Question 1

Is the network rollout falling behind schedule?

Accepted Answer

Deployment has slowed significantly, with 1.3 million fewer premises ready to connect than originally forecast. This delay resulted in a shortfall of 400,000 activations in FY18, though the company still aims to reach 7.5 million active premises by June 2020.

Question 2

How is the project's financial performance tracking against expectations?

Accepted Answer

Revenue for FY18 reached $1.9 billion, missing the $2.0 billion forecast established in the previous corporate plan. Total peak funding has now hit $51 billion, leaving a narrow $1 billion contingency to manage ongoing infrastructure and pricing volatility.

Question 3

Are users actually adopting higher-speed services?

Accepted Answer

There is a measurable shift toward higher-tier plans, with 45% of the subscriber base on 50 Mbps or higher services as of June 2018. However, persistent service issues remain a hurdle, as evidenced by 27,195 consumer complaints recorded in 2017.

Question 4

What is the primary risk to the current business model?

Accepted Answer

The threat of 5G fixed wireless substitution has reached 15%, matching the original business case's critical threshold for competition. This risk is exacerbated by rising infrastructure costs, with the cost per premise for fixed wireless climbing to $3,757.

nbn Corporate Plan 2019 – challenging times ahead

Abstract

Key Takeaways

Frequently Asked Questions

Unlock the full report

Free

Lite

Team