NBN update: more fibre + better pricing will lead to higher speeds

NBN faces a 30% churn risk to 5G and fixed wireless despite reaching 7.5 million premises ready for service.

Vinay Chhoda · Venture Insights1 May 2018Period: HY186 min read

Last updated 10 June 2026

$891 million↑

NBN Revenue (HY18)

33%↑

End users on 50Mbps or higher speed plans (March 2018)

Locked

+1more stats

Companies covered:NBNTelstraOptusAT&TChina TelecomBritish TelecomVerizonSparkChorus

Abstract

This report analyses the NBN's progress as of May 2018, highlighting that over 7.5 million premises are now ready for service, representing more than two-thirds of the targeted rollout. While revenue more than doubled year-on-year to $891 million in 1HY18, the network faces significant headwinds from rising customer complaints, HFC rollout delays, and the emerging threat of 5G and fixed wireless substitutes. The analysis explores how new wholesale pricing structures are driving a shift toward higher speed tiers, with 33% of users now on 50Mbps plans or higher.

Key Takeaways

NBN has completed over 66% of its rollout with 7.5 million premises ready for service as of April 2018.
Revenue more than doubled to $891 million in HY18, supported by a 105% surge in active retail connections to 3.4 million.
Adoption of 50Mbps+ plans reached 33% in March 2018, nearly doubling in three months due to wholesale pricing discounts.

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Frequently Asked Questions

The NBN has reached 7.5 million premises, representing over two-thirds of the total rollout target. However, significant HFC delays have caused a fourfold increase in 'Service Class Zero' premises, placing the final completion timeline at risk.

Adoption of high-speed services is accelerating, with 33% of end users on 50Mbps plans or higher as of March 2018. This is a near-doubling of penetration compared to the 17% recorded in December 2017.

Fixed wireless and 5G represent a critical threat to the NBN's long-term viability. Recent survey data confirms that 30% of current fixed broadband customers are at risk of migrating to wireless substitutes.

Revenue for the first half of 2018 reached $891 million, more than doubling year-on-year. Despite this growth, average ARPU remains constrained at $44 while the network manages over 27,000 annual consumer complaints.

NBN update: more fibre + better pricing will lead to higher speeds

Abstract

Key Takeaways

Frequently Asked Questions

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