Showing posts with label Greenfields. Show all posts
Showing posts with label Greenfields. 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:
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.
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.
Fibre deployment bill to mandate all new developments to be fibre enabled
0 comments Posted Friday, May 13, 2011Media 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:
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.
The government has released the submissions to government in regards to their plans to mandate FTTH in greenfields.
You can find all the submissions here.
You can find all the submissions here.
The Urban Development Institute of Australia has made a submission to the Federal Government on plans to mandate FTTH in greenfield developments.
However I am note too sure if this position is supported by a majority of developers, because the feedback I am getting is that developers are begining to understand the benefits of FTTH infrastructure and how important it is in a package of tools used to market their properties.
Ry Crozier of iTNews writes about the UDIA submission to government and their request to delay the mandate until the following year.
The institute, which represents housing developers, warned the Government that its rush to mandate fibre-to-the-premises in new housing estates could impact developer cashflows and derail what would have been viable projects. However what should be pointed out is that with the mandation of FTTH the cost of such deployments are likely to come down as scalability increases and some of the providers already work closely with developers on management of their cashflow.
"Decisions in relation to the provision of FTTP are usually made a number of years in advance of subdivision work and are based upon cost calculations that are made as part of a commercial assessment of the development," it said in a submission to the Department of Broadband, Communications and the Digital Economy. However many of the projects Opticomm have taken on have frequently occurred late in the development cycle of a project.
While the UDIA is keen to see the roll out of optical fibre in Greenfields at an early stage, it perceives a number of issues in the number of skilled operators
available to put in place the facilities, undertake the necessary planning, and put in place the appropriate governmental mechanisms at the various levels of government.
In general the submission by the UDIA was exceptionlly well balanced considering the cost increase the developer and ultimately the land purchaser will have to bear.
However I am note too sure if this position is supported by a majority of developers, because the feedback I am getting is that developers are begining to understand the benefits of FTTH infrastructure and how important it is in a package of tools used to market their properties.
Ry Crozier of iTNews writes about the UDIA submission to government and their request to delay the mandate until the following year.
The institute, which represents housing developers, warned the Government that its rush to mandate fibre-to-the-premises in new housing estates could impact developer cashflows and derail what would have been viable projects. However what should be pointed out is that with the mandation of FTTH the cost of such deployments are likely to come down as scalability increases and some of the providers already work closely with developers on management of their cashflow.
"Decisions in relation to the provision of FTTP are usually made a number of years in advance of subdivision work and are based upon cost calculations that are made as part of a commercial assessment of the development," it said in a submission to the Department of Broadband, Communications and the Digital Economy. However many of the projects Opticomm have taken on have frequently occurred late in the development cycle of a project.
While the UDIA is keen to see the roll out of optical fibre in Greenfields at an early stage, it perceives a number of issues in the number of skilled operators
available to put in place the facilities, undertake the necessary planning, and put in place the appropriate governmental mechanisms at the various levels of government.
In general the submission by the UDIA was exceptionlly well balanced considering the cost increase the developer and ultimately the land purchaser will have to bear.
Media Release: 29th May 2009
The Rudd Government is paving the way for new housing and business estates to receive super-fast broadband from mid-2010.
“The Government wants to ensure that more new property estates are serviced by super-fast broadband,” the Minister for Broadband, Communications and the Digital Economy, Senator Stephen Conroy said.
“Super-fast broadband will revolutionise the way we do business and live our lives. It makes sense that our latest property developments are equipped with the latest broadband technology.”
“Forward-thinking property developers are already moving to provide the very latest technology and avoid costly retro-fitting as fibre broadband becomes the standard.”
“We want to engage with the industry and stakeholders in an open consultation on the best ways to address greenfield broadband rollouts.”
The Rudd Government has opened a consultation on proposals to ensure that FTTP (Fibre-to-the-Premises) technology is installed in all new substantial greenfield property developments from 1 July 2010.
The commitment to FTTP in new greenfield estates was announced in April as part of the National Broadband Network. FTTP delivers broadband services with speeds up to 100 megabits per second - 100 times faster than those currently used by many households and businesses.
“There is evidence that the installation of Fibre-to-the-Premises technology increases the value of homes in greenfield estates. In the US, a Fibre-to-the-Home Council survey found that a direct fibre connection adds more than US$5000 to the value of a home.”
“It is counter-productive to have our newest homes and businesses not using the most advanced broadband technology. This practice will lead to higher costs when copper wires need to be replaced by fibre.”
A number of local governments around Australia are already using their planning powers to encourage the rollout of FTTP in new greenfield estates. The Rudd Government wants to support these initiatives and make sure this best practice approach is replicated nationwide.
The Government is seeking feedback from stakeholders on its proposed approach to this issue by 12 June 2009. A consultation paper is available online: www.dbcde.gov.au/nationalbroadbandnetwork
The Rudd Government is paving the way for new housing and business estates to receive super-fast broadband from mid-2010.
“The Government wants to ensure that more new property estates are serviced by super-fast broadband,” the Minister for Broadband, Communications and the Digital Economy, Senator Stephen Conroy said.
“Super-fast broadband will revolutionise the way we do business and live our lives. It makes sense that our latest property developments are equipped with the latest broadband technology.”
“Forward-thinking property developers are already moving to provide the very latest technology and avoid costly retro-fitting as fibre broadband becomes the standard.”
“We want to engage with the industry and stakeholders in an open consultation on the best ways to address greenfield broadband rollouts.”
The Rudd Government has opened a consultation on proposals to ensure that FTTP (Fibre-to-the-Premises) technology is installed in all new substantial greenfield property developments from 1 July 2010.
The commitment to FTTP in new greenfield estates was announced in April as part of the National Broadband Network. FTTP delivers broadband services with speeds up to 100 megabits per second - 100 times faster than those currently used by many households and businesses.
“There is evidence that the installation of Fibre-to-the-Premises technology increases the value of homes in greenfield estates. In the US, a Fibre-to-the-Home Council survey found that a direct fibre connection adds more than US$5000 to the value of a home.”
“It is counter-productive to have our newest homes and businesses not using the most advanced broadband technology. This practice will lead to higher costs when copper wires need to be replaced by fibre.”
A number of local governments around Australia are already using their planning powers to encourage the rollout of FTTP in new greenfield estates. The Rudd Government wants to support these initiatives and make sure this best practice approach is replicated nationwide.
The Government is seeking feedback from stakeholders on its proposed approach to this issue by 12 June 2009. A consultation paper is available online: www.dbcde.gov.au/nationalbroadbandnetwork
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