Varied forms of public sector involvement in broadband: Australia and New Zealand - Fernando BELTRAN, University of Auckland - NGN Executive Seminar - DigiWorld Summit 2013
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The document discusses public sector involvement in broadband infrastructure development in New Zealand and Australia, emphasizing the economic and social benefits of advanced communication networks. It highlights New Zealand's dual approach with the Ultra-Fast Broadband (UFB) and Rural Broadband Initiative (RBI), showcasing significant government investments and partnerships with private firms. The comparison with Australia's National Broadband Network (NBN) underscores varying strategies and regulatory frameworks influencing broadband deployment in both countries.
![New Zealand and Australia
(before Australian 2013 election)
The University of Auckland
New Zealand
2013
Australia
How are
they doing?
How much
does it
cost?
Deployment Target
•
Funding
•
Capital
expenditure
$ per person
•
How is it
structured?
What are
the
regulations?
By 2020
12.2 million fibre premises passed,
1 million fixed wireless and satellite
premises covered;
8.5 million fibre premises connected
(NBN Co 2012a).
Government funded
New Zealand
By 2019
1,350,000 fibre premises passed;
By 2015
252,000 rural households covered
(MBIE 2012)
A $ 37.4 billion [€ 49,1 billion*]
Government invests half of the total
and private partners afford the rest
NZ $ 1.5 billion [€ 0.95 billion*]
A $1,669 [€ 1,270]
NZ $ 341 [€ 215]](https://image.slidesharecdn.com/fernandobeltran-131128050138-phpapp01/85/Varied-forms-of-public-sector-involvement-in-broadband-Australia-and-New-Zealand-Fernando-BELTRAN-University-of-Auckland-NGN-Executive-Seminar-DigiWorld-Summit-2013-18-320.jpg)
![New Zealand and Australia
(before Australian 2013 election)
The University of Auckland
New Zealand
2013
Australia
How are
they doing?
Deployment Target
By 2020
12.2 million fibre premises passed,
1 million fixed wireless and satellite
premises covered;
8.5 million fibre premises connected
(NBN Co 2012a).
Government funded
New Zealand
By 2019
1,350,000 fibre premises passed;
By 2015
252,000 rural households covered
(MBIE 2012)
How is it
structured?
What are
the
regulations?
•
Funding
•
Capital
expenditure
$ per person
A $ 37.4 billion [€ 49,1 billion*]
Government invests half of the total
and private partners afford the rest
NZ $ 1.5 billion [€ 0.95 billion*]
•
How much
does it
cost?
A $1,669 [€ 1,270]
NZ $ 341 [€ 215]
•
Leading agency
Crown Fibre Holdings, CFH.
•
Private
participation
National Broadband Network Company,
NBN Co.
NBN Co is wholly owned by the
Australian government; private
participation is through procurement
contracts for fibre build-up.
Regional Backbone Blackspots Program,
RBBP.
Four partnerships with private parties
(Chorus, Enable Networks, North
Power Fibre, UltraFast Fibre)
Rural Broadband Initiative, RBI.](https://image.slidesharecdn.com/fernandobeltran-131128050138-phpapp01/85/Varied-forms-of-public-sector-involvement-in-broadband-Australia-and-New-Zealand-Fernando-BELTRAN-University-of-Auckland-NGN-Executive-Seminar-DigiWorld-Summit-2013-19-320.jpg)
![New Zealand and Australia
(before Australian 2013 election)
The University of Auckland
New Zealand
2013
Australia
How are
they doing?
Deployment Target
By 2020
12.2 million fibre premises passed,
1 million fixed wireless and satellite
premises covered;
8.5 million fibre premises connected
(NBN Co 2012a).
Government funded
New Zealand
By 2019
1,350,000 fibre premises passed;
By 2015
252,000 rural households covered
(MBIE 2012)
•
Funding
•
A $ 37.4 billion [€ 49,1 billion*]
•
Capital
expenditure
$ per person
Government invests half of the total
and private partners afford the rest
NZ $ 1.5 billion [€0.95 billion*]
A $1,669 [€ 1,270]
NZ $ 341 [€ 215]
How is it
structured?
•
Leading agency
Crown Fibre Holdings, CFH.
•
Private
participation
What are
the
regulations?
•
Regulatory
commitments
•
Copper
infrastructure
National Broadband Network Company,
NBN Co.
NBN Co is wholly owned by the
Australian government; private
participation is through procurement
contracts for fibre build-up.
Regional Backbone Blackspots Program,
RBBP.
Self-regulatory guidelines and
commitments consigned in the Special
Access Undertakings under review by
ACCC
Total decommission of Telstra’s last mile
copper infrastructure as dictated by the
NBN Co-Telstra agreement
How much
does it
cost?
Four partnerships with private parties
(Chorus, Enable Networks, North
Power Fibre, UltraFast Fibre)
Rural Broadband Initiative, RBI.
Commerce Commission monitors the
buildup process
Commerce Commission rules in
favour of access seekers by reducing
the price of UCLL.](https://image.slidesharecdn.com/fernandobeltran-131128050138-phpapp01/85/Varied-forms-of-public-sector-involvement-in-broadband-Australia-and-New-Zealand-Fernando-BELTRAN-University-of-Auckland-NGN-Executive-Seminar-DigiWorld-Summit-2013-20-320.jpg)
![New Zealand and Australia
(post Australian 2013 election)
The University of Auckland
New Zealand
2013
Australia
How are
they doing?
Deployment Target
???
•
Funding
Government funded
•
A$ 22 billion
•
Capital
expenditure
$ per person
How is it
structured?
•
Leading agency
National Broadband Network Company,
NBN Co.
•
Private
participation
What are
the
regulations?
•
Regulatory
commitments
•
Copper
infrastructure
How much
does it
cost?
New Zealand
By 2019
1,350,000 fibre premises passed;
By 2015
252,000 rural households covered
(MBIE 2012)
Government invests half of the total
and private partners afford the rest
NZ $ 1.5 billion [€ 0.95 billion*]
NZ $ 341 [€ 215]
Crown Fibre Holdings, CFH.
Four partnerships with private parties
(Chorus, Enable Networks, North
Power Fibre, UltraFast Fibre)
Rural Broadband Initiative, RBI.
Self-regulatory guidelines and
commitments consigned in the Special
Access Undertakings under review by
ACCC
Telstra agreement under discussion
Commerce Commission monitors the
buildup process
Commerce Commission rules in
favour of access seekers by reducing
the price of UCLL.](https://image.slidesharecdn.com/fernandobeltran-131128050138-phpapp01/85/Varied-forms-of-public-sector-involvement-in-broadband-Australia-and-New-Zealand-Fernando-BELTRAN-University-of-Auckland-NGN-Executive-Seminar-DigiWorld-Summit-2013-21-320.jpg)
Varied forms of public sector involvement in broadband: Australia and New Zealand - Fernando BELTRAN, University of Auckland - NGN Executive Seminar - DigiWorld Summit 2013
- 1. New Zealand Varied forms of public sector involvement in broadband: Australia and New Zealand The University of Auckland Fernando Beltrán University of Auckland DigiWorld Summit 2013 Montpellier, France November 19-21, 2013
- 2. Why Next Generation Access networks? 2013 Trends showing in some parts of the world (Given, 2010): “Shared conviction about the anticipated size of fast broadband’s economic and social benefits” The University of Auckland New Zealand (Reynolds, 2009): • “Broadband networks are increasingly recognised as fundamental for economic and social development.” • “They serve as communication and transaction platforms for the entire economy and can improve productivity across all sectors.” • “Advanced communication networks are a key component of innovative ecosystems and support economic growth.”
- 3. Why government participation? The University of Auckland New Zealand 2013 (Given, 2010): • Australia and New Zealand were perceived to be lagging. Both were well behind the OECD average for total broadband penetration in early 2000s. • Incumbents not investing in fibre access networks. • “The big ones were not consistently aggressive enough; the aggressive ones were not big enough” • Shift away from the liberalization and privatization policy consensus that dominated the last two decades. Question: Will a wholesale-only fixed access network operation maximize those benefits?
- 4. 2013 New Zealand The University of Auckland Australia’s National Broadband Network (NBN)
- 5. National Broadband Network NBN (before September 2013 election) 2013 March 2009 2011 The University of Auckland New Zealand Sept 2012 Australian Labor government announces plans to invest A$ 40 billion in NBN. Creates NBN Co. Costs are revised to A$ 37 billion Special Access Undertaking SAU framework delivered to ACCC A$11 billion deal with Telstra; A$800M Optus deal FTTH – 100Mbps symmetrical 7% FTTP other 93% Fixed wireless (LTE/4G) Satellite - 12/1 Mbps - 12/1 Mbps
- 6. 2013 Fibre Serving Areas The University of Auckland New Zealand Fibre serving area Source: NBN Co
- 7. 2013 Fibre Serving Areas + Wireless Fibre serving area The University of Auckland New Zealand Wireless coverage Source: NBN Co
- 8. Fibre Serving Areas + Wireless + Satellite 2013 Fibre serving area Wireless coverage Satellite Earth station The University of Auckland New Zealand Satellite beam Source: NBN Co
- 9. National Broadband Network NBN (after September 2013 election) 7% 2013 FTTP 93% The University of Auckland New Zealand Sept 2013 Nov 2013 other Coalition announces NBN will be a FTTN network Coalition commissions three review studies on NBN Cost is revised down to A$ 22 billion ACCC awaits government decisions on NBN Terms of Telstra deal (but not the amount) most likely to be renegotiated 7% 22% FTTP FTTN other 71%
- 10. 2013 New Zealand The University of Auckland New Zealand’s dual approach: Ultra-Fast Broadband Network (UFB) and Rural Broadband Initiative (RBI)
- 11. Ultra-Fast Broadband (UFB) and Rural Broadband Initiative (RBI) Election led National Party to government 2009 NZ Government pledged $1.5 billion investment in a nationwide broadband infrastructure, which will bring broadband to all Kiwis • UFB Ultra-Fast Broadband 75% of HH • RBI Rural Broadband Initiative 25% of HH The University of Auckland New Zealand 2013 2008 First six years on priority broadband users • businesses • schools • health services • plus green field developments and certain tranches of residential areas 2011 Tender procedure for a Public Private Partnership GPON deployment won by four companies: • 3 Local Fibre Companies • Chorus (former incumbent, demerged)
- 12. The University of Auckland New Zealand 2013 New Zealand’s Ultra-Fast Broadband Network UFB Source: CFH
- 13. Content market The University of Auckland Content and Service 1 Content and Service n Content provider New Zealand 2013 NGN service platform and markets RSP Access market RSP Competing access provider RSP LFC LFC LFC Broadband LFC Broadband Broadband network Broadband network network network End users
- 14. The University of Auckland New Zealand 2013 UFB Operating Structure Source: CFH
- 15. The University of Auckland New Zealand 2013 UFB Financial Structure Source: CFH
- 16. New Zealand and Australia (before Australian 2013 election) The University of Auckland New Zealand 2013 Australia How are they doing? How much does it cost? How is it structured? What are the regulations? New Zealand
- 17. New Zealand and Australia (before Australian 2013 election) The University of Auckland New Zealand 2013 Australia How are they doing? How much does it cost? How is it structured? What are the regulations? Deployment Target By 2020 12.2 million fibre premises passed, 1 million fixed wireless and satellite premises covered; 8.5 million fibre premises connected (NBN Co 2012a). New Zealand By 2019 1,350,000 fibre premises passed; By 2015 252,000 rural households covered (MBIE 2012)
- 18. New Zealand and Australia (before Australian 2013 election) The University of Auckland New Zealand 2013 Australia How are they doing? How much does it cost? Deployment Target • Funding • Capital expenditure $ per person • How is it structured? What are the regulations? By 2020 12.2 million fibre premises passed, 1 million fixed wireless and satellite premises covered; 8.5 million fibre premises connected (NBN Co 2012a). Government funded New Zealand By 2019 1,350,000 fibre premises passed; By 2015 252,000 rural households covered (MBIE 2012) A $ 37.4 billion [€ 49,1 billion*] Government invests half of the total and private partners afford the rest NZ $ 1.5 billion [€ 0.95 billion*] A $1,669 [€ 1,270] NZ $ 341 [€ 215]
- 19. New Zealand and Australia (before Australian 2013 election) The University of Auckland New Zealand 2013 Australia How are they doing? Deployment Target By 2020 12.2 million fibre premises passed, 1 million fixed wireless and satellite premises covered; 8.5 million fibre premises connected (NBN Co 2012a). Government funded New Zealand By 2019 1,350,000 fibre premises passed; By 2015 252,000 rural households covered (MBIE 2012) How is it structured? What are the regulations? • Funding • Capital expenditure $ per person A $ 37.4 billion [€ 49,1 billion*] Government invests half of the total and private partners afford the rest NZ $ 1.5 billion [€ 0.95 billion*] • How much does it cost? A $1,669 [€ 1,270] NZ $ 341 [€ 215] • Leading agency Crown Fibre Holdings, CFH. • Private participation National Broadband Network Company, NBN Co. NBN Co is wholly owned by the Australian government; private participation is through procurement contracts for fibre build-up. Regional Backbone Blackspots Program, RBBP. Four partnerships with private parties (Chorus, Enable Networks, North Power Fibre, UltraFast Fibre) Rural Broadband Initiative, RBI.
- 20. New Zealand and Australia (before Australian 2013 election) The University of Auckland New Zealand 2013 Australia How are they doing? Deployment Target By 2020 12.2 million fibre premises passed, 1 million fixed wireless and satellite premises covered; 8.5 million fibre premises connected (NBN Co 2012a). Government funded New Zealand By 2019 1,350,000 fibre premises passed; By 2015 252,000 rural households covered (MBIE 2012) • Funding • A $ 37.4 billion [€ 49,1 billion*] • Capital expenditure $ per person Government invests half of the total and private partners afford the rest NZ $ 1.5 billion [€0.95 billion*] A $1,669 [€ 1,270] NZ $ 341 [€ 215] How is it structured? • Leading agency Crown Fibre Holdings, CFH. • Private participation What are the regulations? • Regulatory commitments • Copper infrastructure National Broadband Network Company, NBN Co. NBN Co is wholly owned by the Australian government; private participation is through procurement contracts for fibre build-up. Regional Backbone Blackspots Program, RBBP. Self-regulatory guidelines and commitments consigned in the Special Access Undertakings under review by ACCC Total decommission of Telstra’s last mile copper infrastructure as dictated by the NBN Co-Telstra agreement How much does it cost? Four partnerships with private parties (Chorus, Enable Networks, North Power Fibre, UltraFast Fibre) Rural Broadband Initiative, RBI. Commerce Commission monitors the buildup process Commerce Commission rules in favour of access seekers by reducing the price of UCLL.
- 21. New Zealand and Australia (post Australian 2013 election) The University of Auckland New Zealand 2013 Australia How are they doing? Deployment Target ??? • Funding Government funded • A$ 22 billion • Capital expenditure $ per person How is it structured? • Leading agency National Broadband Network Company, NBN Co. • Private participation What are the regulations? • Regulatory commitments • Copper infrastructure How much does it cost? New Zealand By 2019 1,350,000 fibre premises passed; By 2015 252,000 rural households covered (MBIE 2012) Government invests half of the total and private partners afford the rest NZ $ 1.5 billion [€ 0.95 billion*] NZ $ 341 [€ 215] Crown Fibre Holdings, CFH. Four partnerships with private parties (Chorus, Enable Networks, North Power Fibre, UltraFast Fibre) Rural Broadband Initiative, RBI. Self-regulatory guidelines and commitments consigned in the Special Access Undertakings under review by ACCC Telstra agreement under discussion Commerce Commission monitors the buildup process Commerce Commission rules in favour of access seekers by reducing the price of UCLL.
- 22. 2013 New Zealand The University of Auckland merci thank you tēnā koutou gracias f.beltran@auckland.ac.nz TPRC 2011 23
- 23. References New Zealand The University of Auckland Given, J. (2010) Take your partners: Public private interplay in Australian and New Zealand plans for next generation broadband. Telecommunications Policy, Volume 34, Issue 9, October 2010, Pages 540549 Reynolds, T.(2009). The role of communications infrastructure investment in economic recovery. DSTI/ICCP/CISP(2009). Paris: OECD 2013 NBN Co. (2012). NBN Corporate Plan 2012-2015 CFH (2010). Ultra Fast Broadband in Business - Seizing the Opportunity Beltrán, F. (2013) Effectiveness and efficiency in the build-up of high-speed broadband platforms in Australia and New Zealand. Communications and Strategies. Beltrán, F. (2013) Fibre-to-the-home, high-speed and national broadband plans: Tales from Down Under. Telecommunications Policy.