The document provides an overview of the fibre broadband models in Australia, New Zealand, and Singapore. It summarizes the key objectives, funding frameworks, timelines, and industry structures for the National Broadband Network (NBN) in Australia, Ultra Fast Broadband (UFB) and Rural Broadband Initiative (RBI) in New Zealand, and the Next Generation National Broadband Network (NGNBN) in Singapore. It also includes appendices detailing aspects like incumbent telcos, pricing models, forecasts, and acronyms for each country's fibre broadband program.

1. Overview of FibreCo Model in
AU, NZ and SG
A brief for BridgeAsia Thailand
Prepared by Jieh Tan, Sept-12
1

2. Australia Model
Items Descriptions
Programme National Broadband Network (NBN)
Objective/
Chartered
NBN Co is to connect 93% of Australian homes, schools and businesses with FTTP technology
providing broadband speeds of 100Mbps. All remaining premises will be served by a combination of
next generation fixed wireless and satellite technologies providing at least 12Mbps.
Funding Framework
and Cost
Government funding of AUD$30.4bil over ten years, additional AUD$13.7bil to be funded by debts.
Total peak funding of AUD$44.1bil. NBN cannot be owned privately.
Capex of AUD$37.4bil, Opex of AUD$26.4bil and the remaining to be cover by revenue of
AUD$23.1bil.
Timeframe By 2022
Background Prior to NBN, both Telstra and Optus operates HFC networks. However majority of these last mile
connections are cooper based and FTTN are not fully implemented.
NBNCo
(NetCo/Wholesale)
NBN to purchase legacy cooper and HFC infrastructure from Telstra and Optus, Telstra and Optus
customers are expected to switch over to NBN fibre network when fibre infrastructure are in place.
Entry level wholesale pricing start from AUD$24/SIO/month with bandwidth of 12/1Mbps.
Furthermore NBN Co wholesale prices are frozen for the next five years (2012-17).
Both Telstra & Optus are banned from directly competing with NBN (including Wholesale Wireless
& Satellite services).
There are 121 PoIs distributed across Australia. Theoretically any RSP can provide national footprint
however the monthly cost is prohibitive. This in turn allow large RSPs to offer wholesale white label
product and aggregation services.
NBN is expected to achieve payback by 2033, cashflow positive by 2022 and IRR of 7.1%.
Legacy cooper (Backup battery) and some part of HFC network to be superseded by fibre. 2

3. New Zealand Model
Items Descriptions
Programme Ultra Fast Broadband (UFB) & Rural Broadband Initiative (RBI)
Objective/
Chartered
UFB: 75% of NZ homes (FTTH), 100% of schools and hospital will have 100/50Mbps fibre
connections.
RBI: 97% of NZers to be connected via Fixed Wireless and/or LTE with 5Mbps throughput.
Remaining 3% to be service by Satellite Broadband and 1Mbps Fixed Wireless.
Funding Framework
and Cost
Public-Private Partnership partnership with Crown Fibre Holding (CFH)
UFB: NZD$1.35bil funded over ten years + private co-investments
RBI: NZD$300mil funded over ten years, funding only covers layer one and two. Remaining
NZD$150-$200mil to be funded by private partnership.
Timeframe By 2020
Background Prior to UFB & RBI, New Zealand already have FTTN network in place; built by Telecom NZ prior to
demerger as part of LLU initiative. A prerequisite for Chorus to win the network building tender, it
has to demerge and structurally separate from Telecom NZ.
Chorus
(NetCo/Wholesale)
Chorus was formerly the network arm of incumbent Telecom NZ. Chorus won 70% of the UFB
initiatives (twenty four towns and cities) and is awarded NZD$969mil over ten years. Chorus is
expected to invest up to NZD$350mil to complete the build.
Entry level residential connection (30/10) wholesale for NZD37.50/month; this is capped until 2015
and will increase by $1.00 per annum thereafter.
RBI further extend UFB into rural areas. Chorus will provide fibre to schools and hospital, VFNZ
provides the wireless infrastructures via fibre backhaul.
Legacy cooper network will be utilise for premises without fibre and POTS (Able to provide
communication services during power outage).
CFH by large, has looked to NBN for guidance and keeping modus operandi similar where possible.
3

4. Singapore Model
Items Descriptions
Programme Next Generation National Broadband Network (NGNBN)
Objective/ Chartered To have 95% of premises connected to ultra-fast broadband (1Gpbs) by mid-2012 and OpenNet will
assume universal service obligations after 2013. Singapore NGNBN comprise of three distinct
layers for effective open access.
Funding Framework
and Cost
Public-Private Partnership: Government funding of SGD$750mil over five years for NetCo, $250mil
for OpCo. Plus private funding (not disclose).
Timeframe By 2012
Background Singapore already has FTTH network in place, majority of premises are able to connect to
100Mbps.
OpenNet
Consortium
(NetCo/Wholesale)
Structural Separation
Consortium consist of Axia (30%), SingTel (30%), Singapore Press Holdings (25%) and Singapore
Power Telemedia (15%); were awarded Singapore passive network tender in 2008. SingTel will
transfer existing ducts, manholes and exchanges to AssetCo and sell down its stake in that entity by
2014. OpenNet will own and deploy all the fibre optic cables, and offer wholesale dark fibre
services to qualifying operators on a non-discriminatory basis (Basically Layer 1).
Residential Entry pricing starts at SGD15/month (1:24 contention ratio) and SGD$50 for businesses
(1:16 contention ratio). Plus additional one off installation fee and cabling beyond 15meters.
OpCo
Operational Separation
The electronics will be offered to Opco who will operate the Layers 2 and 3 of the network and the
Opco will resell to RSPs (Open Access). Four classes of service from “best effort” to “real time”.
Residential Entry price additional SGD$6/month and SGD$25 for business. Price varies accordingly
to throughput and class of service.
4

5. Appendix – Telstra & NBN
(Incumbent)
Sourced: NBN Co and Telstra Sign Binding Definitive Agreements, http://www.nbnco.com.au/assets/media-releases/2011/nbn-co-and-telstra-sign-binding-definitive-agreements-23-jun-11.pdf
NBN brought Telstra & Optus
legacy cooper and HFC networks,
and will decommission these
network overtime. Condition of
purchase prohibit Telstra &
Optus to compete with NBN in
the wholesale wireless space.
NBN will “rent”
infrastructure
(Exchanges, ducts,
cabinets, etc.) from
Telstra & Optus.
Reportedly Telstra is
expecting to receive
AUD$11bil over ten
years and AUD$800mil
for Optus. This
includes rental &
relevant services
Foxtel is a provider of
pay TV in Australia.
www.foxtel.com.au
5

6. Appendix – NBN Business Model
Sourced: NBN Co Corporate Plan 2011 - 2013, Exhibit 2.2, http://www.nbnco.com.au/assets/documents/nbn-co-3-year-gbe-corporate-plan-final-17-dec-10.pdf
Small scale
operators,
regional RSPs
Large scale
operators with
nationwide reach
NBN with 121+
PoIs throughout
whole of Australia
Exit Strategy?
The current Labour Government is very unlikely to privatise the NBN, however the
liberal may have a different view. Furthermore, NBN will be the sole provider of
fibre infrastructure (monopoly), an exit will require strong ACCC approval as it
would hinder competition under the Trade Practice Act
6

7. Appendix – NBN Pricing Model
Sourced: NBN Product and Pricing Overview for Service Providers Dec-11, Figure 4, http://www.nbnco.com.au/assets/documents/product-and-pricing-overview-dec-11.pdf
AVC
(Mpbs)
Monthly
Recurring
12/1 $24
25/5 $27
25/10 $30
50/20 $34
100/40 $38
250/100 $70
500/200 $100
1000/400 $150
CVC Monthly
Recurring
1 Mbps $20
NNI
(per PoI)
Monthly
Recurring
1Gbps/10km $200
10Gbps/10km $500
1Gbps/40km $400
10Gbps/40km $1000
NNI
(per PoI)
One off Setup
Fee
1Gbps/10km $1,000
10Gbps/10km $7,000
1Gbps/40km $5,000
10Gbps/40km $35,000
RSPs baked in
contention ration
assumption here.
Ranging from 1:30
to 1:100 or more.
Small RSPs generally use high contention ratio to remain
competitive. High NNI cost (there are 121 PoIs) creates
opportunity for large operators to provide aggregation
services.
7

8. Appendix – NBN Fixed Wireless
Sourced: NBN Fixed Wireless Factsheet, http://www.nbnco.com.au/assets/documents/n-p/nbn-co-fixed-wireless-factsheet.pdf
LTE
Network
NBN Co Fixed Wireless is engineered to deliver
services to a fixed number of premises within
each coverage area. Thus bandwidth per
premise is designed to be more consistent than
mobile wireless.
8

9. Appendix – NBN Forecast Financial
Sourced: NBN Co Corporate Plan 2012 - 2015, Exhibit 9.4, http://www.nbnco.com.au/assets/documents/nbn-co-corporate-plan-6-aug-2012.pdf
9

10. Appendix – NBN Forecast Funding
Sourced: NBN Co Corporate Plan 2012 - 2015, Exhibit 9.10, http://www.nbnco.com.au/assets/documents/nbn-co-corporate-plan-6-aug-2012.pdf
Sourced: NBN Co Corporate Plan 2012-2015, Section 9.11.2, http://www.nbnco.com.au/assets/documents/nbn-co-corporate-plan-6-aug-2012.pdf
Sourced: Budget 2012-13, Broadband, Communication and the Digital Economy, http://www.budget.gov.au/2012-13/content/ministerial_statements/rural_and_regional/html/rural_and_regional-05.htm
The Australia Government has currently set a budget of AUD$20.1bil to FY15/16 as equity
injection for NBN. Any additional equity above and beyond that will have to be funded by issuing
Australia Infrastructure Bond. NBN Debt funding is not required until FY15, NBN will seek external
funding from banks and financial markets without explicit guarantees from the Shareholder
Ministers as early as possible. No assurances can be given that such debt-raising requirements
will be met, the capital structure and debt issuance decisions will be determined at the time by the
Shareholder Ministers.
10

11. Appendix – NZ Fibre Network
Sourced: Telecom Demerger Scheme Booklet, http://media.corporate-ir.net/media_files/IROL/91/91956/SchemeBooklet.PDF
New Zealand already
have FTTN network
deployed during LLU
initiative
Effectively,
PoIs
equivalent
to NBN
11

12. Appendix – NZ RBI
Sourced: RBI Auckland Year 2 update, http://chorus.co.nz/file/3403/auckland-final.pdf 12
Chorus will provide
the fibre connections
throughout all of New
Zealand ‘s schools,
and hospital. VFNZ
build additional 3G
base stations funded
and agreed with the
government.

13. Appendix – NZ Crown Fibre Holdings
Sourced: Crown Fibre Holdings, http://www.crownfibre.govt.nz/crown-partners/agreements-with-ufb-partners/
Sourced: CFH Invitation to Participate, http://www.crownfibre.govt.nz/media/4824/invitation-to-participate.pdf
Items Descriptions
What is CFH About? CFH is established to manage the NZ Government’s NZD$1.35bil investment in UFB
infrastructure. CFH will managed the government’s investment in networks, facilitate
and, where appropriate, lead the development of operational and technical standards
for LFCs. CFH will also monitors LFC fibre rollout targets. CFH is operated by group of
seasoned executives. The government has already set a reserve for UFB.
PPP Framework CFH will entered into a Joint-Venture with private companies that won the tender, and
setup LFCs to build the network. Each LFCs will tender for their hardware and ensure
its interoperate with other LFCs technologies. LFCs are expected to comply with
Open Access Requirements.
Layer 2 services are not funded by the Government, however LFC can choose to
provide Layer 2 Services with CFH consent.
LFC will operate independently of its shareholders, premises, staff and operations
systems. LFC is expected to own its network infrastructure and is expected to manage
and direct the operation and maintenance of its network.
Local Fibre Companies
(UFB Coverage)
Northpower Fibre (1.6% ) - Owned by Northpower Limited
Ultrafast Fibre (13.7%) – Owned by WEL Networks
Enabled Services Networks (15.3%) - Christchurch City Holdings Limited
Chorus (69.4%) – Listed Company, formerly Telecom NZ Network arm.
LFC Overriding
Objectives
1) Maximise the availability of fibre infrastructure and Layer 1 Services within the LFC
Coverage Area
2) Generate widespread uptake of services delivered on the fibre infrastructure within
the LFC Coverage Area, including by residential end-users
13

14. Appendix – NZ UFB & RBI Funding
Sourced: RBI Funding, http://media.nzherald.co.nz/webcontent/document/pdf/ruralbroadband.pdf
Sourced: UFB Funding, http://www.treasury.govt.nz/budget/2012/suppestimates/suppest12commun.pdf
Sourced: Invitation to Participate, Appendix 2, Exit Mechanism, http://www.crownfibre.govt.nz/media/4824/invitation-to-participate.pdf
Items Descriptions
UFB UFB is expected to be funded by reserve dedicated for it.
RBI RBI is expected to cost the NZ government $300mil. The government is expected to
fund $48mil from it’s budget and the remaining $258mil from the Telecommunication
Development Levy through TSO
14
Exit Strategy?
Both CFH and their respective partners have the rights to exit from their LFC
holdings. However CFH has agreed to not received any dividend as part of
this joint venture, all dividend will attribute to the CFH partners for 10
years.
CFH has the option to dilute it’s share in LFCs to their respective partners.
However the government still hold the rights to prohibit any changes to the
provisions in LFC’s constitution by mean of a single government share in all
LFCs.
The sales of LFCs shares would not undergo the similar level of scrutiny by
ComCom when compared to the Australia NBN. As there are multiple LFCs
and government prohibit any changes to LFCs’ constitution

15. Appendix – Singapore Model
Sourced: http://www.ida.gov.sg/Infrastructure/20090731125844.aspx
OpenNet
Singapore
Nucleus
Connect,
SingTel, M1,
ViewQuest
15

16. Appendix – Demographics
New Zealand Australia Singapore
Population 4,434,680 22,700,300 5,183,700
Land Area (km2) 270,534 7,702,466 710
Population Density per
km2
16.39 2.95 7,300.99
Mobile Penetration Rate 124.3% 129.5% 149.6%
Fixed Broadband
Penetration per 100
inhabitants Dec-11
26.9 24.6 24.9
OECD Broadband Ranking 17 21 N/A
GDP/Capita
(USD$ Nominal)
Sourced: IMF 2011
$36,648 $65,477 $49,271
Number of Households 1,659,800 9,117,033 1,146,200
16

17. Appendix – Acronyms
Items Descriptions
PoIs Point of Interconnects
VFNZ Vodafone New Zealand
FTTP Fibre To The Premises
FTTN Fibre To The Nodes
HFC Hybrid Fibre Coaxial
RSP Retail Service Provider
NetCo Network Company (Infrastructure)
OpCo Operating Company
LLU Local Loop Unbundling
ULL Unbundled Local Loop
SIO Services In Operations (Subscriber)
Items Descriptions
AVC Access Virtual Circuit
CVC Connectivity Virtual Circuit
NNI Network-Network Interface
ACCC Australia Competition and
Consumer Commission
ComCom Commerce Commission (NZ)
PPP Public Private Partnership
LCF Local Fibre Companies
USO Universal Service Obligation
TSO Telecommunications Service
Obligations
17