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Australia – NBN Co Releases Updated Corporate Plan For 2012.

 31 August, 2012

 

Legal News & Analysis – Asia Pacific – Australia – TMT

  

On 8 August 2012, NBN Co released its updated Corporate Plan for 2012 – 2015.  In its update, NBN Co confirmed that the rollout of the National Broadband Network will take six months longer and the estimated cost of building the National Broadband Network has risen by 3.9% from $35.9 billion to $37.4 billion. However, this updated cost is still within the original forecast of $43 billion.
 
NBN Co expects that the rollout to 758,000 premises will either have commenced or be completed by December 2015, and this figure will increase to 3.5 million premises by mid-2015.  NBN Co has also slightly increased its forecasted annual internal rate of return to 7.1%. 
 
The updated Corporate Plan reflects a number of policy and regulatory decisions which have impacted the rollout of the National Broadband Network, including:
 
  • the Australian Competition and Consumer Commission’s decision to require 121 Points of Interconnect; 
  • an updated policy for connecting new housing developments (Greenfields sites);
  • the Optus agreement which will migrate Optus HFC customers onto the National Broadband Network; and
  • the adoption of a more efficient “Build Drop” method for connecting premises.
 
To view a copy of NBN Co’s Corporate Plan click here.
  

 

For further information, please contact:

 

Gordon Hughes, Partner, Ashurst

gordon.hughes@ashurst.com 

 

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