Our commitment to deliver on the Government mandate to ensure all Australians have access to fast broadband as soon as possible is demonstrated through the results announced today.
The NBN Co team, along with our delivery partners, equipment suppliers, and retailers have been working tirelessly to bring us to beyond the half-way built milestone, and setting us up to double our revenue for FY18.
Our efforts were combined with an extensive program of works to improve the experience for those connected to the nbn™ access network, with early signs of improvements.
We’ve made solid progress against our 2020 targets in the FY18 financial year as we work to deliver the network to Australians as soon as possible.
8.1 million premises were ready for service at 30 June 2018, with three quarters of build construction complete across Australia. There were also seven million premises ready to connect, and more than four million homes and businesses that made the switch to the nbn™ access network by activating a service through their preferred retailer. To put that into perspective, due to the efforts of everyone across the company and retailers, we added 1.6 million premises in the past 12 months.
The increase in activations helped us almost double revenue this financial year. Total revenue increased from $1 billion in FY17 to $1.98 billion at the end of FY18, with monthly Average Revenue Per User lifting from $43 to $44 in fiscal 2018. This was solid performance against our 2018-21 Corporate Plan target.
Beyond the progress of our key metrics, we successfully introduced Fibre-to-the-Curb to the Multi-Technology Mix.
Through the flexibility of the MTM, and proven effective processes developed through our learnings over the years, we will continue to progress the network build across our vast nation.
As we expand the network footprint, we’ll continue to increase revenues as more Australians make the switch to the nbn™ access network.
We have listened more closely to the end users and the industry, and made some important changes this year, most notably on improving end-user experience.
Improving end-user experience requires the cooperation of the entire industry, as there are so many factors that contribute to a good broadband experience. For the factors we control, we have worked hard implementing a program of work to address the key pain points.
That work remains ongoing and, although we’ve seen some strong improvement this year, we know there’s more work to do.
In late November, we made a tough decision to pause sales on the HFC network so we could conduct optimisation works to improve performance on the network – we are already seeing the benefits of that work.
This decision had some short-term impacts to our performance against build and activation targets outlined in the 2018-21 Corporate Plan, but we know they were the right decisions to help ensure connected users are having a good experience across the nbn™ access network.
We also announced new wholesale discount options to help incentivise retailers to support improvements of the end-user experience, and implemented a Fixed Wireless capacity upgrade program to reduce congestion for regional Australians.
We report monthly on a series of metrics so all Australians can see our progress. When we compare where we were at the end of the 2017 financial year, we can see some significant improvements.
The commitment to improvements in customer experience will remain an important priority for the company moving forward. Sustaining scale is our second priority, continuing the momentum of the network deployment and customer connections to deliver a quality network and an expanded customer base. And finally, our third priority is to be disciplined on costs so we can keep the price of our wholesale product as low as possible while providing economic return to our shareholders.
1,2. Cumulative number of premises ready to connect and connected homes and businesses.
3. The percentage of homes and businesses that have their nbn™ equipment installed without additional work from NBN Co the first time the installation is attempted. Typically NBN Co excludes end-user cancellations, end-user or RSP initiated reschedules, end-user premises ‘shortfalls’ and other things outside of NBN Co's control such as bad weather. This measure covers the installation of equipment that does not require more than one appointment. It does not cover successful connections to a plan over the nbn™ access network through an RSP.
4. The percentage of premises that NBN Co connects to the nbn™ access network within its agreed service level timeframes with phone and internet providers. The agreed service level varies by nbn™ access network type and available infrastructure at the premises. The Wholesale Broadband Agreement (WBA) includes provisions around calculation and time measurement. This metric does not include Priority Assistance Connections or Accelerated Connections.
5. This metric reflects the estimated monthly average percentage of homes and businesses that experience nbn™ access network congestion (as per NBN Co’s congestion measures for Fixed Line networks). Congestion metrics vary between Fixed Line technologies. These are calculated based on the utilisation of certain parts of the nbn™ Fixed Line access network that are shared by RSPs. The speeds actually achieved over the nbn™ access network also depend on factors outside NBN Co's control including your equipment quality, software, signal quality, broadband plans and how your RSP designs its network.
6. Percentage of time the nbn™ access network is available and operating. This is calculated per NBN Co's agreed service levels with phone and internet providers. This excludes planned network outages and has been rounded to the nearest one decimal place. The WBA includes detailed rules for defining and measuring network availability and includes a number of exceptions such as planned outages.
7. The percentage of time NBN Co resolves faults within its agreed service levels with phone and internet providers. This measure tracks individual service faults, not network related faults which are tracked separately. The measure also excludes faults not related to the nbn™ access network. The agreed service levels vary depending on the location of the premises, and are different for the Sky Muster™ satellite network. The Wholesale Broadband Agreement (WBA) includes detailed rules for defining "nbn™ faults" and measuring nbn™ access network performance. This measure does not include Priority Assistance Faults or Enhanced Faults.
8. The number of faults on the nbn™ access network per 100 premises per month. This measure tracks individual service faults, not network related faults, which are tracked separately. It excludes faults not related to the nbn™ access network.
9. The average number of minutes of bandwidth congestion per week, per service. This is calculated across all bandwidth purchased by all phone and internet providers across the entire network (CVC congestion). Please note that while bandwidth congestion is caused by the level of provisioning of capacity by the phone and internet provider, there are also other types of congestion, which may occur on the nbn™ access network.
10. This includes wholesale plans available to Retail Service Providers (RSPs) with download speeds of 50Mbps and 25–50Mbps. The nbn™ access network is being designed to provide these peak speeds to NBN Co’s Retail Service Providers at NBN Co network boundary. The nbn™ wholesale speed tiers available to RSPs vary depending on the nbn™ access network technology in your area. Your experience including the speeds actually achieved over the nbn™ access network depends on the network type, technology and configuration over which services are delivered to your premises. Your experience will also be affected by some factors outside our control including your equipment quality, software, signal quality, broadband plans and how your phone and internet provider designs its network.