Showing posts with label Developers. Show all posts
Showing posts with label Developers. Show all posts

According to an article by James Hutchinson from ITnews, NBN Co will start to trial deployment of services to new housing estates from August 8 this year. Interesting use of the term trial, because I am sure the developers are expecting full services to be available from NBN Co, at least that is what I have heard from developers.

I have also been reliably informed that at the recently access providers meeting with NBNco, they have been told telephone services for these new sites will not be available as yet with no specific date given for when telephone services will be made available. Its going to be interesting for all those wanting alarm services or medical monitoring. 

The Fibre Deployment Bill being introduced by the Federal Government could cost new home purchasers aware between $1500 - $3000. The Bill which is being reviewed by the Joint Committee on the National Broadband Network will force all new developments (larger than 100 homes) to ensure the telecommunications infrastructure deployed is fibre based - and with the legislation which was passed in March - Open Access, Wholesale only.
So what does this mean for developers? Well it means at least an additional cost of $1000-$3000 per lot to deploy infrastructure which previously they did not need to pay for. While some developers did choose to deploy fibre networks (at their own cost) as a marketing advantage, the majority remained with deploying the free Telstra copper network.

But this legislation also means developers have a far smaller choice in telecommunication providers to be able to deploy their network. Previously developers could go to any carrier to have their network built (although most went to Telstra), but now with the new amendments already passed by Parliament in late March, residential networks must be built using an "open access, wholesale only" business model. This means Telstra, Pivit, BES, FuzeConnnect, Clubcom, TransACT, HaleNet, Broadband Multinet, and Geomedia Broadband - all who had previously built FTTH networks in residential estates - are now effectively outlawed from building new networks while they remain vertically integrated.

Now there are only a handful of carriers who are open access, wholesale only - namely Opticomm, Openetworks, Comverge and of course NBNco - which reduces competition (a benefit only for NBNco) and thus limits diversity in the market place. Consider what Carly Fiorina had to say about diversity when she was running HP:

"The value proposition for diversity is very clear:
  • Diversity drives creativity.
  • Creativity drives invention.
  • Invention drives profitability and business success."

More significant however is the government is FORCING a cost impost on developers at a time when they can least afford to do so. It also creates more red tape to have their development approved which will only result in higher prices for land purchasers.

While the government may say by dealing with NBNco its only to be the cost of the Pit and Pipe infrastructure, it is actually much more than this. Firstly if a developer deals with NBNco the pit and pipe must be designed to NBNco standards (which is not the case if dealing with other providers); secondly it introduces a substantial project management overhead; and thirdly it lengthens the duration it takes to construct each stage of an estate due to NBNco's bureaucratic processes. These all add to a higher cost of construction and longer borrowings on their money for which the developer will want to place a margin on, thus pushing the costs of each new block of land up by about $1500 - $3000. All this at a time when developers are struggle for funding, having difficulty in some states with volume of land sales and when Australia's housing affordability is at an all time low.

Media Release: The Joint Committee on the National Broadband Network will inquire into the Telecommunications Legislation Amendment (Fibre Deployment) Bill 2011. The Bill will amend the Telecommunications Act 1997 (Cwlth) to ensure the installation of infrastructure for fibre to the premises as part of the rollout of the National Broadband Network (NBN) and enable NBN Co. to be the fibre provider of last resort in new developments, including broad acre estates, urban infill and urban renewal projects within its fibre footprint. This will provide developers with the option to use NBN Co. to install fibre infrastructure for new developments.
http://www.aph.gov.au/house/committee/jcnbn/docs/tlafdbill.pdf

http://www.aph.gov.au/house/committee/jcnbn/bill/media/media01.pdf

Other provisions of the Bill include:
  • Enabling Telstra to have a transitional role for providing services for infill developments of less than 100 premises that do not yet have fibre.
  • Giving developers the option to use telecommunications providers other than Telstra for installing services for infill developments of less than 100 premises that do not yet have fibre.
  • Putting in place the optical fibre line requirement to ensure that fibre is provided for new developments in the long term if required, and the fibre-ready facility requirement to allow the ready deployment of fixed telecommunications lines to a premises.
  • Prohibiting constitutional corporations from selling or leasing land or buildings situated in new developments unless fibre-ready facilities have been installed
  • Attaching penalties to the sale or lease of land or buildings where fibre-ready facilities have not been installed.
  • Exclusion from the fibre ready facility and fibre-ready installation requirements of new developments where urban utilities are not installed (are outside the fibre footprint).
  • Ministerial authority to exempt by legislative instrument, projects, individual lots, units or conduct otherwise subject to the provisions of the Bill.
  • A regime for carriers to secure access to fixed-line facilities which are owned by non-carriers, to ensure the fibre rollout using these facilities.
  • Empowering the Australian Competition and Consumer Commission to be the default arbitrator for the access regime for carriers including setting the code of conditions for and determining the feasibility of third party access to the regime.
  • Empowering the Australian Communications and Media Authority to make technical standards for customer premises equipment and cabling for use with the NBN and other superfast telecommunications networks.
Submissions to the inquiry are invited and should reach the Secretariat no later than 20 May 2011. The Bill and its Explanatory Memorandum are available on the committee’s website at: www.aph.gov.au/jcnbn/telbill

As part of the Government's announcement on the National Broadband Network, developers will be mandated to reticulate all greenfield estates with Fibre to the Home from 2010.

The Government has released a consultantion paper on the NBN and there is a specific section on Greenfield developments. The Government understands Fibre to the Home is the superior fixed line technology that will best position Australian consumers and businesses to take advantage of the growth in the digital economy. Senator Conroy last year said at the FTTH SIG working group "if I can mandate FTTH in greenfields, then I will".

The paper goes on to further say "Given the superior properties of fibre optic networks, it would be counter-productiv to have homes built in new developments with the latest building technology but connected by antiquated copper wires. Indeed, allowing copper connections to take place will lead to higher costs in the long run if these estates need to be ‘retro-fitted’ to deploy fibre optic connections in the future."

So to ensure that all developers install networks for the future using fibre optic
technology, the Government will mandate the use of fibre optic infrastructure to the
home and workplace in greenfield estates across Australia that are approved after
1 July 2010.

Reading the detail of the report, rollout of FTTH into greenfield estates will not be undertaken by the Government owned NBN company, but the industry. It would also be reasonable to assume any greenfield rollout will need to be consistant with the NBN regulation if not in technology, then structure so that means an "open access, wholesale only network". Currently in Australia today only OptiComm delivers a "true open access" network that meets all the requirements annouced so far by the Government.

So for those developers who have not got into FTTH so far, start changing your strategies to line up with the Government's planning approvals where telecommunications will become a key peice of infrastructure. It may also be time to speak to a good network operator, OptiComm being one.

Since starting this web site 10 months ago, a growing a problem some visitors have reported is the amount of information it contains. At the moment about five new articles per week and one white paper per month is added to this site.

In an attempt to provide some level of focus, a new section has been added which provides white papers and articles that are relevant to Land Developers, making it easier for you to find information which is pertinent to your needs. By selecting the "Developer" tab found at the top of this page you will be taken directly to the section which publishes all documents and articles as papers for you to download and keep locally.

Three documents are posted to this page so far, and more will be added in the very near future.

The intent of this page is to be THE source of information about Fibre to the Home for Land Developers in Australia and New Zealand; providing opinion on subjects such as business models, regulation, services, technology, and lots more.



Introduction to Fibre to the Home (FTTH)

Author: Stephen Davies (stephend@qwestcom.com.au)
Published: July, 2007. Revision: 1

Never heard of Fibre to the Home, or dont understand the technology. This presentation helps to explain what is Fibre to the Home and the different technologies that can be deployed.

Power Point Presentation





Issues for developers considering FTTP

Author: Stephen Davies (stephend@qwestcom.com.au)
Published: August, 2008. Revision: 1

This document looks at some of the issues associated with creating a smart community in Australia

White Paper





Creating a Smart Community

Author: Stephen Davies (stephend@qwestcom.com.au)
Published: Oct, 2007. Revision: 1

Looking at how to make the most of your new estate? Have you considered deploying Fibre to the Home? This is an important document to read.

Power Point Presentation



White Paper






FTTH Business Models

Author: Stephen Davies (stephend@qwestcom.com.au)
Published: Oct, 2007. Revision: 1

Coming Soon.









Questions your should ask your FTTH Provider

Author: Stephen Davies (stephend@qwestcom.com.au)
Published: Oct, 2007. Revision: 1

Today more and more developers are becoming interested in turning their estate into an Intelligent Community by installing Fibre to the Home. With this interest Australia has also seen a growing list of new service providers offering to build those networks for the developers. While this can be seen as a good thing, if you are a developer it has become increasingly more difficult to make the right choice which ultimately will cost you several million dollars. This document provides you 15 questions you should ask your service provider about their FTTH service offering.

White Paper






The Maturing Australian Fibre to the Home industry

Author: Stephen Davies (stephend@qwestcom.com.au)
Published: Oct, 2007. Revision: 1

Whatever you want to call it more optical fibre is being deployed in telecommunications networks today than at any other point of time. fibre is critical for the development of our 21st century economic needs. Fibre to the Home is being described as important a the road, railways and airports wereh in the previous centuries. This document provides an insight into the emerging Australian FTTH market and the players involved.

White Paper