VIDEO NOW WATCHABLE: The FTTN service on the NBN is live, with 3.7 million homes able to be connected by mid-2018, of which 1.7 million will be active.

After FTTN trials in the NSW suburb of Belmont, which saw users within 400 metres of the node able to get 100Mbps down and 40Mbps up, and those within 700 metres of the node able to get 60Mbps down and 20Mbps up, nbn's FTTN rollout has commenced.

The full video of the nbn media launch is embedded below, and provides a great explanation of the FTTN service being launched today, who can get it, how fast more homes will be added, along with a series of great questions from journalists and answers from nbn executives on stage.

The very interesting and must-watch 51 minute video is available to watch below NOW.

nbn, the company, says that, where the FTTN footprint has been released, RSPs or retail service providers (a fancy way to say ISPs) can now order service for re-sale, with nbn saying that Australians on the FTTN footprint can be ‘digitally enabled far faster than alternatives.’

Indeed, nbn states that the FTTN rollout is ‘going to happen more quickly with less inconvenience for users and at less cost to the taxpayer.’

nbn says it will have 3.7 million homes connectable by mid-2018, with a target footprint of 38% when the rollout closes, which is 4.5 million homes, and of which 1.7 million are expected to be active end users by mid-2018.

By the end of the current financial year, 500,000 homes will ready to be connected, of which 220,000 are already ready.

nbn says it is rapidly building more FTTN capability as it is a faster build which does not require a customer appointment. The service is activated at the node or pillar, and in a consumer’s home, you just need to swap out the ADSL2+ modem with a VDSL modem.

FTTN technology being used by nbn is Alcatel Lucent technology, with a typical FTTP installation cost per user being $4,400, which is much more expensive that the typical FTTN cost per user of $2,300, which helps to lower the overall cost.

A statement from Alcatel Lucent is below.

FTTN services are asymmetric - 25Mbps down and 5Mbps up, for example, but in Belmont, there were business users on symmetric services of 10Mbps up and 10Mbps down - so both symmetric and asymmetric services are available.

The difference is that symmetric services are primed to use the full capacity of the 10Mbps at all times, rather than the peak burst speeds that asymmetric services represent.

It’s important to note that the nbn company’s customers aren’t end users, its customers are RSPs such as Exetel and others.

Were also told that 90% of Australians on the FTTN footprint will be able to get a minimum 50/20 service.

Also of note is that there is no restriction - as rumoured otherwise and elsewhere - that there will be a restriction to a 12Mbps down and 1Mbps up service during the co-existing period.

The co-existing period is 18 months long after the installation of a node in a street.

This is because there will continue to be ADSL2+ customers connected to the exchange while others move to FTTN, although after 18 months all customers wishing to be connected to the phone network and the nbn will need to migrate to an FTTN service.

During this time, there is a ‘power back off’. This is so that ADSL2+ services can continue uninterrupted, although once the 18 month period is over, the ‘power back off’ will be removed and VDSL services can operate at even faster speeds.

However, nbn insists that even with power back off deployed during the 18 month transition period, 90% of Australians - who will be within 700 metres of the node - will be able to access a 50mbps down and 20Mbps up service if they want it.

On the ‘lower-end’ 25Mbps down and 5Mbps up service, nbn says this will allow:

video streaming multiple HD streams

use of cloud computing

video conferencing

online gaming

gaming reliability

We were told people can already do this, but what it will allow is better concurrent usage, especially when you have an average of 8.2 devices on average per home - a desktop computer, notebooks, tablets, big screen TV, smartphones etc.

It is the concurrency of so many devices trying to access the full capability of current ADSL2+ services that is the issue, and a 25/5 service will solve this for most users. For those that need more, 50/20 will be available.

An example of what various Internet services use is as follows:

Email and Internet - 1mbps down.

Skype- 1.5mbps up and down

online gaming - less than 100ms latency

telehealth video conferencing - 2 to 5 mbps up and down

HD IPTV - 5 - 10 mbps

Current ADSL2+ connections are not allowing proper concurrency to occur, and that while 25/5 will cater for many homes, most will be able to get a 50mbps service if a customer wants it.

For businesses, their usage is generally as follows:

telecommuting - 2mbps up and down

multi-line telephony - 10 lines at say 150kbps per line means 1 to 2Mbps up and down

cloud services - 1 to 5Mbps up and down

sending large files - +2 mbps up

business grade video conferencing and collaboration - 6-12Mbps+ with less than 150ms latency.

nbn says that large amounts of Australians businesses that aren’t able to get a quality service will be able to with the FTTN NBN and that for many small and medium businesses - or branch offices of larger organisations - this is a big game charger.

nbn co also explained that the FTTN service fits into the overall product architecture for all the various ways that users will be able to connect.

During the press conference, there were questions about HFC services, and whether some houses might be connected to both, although where there is HFC, HFC will be deployed and not FTTN. Areas that have gaps in HFC coverage will see ‘infill’, where HFC services are extended to those streets or areas that missed out on HFC in the first place.

The benefits of FTTN compared to FTTP are also that there are no civil works to be done at end-user premises. Any end-user work at homes to fix copper cabling, for example, will be the exception, not the norm.

It is also far less invasive for business users, especially on busy business strips or areas where an FTTN node is far easier to deploy, using existing copper to get into businesses rather than needing to deploy FTTP.

Thus, end-users, be they businesses or consumers, simply need their existing phone line and an upgraded VSDL modem.

For most RSP customers, this will be a self-install situation - no engineer will be needed, although a professional installation option from RSPs will be available for those that need it or want to pay for it.

VDSL modems are also backwards compatible with ADSL2+ connections, so someone buying a VDSL modem today in preparation for VDSL can still use it with a current ADSL2+ connection.

nbn was also at pains to note that it is deploying a vast amount of fibre deep into the network, with only the the copper ‘tail’ to the actual premise being left in place.

In addition, the network can be extended with ‘FTTdp design’, where microcodes can take the fibre further into the network, closer to people’s homes, so if there is a large number of homes outside the 700 metre range for 50/20 connectivity, an FTTN node can be placed closer to those homes to ensure those homes can get 50/20 services.

There’s also the fact that G.Fast is rapidly maturing, with the ‘first commercial launch in Taiwan before year-end’. G.Fast services need to be within 200 metres of the G.Fast node, which will be ‘great for business symmetrical and high-end service’.

There was no timeframe on G.Fast in Australia today - the announcement was for FTTN after all - but in the future, if large numbers of homes are outside a 200 metre radius and there is demand for G.Fast services then it can be installed - with all that to still be decided on and deployed once there is even more G.Fast evolution.

As for FTTN, 4.5 million premises will be covered by this technology, and nbn says it si ‘very encouraging to start seeing orders flow.

By January, nbn expects to be releasing ’60,000 premises a month’ to FTTN connectivity, and is an example of how the rollout will be accelerated.

nbn says that FTTN is going to play a crucial role in helping nbn to reach our goals,

removes many of the problems we faced with FTTP deployment, with nbn very encouraged by the results of our FTTN end-user trials in Belmont.

nbn says it has ‘already signed Wholesale Broadband Agreements (WBA) with over twenty Retail Service Providers (RSPs) including Telstra, Optus, Optus Wholesale, Exetel, TPG, iiNet, AAPT, SkyMesh, Harbour ISP and M2 Group (Dodo, iPrimus, Commander) to sell FTTN services.’

John Simon, Chief Customer Officer at nbn said:

“The launch of FTTN technology will help us get fast broadband to Australians more quickly and with less inconvenience to end-users.

“We are looking forward to getting this part of the nbn™ network fully built out and allowing Australians to enjoy the huge benefits of fast broadband.”

Tony Cross, Chief Architect at nbn said:

“Overseas experience in markets like the UK and Germany has proven the value of FTTN in delivering fast broadband services to millions of premises both quickly and cost effectively.

“Our own FTTN end-user trials have been hugely encouraging in showing that FTTN can deliver great speeds to Australians, with most end-users on the trial getting wholesale speeds of 100Mbps (download) and 40Mbps (upload).”

nbn’s fixed networks partner Alcatel-Lucent welcomed the launch of nbn’s FTTN product. Alcatel-Lucent has worked with nbn since 2010 across projects including transit network, Ethernet aggregation, IT, GPON FTTP, FTTB and FTTN.



Sean O’Halloran, Alcatel-Lucent Oceania President and Managing Director, said: “This is a significant step forward as nbn continues to accelerate its deployment and product strategy, pushing fibre further into the network and bringing more broadband to more people.

"Advances in copper technologies are changing the paradigm all around the world – allowing operators to offer higher speeds and generate service revenues, as well as increasing capacity faster. Experience shows that a flexible approach to access technology has rapidly become the prevailing trend among broadband providers globally and we see nbn as well positioned to be a world-leader.”

Finally, in my article yesterday foreshadowing today’s announcement, I wondered out loud whether Bill Morrow, nbn CEO, would be attending today’s launch or not, and speculated any non-appearance by him might be to avoid media questioning over the Fairfax journalist hacking scandal by an ex-Vodafone employee, of a company that Morrow was the CEO of (Vodafone) before he became nbn co CEO.

I cheekily suggested he was ‘embattled’, but receive a gentle rebuke from nbn’s media relations staff, who insisted that Morrow is ‘not embattled’, but a ‘a highly respected business man and global CEO who takes comments impugning his character or integrity very seriously.’

The spokesperson was able to ‘confirm he won't be at the event on Monday as he is currently overseas. If he was in the country he absolutely would front what is an incredible milestone for the business.’

In addition, Morrow’s response of ‘I do not recall’ rather than ‘I know nothing’ as I cheekily suggested, complete with a Sergeant Schultz video are no surprising considering Morrow ‘was being asked about events that occurred 15 months prior to his arrival in Australia, 18 months after he left the company.’

Indeed, to be very clear, the nbn co spokesperson says ‘this did NOT happen "during Morrow's tenure as Vodafone CEO". It happened in Jan 11. Bill joined in March 12.’

Thus, any insinuation the hacking occurred during Morrow’s tenure as Vodafone CEO is flatly denied and incorrect, and that any cheeky suggestions by me that Morrow was afraid to front the media are wrong given Morrow’s appearance at the National Press Club last Wednesday where he was ‘clearly not afraid to answer media questioning on this or any other topic.’

Morrow has ‘publicly expressed he is appalled by any breach of privacy’ that occurred at Vodafone.

The following additional statement was provided to me: ‘A Whistleblower investigation undertaken at VHA in 2012 involved allegations of a privacy breach that occurred in January 2011.

‘Mr Morrow joined VHA in March 2012, 15 months after the alleged privacy breach. VHA has investigated and advised that it has found no evidence to suggest the matters were brought to his attention. VHA has also confirmed that these matters related to a Whistleblower claim. Whistleblower claims are conducted under strict confidentiality to maintain the integrity of the process and would not necessarily involve the CEO.’



Finally, any further questions on the hacking incident ‘should be directed to VHA.’

So, apologies to Mr Morrow for my cheekiness and thanks to nbn’s spokesperson for clarifying the issue.