April 2016 New developments industry newsletter

Message from GM of New Developments

With 2016 well underway, it’s a great time to get in touch with all our industry partners and update you on some of the progress we have been collectively making in the new developments market.

Through the rollout we have continued to see our partnerships grow with over 1,300 contracts signed this financial year, representing 178,400 lots/premises. To date we have activated over 148,800 new happy homes and businesses to the nbn™ network and 502,800 lots/premises under contract.

nbn continues to be a hot topic for media and political commentary, however I’d like to assure you that the pace of our build and activation rate is indeed accelerating and we are on track, on budget and the networks are performing according to expectations.

During March, in the total rollout, we averaged more than 30,000 homes ready for service each week. This is triple the speed of the rollout a year ago, 7 times faster than the rollout 2 years ago, and 35 times faster the rate of 2013. By the end of this year, we project that 1 in 4 homes and businesses will be able to order a service and by the end of next year, we expect this will increase to 1 in 2.

A key focus for the New Developments team has been on how we support both large and small developers, ensuring we provide early connection opportunities to those in the rollout area. The under 100 lot market continues to grow, providing opportunities for both nbn and developers to connect new homes even if we are not the Infrastructure Provider of Last Resort (IPLOR). New developments located outside areas where the nbn™ network is currently announced or ready for service still have the potential to connect, but we need an application to be assessed – more on this below.

We were also thrilled to be a part of this year’s UDIA National Congress in March, sponsoring the event. It was great to see so many of the category winners were nbn™ ready estates. I hope some of you had a chance to visit the congress this year, showcasing some of the best in the industry and taking in all that South Australia has to offer during their festival season.

I hope you enjoy this update from the team and I look forward to continuing our work together throughout 2016.

Sam Dawe
Acting General Manager, New Developments

nbn as the Infrastructure Provider of Last Resort - what does it mean for you?

Under the Telecommunications Act, developers are responsible for providing telecommunications infrastructure in their developments. To provide this infrastructure, you need to contract a carrier to install and operate a telecommunications network. The Infrastructure Provider of Last Resort (IPOLR) obligation means that, regardless of where you choose to locate your development, at least one carrier must provide a commercial offer for the installation of telecommunications infrastructure.

Developers can choose any carrier to service their development, however if they don’t or are unable to:
nbn is the provider of last resort (IPOLR) in larger developments (100 lots or more)
• Telstra is the IPOLR in smaller developments (less than 100 lots), until the nbn™ network rolls out in the area.

When nbn is the IPOLR for your development, you should be able to have the nbn™ network connected to your development - but you need to apply.

Most new home buyers will want to access phone and internet services as soon as they move into their new home. Some local governments also require developers to have telecommunications infrastructure in place as part of their planning approval processes.

To avoid delays in having your development serviced, we encourage all developers to apply to nbn as soon as possible. The first step is to visit www.nbn.com.au/newdevelopments and fill out an online application form. Our Account Management team will contact you within five working days to discuss your application.

Updated developer agreements

nbn will shortly commence issuing revised Developer Agreements to address industry feedback. The revised agreement includes provisions to provide approval for developer designs, allow for minor defects to be addressed through As-Builts, as well as the ability for nbn to request developer build works external to the development boundary where appropriate. We have also provided clearer wording around practical completion and the inclusion of branding rights as an automatic benefit once the MDA is signed.

The updates come after industry engagement to help ensure nbn provides commercial terms that suit the needs of the industry and construction cycle.

New Developer Agreements apply to all new applications received from May 2016.

Introduction of New Developments End User Charge

As outlined in the Telecommunications in New Developments Policy, nbn is required to introduce a one-time new developments charge to Retail Service Providers (RSPs) of $300 (inc GST) in respect of each new development location served by nbn. This is referred to in the Policy as the “end user contribution”, however it is a matter for RSPs whether they will pass through an equivalent charge to end-users.

Following a period of implementation, nbn commenced charging the new charge on Saturday 2 April 2016. The new developments charge will only be charged to the RSP which completes the first connect order for an nbn service for a new development location (where the order was placed on or after 2 April 2016). This includes both pre-existing (sites already under contract with nbn but yet to order a broadband service) and new sites.

Although these charges do not impact developer costs for the installation of nbn™ infrastructure, you may wish advise your residents of the potential for RSPs to levy this charge.

Builders – how to get nbn™ ready

As a builder and/or building owner, there are certain guidelines you must adhere to in order to ensure your new development is prepared correctly for the installation of nbn™ network equipment. By following the nbn guidelines, you can help ensure a smooth connection to the nbn™ network. There are a number of guides and fact sheets available to assist builders including:

  1. The Residential Preparation and Installation Guide – SDUs and MDUs
    This document assists developers, builders, and new home owners in new developments to both prepare homes correctly and arrange premises connection. The guidelines outline nbn’s minimum requirements and specifications for wiring and related infrastructure, to and within new premises.
  2. Building Design Guides - MDUs
    The building design guides outlines the provision of appropriate pathways and spaces in vertical and horizontal MDU sites for the delivery of fibre to the premises infrastructure in new developments.

nbn’s guidelines are updated from time to time, so please be sure to check the website for the most up to date versions. Check the latest nbn guidelines for new developments.

Once you have prepared the building, you can request submit a pre-installation request for nbn™ supplied equipment prior to residents moving in. This means disruptions on-site and to residents are minimised and residents can connect to the nbn™ network through a phone or internet provider as soon as they move in.

Standard pre-installations are free and work is carried out by a certified nbn communications technician once lock-up stage has been achieved. Submit a pre-installation request for nbn™ supplied equipment.

Is your new development under 100 lots? You may be eligible to connect to the nbn™ network now

nbn is able to service new developments under 100 lots, even if we are not the Infrastructure Provider of Last Resort (IPLOR).

New developments located outside areas where the nbn™ network is currently announced or ready for service still have the potential to connect to nbn’s state-of-the-art landline phone and internet network now, instead of ADSL services.

nbn will assess your new development for viability, but in many cases nbn will be able to connect your development.

Julian Nachmias, General Manager of New Developments said there are a number of benefits of incorporating nbn™ technology into the early stages of construction.

“By engaging nbn early in process developers are able to minimise disruptions onsite and potentially lower costs by installing nbn™ infrastructure when trenches are open or buildings are being constructed. It also means you will receive some of the best technology for your residents and will be able to market your development as ‘nbn™ ready’ from the very beginning”.

In order to have your new development assessed you need to apply online to nbn at least 6 months prior to when you need service. An nbn representative will contact you within five business days to discuss your application.

In some instances backhaul charges may apply in order to bring the rollout forward. Any potential costs will be outlined during your assessment, and developers are free to default to the IPOLR for the region, who may also charge.

The nbn™ network is designed to add value to developments and to help ensure its potential is unlocked by connecting to Australia’s Broadband Network. If you are building an under 100 lot development, we encourage you to fill out the pre-qualification online tool to see if you are still eligible to connect to the nbn™ network.

How connectivity is changing the way we live

How many devices do you have in your home? Between the kids’ iPads, your work laptops and everyone’s smartphones the list can seem never-ending. A new research paper predicts connected devices in the average Australian home are expected to triple by 2020.

In recent years, there has been an explosion of Internet-connected devices in the home. This is mainly due to technological advances in computing and a reduction in the size of processors, memory and network connection devices.

A research paper from Telsyte - and commissioned by nbn - titled Internet Uninterrupted: Australian Households of the Connected Future, examines how technology usage is changing and what this means for different Australian households.

The greatest surprise has not been that we have seen this increase, but rather how quickly these devices have come into the market.

The report reveals that as recently as 1996, only 31 per cent of Australian households regularly used a computer at home. Of these, only about a quarter were connected to the Internet via a modem.

In just over a decade, there was an explosion of devices connected to the Internet. So much so, that by 2009 the number of Internet-connected Australian households had more than doubled, to 72 per cent.

Fast forward to today, the average Australian household now has nine connected devices (during peak times) and this number will only increase.

The report forecasts that by 2020, the average Australian household will have 29 connected devices as Internet connectivity is built into everything in the home - from appliances and lighting to home security.

Are we ready for the future?
The higher the number of apps, devices and people connected to the Internet, the more bandwidth is required. To counter this, Australia needs to expand its Internet infrastructure to prepare for the predicted influx of connected devices.

A quick review of the current state of Australian households reveals that the existing broadband network was not designed to deal with the current or future demands placed on it, particularly as the number of devices in the home continues to grow.

The nbn™ network will make use of a range of technologies to ensure more Australians have access to an internet that is capable of handling all of their household needs.

Find out more and download the report here.

Congratulations to UDIA National Award Winners

The UDIA National Awards were held in March this year to recognise the knowledge, skills and innovation of the Australian development industry.

nbn were please to continue our support by sponsoring the High Density award category and would like to again congratulate Hamton and ISPT on their win. We would also like to extend our congratulations to all the winners and nominees who put forward a range of exceptional development projects showcasing some of the best in Australia and the world.

For full details on the award winners visit UDIA National Awards website.

Meet the team

Claire McGregor
Account Associate - WA, SA and NT
As the Account Associate for WA, SA and NT, Claire works closely with developers and consultants in her regions to assess their application for the nbn™ network. Claire provides personal follow up with each applicant to fully understand their development needs, timings and the services best suited for their homes. Using her customer service skills, Claire works closely with each partner to explain the process and roles the developer, builder and nbn play in bringing the nbn™ network to life – on time and when residents need it.

“The best part about my job is being able to find solutions for complex developments. Being able to talk directly with our developer partners to find a strategy that will deliver the best outcome is a great feeling!”

Joseph Teoh
Senior Account Manager - Victoria
Joseph is one of Victoria’s senior account managers, looking after both residential and commercial developments. He works closely with developers, consultants and local councils to provide education sessions around the benefits the nbn™ network can bring to new homes and surrounding communities. Joseph is particularly passionate about setting up new commercial premises ensuring they have the right infrastructure in place to run and operate their business now and into the future. Joseph can often be found on site, providing expert advice on the best solution for the end customers – be that a resident or local business.

“The best part about my job is being able to work with a developer from start to finish. Seeing a project go from a plan on a page into a reality provides a great sense of achievement.”