nbn™ network to reach 9 million homes by 2018

Comprehensive Corporate Plan details three year targets

• 9.1 million homes and businesses ready for service by 2018
• 4.4 million activations
• $1.7 billion in annual revenue for FY18
• Construction set to be complete in Tasmania and Northern Territory

More than nine million homes and businesses across Australia are expected to be ready to connect to the nbn™ network and more than four million to have signed up for an nbn™ service by 2018.

The forecasts are contained in the company’s first comprehensive Corporate Plan, which was published today.

The introduction of additional technologies, a projected boost to the size of the construction workforce and newly-signed agreements with the construction industry are anticipated to see the total number of premises that are able to connect double over each of the next three years to 9.1 million.

At the end of the period, 4.4 million families and business owners are expected to be active on the network, an eight-fold increase on today. These users are expected to deliver a ten-fold increase in revenue to $1.7 billion.

nbn CEO Bill Morrow said:

“This is a bold plan that puts us in striking distance of our ultimate goal of delivering better broadband to every Australian by 2020.

“The steps we have taken over the past 12 months have already delivered increases in revenue, activations and serviceable premises. The work to date has also given us a more accurate picture of the actual costs of the build.

“This enables us to set the course for the move to the exponential growth of the rollout.”

nbn’s revenue targets are underscored by growing data and usage patterns. According to the Australian Bureau of Statistics, the average amount of data downloaded per month continues to grow: from 5GB per month in FY08 to nearly 60GB today.¹ Globally, video traffic online is expected to triple by 2019², with applications extending beyond entertainment to education, e-health and video conferencing for business.

Bridging Australia’s Digital Divide

Mr Morrow said the Corporate Plan estimates an increase in peak funding for the build. However the amount remains significantly lower than the total cost of an all-fibre optic network and the equity contribution of the Government remains capped.

“Upgrading the telecommunications infrastructure for an entire continent will always be an ambitious undertaking. But the risks are outweighed by the benefits,” Mr Morrow said.

“For instance, the rollout is expected to be complete in the Northern Territory and Tasmania during the period of this Corporate Plan. The nbn™ network will be a game changer for these economies and Australia as a whole, enabling greater participation in the global digital economy and helping close the digital divide.”

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Notes to editors

• Full copy of the 2016 Corporate Plan available online
• The Corporate Plan outlines core risks facing Australia's largest infrastructure project, including mitigation strategies in line with the company’s risk management strategy and framework. The scale and complexity of the project is well known yet the company has in place the expected preparedness to identify and manage risks.

¹ABS Internet Activity survey (8153)

²CISCO VNI Report 2015