NBN hiccups delay WA rollout
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Construction delays and a review of the NBN have resulted in areas promised access being left in the dark.
Changes to the National Broadband Network have dramatically reduced the number of areas able to connect to the NBN, compared with initial plans.
Analysis by Business News shows only four Perth suburbs (termed ‘fibre-serving areas’ by NBN Co) are currently able to connect to the network via fibre optic cable.
That’s well short of the 25 Perth suburbs NBN Co targeted in May 2012 to be connected and ready for service by the end of 2014, in a more bullish era under the Labor government.
Suburbs currently connected to the NBN are Ardross, Kensington, Victoria Park and East Victoria Park in Perth as well as selected suburbs in Mandurah and Geraldton.
Fibre optic cable is also being rolled out in Applecross, Brentwood, Burswood, Mount Pleasant, Rivervale and St James in Perth.
Theoretically, business and households in those areas should have access to the NBN in less than 12 months.
However, other suburbs listed by NBN Co as next in line for fibre construction in 2012 have fallen off the map as a result of the change in federal government and change of construction contracts in Western Australia.
These areas include Bateman, Bull Creek, Karawara, Leeming, Manning, Murdoch, North Lake, Salter Point, Waterford and Winthrop, all of which were expected to have the final phase of construction under way by the end of 2013.
However, at the time of writing, none of those areas was reported as being subject to any planning or preparation for NBN construction – meaning access to the network is at least 18 months away.
Much of the blame for the delay has been directed at former construction contractor Syntheo, a joint venture between Lend Lease and Service Stream, which agreed to bow out of construction in WA in August last year.
It followed NBN Co taking back responsibility for constructing the network in the Northern Territory from Syntheo when it was revealed the constructor was unable to deliver fibre as per NBN Co timeframes.
The company completed the construction work it was contracted to do in WA, with Downer Group and WBHO Civil taking over construction this year.
NBN Co was forced to revise down its nationwide target for the rollout at the end of the 2012-13 financial year.
It had initially targeted laying fibre past 286,000 premises. That was revised down to between 190,000 and 200,000 premises by the end of June 2013. (It achieved 207,543.)
As of last week, NBN fibre had been laid past 558,006 premises Australia wide.
Premises in WA accounted for 9.7 per cent of that total.
The number of premises in WA that are actually able to connect to the NBN was 26,715 at October 23, 31 per cent of which had connected to the network.
NBN Co told Business News it operated on an 18-month timeframe for connecting its target of 70 per cent of premises within an area to the network.
It also said decisions were expected in the next few months as to the mix of technologies that would be utilised for the remaining construction – current construction is providing optical fibre direct to premises.
However, the coalition victory at last September’s federal election led to a strategic review of the NBN strategy.
The Abbott government is now proceeding with a mix of fibre to buildings and locations called ‘nodes’, using Telstra’s existing copper cables for part of the process.
“The move to multi-technology mix will escalate the rollout and make it easier for residents and businesses to connect to the NBN,” an NBN Co spokesperson told Business News.
During NBN Co’s first quarter results presentation last week, chief customer officer John Simon said there was no concern about demand for access.
“We are confident with the take-up … at this point we have no reason to believe that there’s any concerns around the demand for the service. It’s definitely there,” he said.