Running the NBN Co.
As a wholesale company operated by the government, NBN Co. has to uphold many global standards and practices. They are the frontline source of the NBN as a service and product. Everything starts with them. The NBN will be sourced by retail nbn service providers from them with no issues on equipment, connections, services, and network.
Two of the most important aspects of NBN performance rely on its operations, and the handling and management of finance and revenue. Some of the data presented are numerical data, such as totals and revenue generated. Others are achievements in action and standards that are crucial to the roll out and NBN distribution.
Operations cover all systems and management that goes into the company. This includes carrying out of all tasks and departments involved in the roll out and NBN wholesale activities. Major achievements point to total connected premises, as well as internal operation standards and performance:
The service footprint went from 2.9 million to 5.7 million premises
5.7 Million total of premises RFS is broken down into the market shares per NBN format:
Fixed Wireless: 517,543
10.8 Million premises are currently in design, or already designed (in process)
6.3 Million premises currently in construction, or already constructed (on its way to completion)
Employee engagement sprung up to 70% currently the highest point, relating to security and work satisfaction with a total of 5,965 employees as of 30 June 2017 (2016: 4,913). In addition to these are employee care programs in order to maintain high level of health and performance:
Employee assistance program
Emergency notification system
Travel safe program
HSE in commercial governance forums
Centralised monitoring for security and emergency response
Team movement challenge
HSE risk workshops
Mental health training
Heart health checks
Among other facets of employment with the company is in its openness with Diversity and Inclusion, which aims to promote unity of those who belong to different genders, those with disability, those of various cultures and identities, and those who belong to Aboriginal and Torres Strait Islanders.
Among the governance practices they base the company on are from Government, regulatory, and legislative, requirements, and general market practice to ensure a complete and well-rounded organisation:
National Broadband Network Companies Act 2011;
PGPA Act and Public Governance, Performance and Accountability Rule 2014 (PGPA Rule 2014);
Corporations Act 2001;
Telecommunications Act 1997;
Competition and Consumer Act 2010;
Commonwealth Government Business Enterprise Governance and Oversight Guidelines (August 2015) (GBE guidelines);
Other resource management guides issued by the Department of Finance that are applicable to NBN;
NBN’s voluntary adoption of those ASX Corporate Governance Principles and Recommendations (the 3rd Edition) which are relevant to NBN.
In addition, the Remuneration and talent governance at NBN Co. are two other aspects that put recognition for staff and employees who contribute to the company. It remains performance based and is reviewed annually as well, in accordance with the business strategy and corporate objectives.
Advice input also comes from Ernst & Young (EY) to be in line with market practices. It is applicable to the levels from the Senior Executives to regular employees.
Senior Executives are rewarded in two ways: by using STI or the Short Term Incentive program, and the Total Fixed Renumeration per annual review and results.
Work safety and regulations continued with improvement, with latest tally numbers indicating the same improvements: total recordable injury frequency rate (TRIFR) for employees and contractors is down from low 3.8 to lower 2.8 per instance, and HSE (Health, Safety, and Environment) incidents down to 3.7 to 1.7 per incident.
Risk Management is reviewed bi-annually by the management, with the Audit and Risk Committee, and the Board. It is confirmed to always meet the international standard for risk management: ‘AS/NZS ISO 31000:2009 Risk Management – Principles and Guidelines on Implementation’.
Key elements of Risk are:
Health, safety and environment
Critical process and system capacity
Security of critical assets and information
Business resilience to adverse events
Management of Delivery Partners * Regulatory environment
Market and technology disruption
Operating model transition and , optimization
The yearly review inclusion of risk management shows the company’s readiness for emergency situations that would mainly affect their retailers and respective subscribers, in cases of continuity of operations, power sources, NBN outages, work conditions, distribution, business health, and security within the main offices.
Finance and Revenue
Finance, budget and revenue management assures that operations and funding are managed appropriately, in order to generate sufficient revenue for its maintenance, as well as to properly budget all departments and company projects.
Revenue total is from $421 million in Fiscal Year 2016 to more than $1.0 billion in FY2017
Capital funding expenditure mainly budgeting the NBN expansion is at $5.8 Billion
Total expenditure is at $5.29 Billion, with the budget breakdown going to the following expenses:
Direct network costs: $537 Million
Employee benefits expenses: $751 Million
Outsourced and corporate services: $177 Million
IT and software expenses: $125 Million
Communication and public information: $79 Million
Operating expenses: $1.827 Billion
Other operating expenses: $158 Million
Subscriber costs: $1.573 Billion
Depreciation and amortisation expense: $1.488 Billion
Finance charges – leased assets: $402 Million
Future Performance Goals
By setting goals and new metrics to reach for, the NBN Co. makes sure overall performance and goal achievement either stays on high level or are surpassed. All these are accordingly from NBN set standards and policies by government and higher executives and administration.
The next goalpost timeline is set for 2020, with the following major goals set. By then:
8 Million homes and businesses connected
11.6 Million premises footprint
Generate $5 Billion revenue to meet financial demands and operational expenses
These goals are driven by the same imperatives that allow metrics and numbers to increase and also be achieved per year:
Provide a high – performing and reliable network
Effective and efficient processes and systems
United partnership with vendors, Delivery Partners and Retail Service Providers
Affordable products and services
Be a great place to work
Today the NBN means much more than the fastest and most reliable broadband service for Australia. It is the main backbone for many industries and fields that have been put at the forefront. The NBN duly goes along with the advancement of telecommunications, online entertainment, online business, and modern life in general.
The following main fields are expected to work closely with the NBN as the future of its roll out draws near to 2020 and beyond that:
Social inclusion: the wider coverage area of the NBN in particular to rural, regional, and remote areas has brought many advancements to telecommunications, online business, health, education, and access to data. It has made Australia more decentralised and has also provided previously unavailable services to the populations in these areas in addition to other areas previously untouched in the major cities.
Education: The rise of distance education is one of the effects of the NBN roll out up to 2017: 8,000 schools and preschools are now online, and 620 homes learning through School of the Air. Education no longer has to be the traditional set-up, and today more people are able to have quality education no matter where they are, what time constraints they have, and what age group or demographic they belong.
E-Health: the advanced connectivity and speed has allowed medical and health devices optimal performance and reliability. This includes notification, health alarms, medical communication channels and others. Telehealth services are now more available, and home based care and consultation has become welcome changes in the medical and care industries.
Agriculture / Regional and rural industries: modernisation of farming, agriculture, aquaculture, livestock, and other rural livelihoods are major movements. Local small industries in these areas are in tune with technology, creating better business, products and services across Australia.
E-Commerce: online based businesses as both buyers, sellers, entrepreneurs, part time employment, big businesses, and all other participants are a direct result of the nationwide NBN roll out. The major upswing continues, as 94% of households post direct participation in E-commerce, most of them as popular online shopping, among others.
Home based work: It uses the same level of convenience and control as online entertainment and distance education, not to mention the amount of control and ability with time schedules. 400,000 Australians work at home and is expected to double by 2025. There are also about 70 per cent of rural and regional premises that now work from home.