NBN Co Limited has signed an agreement with Syntheo (a joint venture between Lend Lease Group and Service Stream) to upgrade telecommunication infrastructure in every state and territory of Australia ahead of further development for the National Broadband Network (NBN).

The initial $141 million contract with Syntheo allows NBN Co to commence construction of the NBN in South Australia and the Northern Territory. The contract covers the design and construction of the fibre optic network in these regions over the next two years.

A look at the NBN

The NBN project, instigated in 2009, is a Federal Government initiative aiming to connect 93 per cent of Australian homes, schools and businesses to a high-speed fibre network capable of providing broadband speeds of up to 1 gigabyte per second. It will involve installation of infrastructure in 13 million premises across Australia – predominately by fibre, but also using fixed-wireless and satellite.

In September 2011, the town of Willunga in South Australia experienced the successful application of the scheme following its selection as one of the first five release sites for the NBN in that state, designed to demonstrate archetypal fibre-to-the-home deployment in a regional area with dispersed housing.

The residents of Willunga demonstrated the highest take-up rate of any first-release site on mainland Australia, with more than 90 per cent of residents signing up for a free fibre connection.

Ralph Steffens was recently appointed as NBN Co Chief Operating Officer, with overall responsibility for the construction of the NBN in Australia, after he presided over two similar major network roll-outs in Europe.

Mr Steffens expects that by 2015, the NBN satellite network will be operational, with construction completed for the wireless and transit networks.

Minimising impacts

NBN project managers have implemented strategies to incorporate the concept of sustainability in the design and construction of the network, and to minimise its environmental impacts – particularly underground.

These strategies include the adoption of existing infrastructure into the network, and the use of trenchless technology in its underground development; when rolling out the network, NBN Co does not dig unless absolutely necessary.

NBN Co employs trenchless technologies such as directional drilling where possible to install new infrastructure. NBN Co General Manager State Operations Rob Seal told the No-Dig Down Under 2011 Conference that the organisation recognises the significant impact of the network on communities.

Mr Seal told attendees that the company is working with its contractors to develop a low-impact construction scheme.

Directional drilling is one of several methods tested at trial sites around the country, such as Willunga where all construction was underground.

Progress to date

NBN Co has awarded contracts worth up to $635 million for the next five to six years for companies operating in Australia to provide equipment for installation in homes and businesses as part of an NBN connection.

The types of components supplied include internal fibre distribution hubs and terminals, supplied by Corning for apartment blocks and offices; fibre wall outlets supplied by Warren & Brown, which will contribute to housing the connection of the fibre from the street to the outside of premises; and 3M for retrofit cable pathways.

These components will be used by NBN Co and its contractors for free standard installations when residents and business owners order a service from their retail service provider.

NBN Co CEO Mike Quigley says “We have now put in place most of the equipment supply arrangements that we need for the roll-out initially, but plan to go to the market as the roll-out ramps up to source additional suppliers for a range of our equipment needs.”

As of November 2011, a location in Melbourne’s Docklands precinct has commenced operations as a hub for NBN, housing facilities to manage the day-to-day operations of the broadband service to test products and equipment as the NBN rolls out.

Future plans

NBN Co sees 2011–12 as a building phase, in terms of finalising planning procedures and resources needed, as well as getting contractors sorted and in place to “crank the machine up and get it running,” according to Mr Seal.

From 2013–15, NBN Co will implement a construction program in most larger centres in Australia, and in eight to nine years from now will have the broadband network connected in all states and territories – with the exception of Antarctica.

Mr Seal says that while the organisation would have liked to have a satellite connection for the Antarctic area, the angle of the horizon is such that the satellites used cannot reach the location.

During 2012, NBN Co will establish a series of ‘kick-off’ heads throughout Australia. For the next six or seven years, there will be an extensive rollout of fibre to all the communities of Australia.

Telstra will supply 75–80 per cent of cable conduit, with upwards of 2.5 million Telstra lead-ins being utilised, as well as 1,000 of Telstra’s telephone exchangers, where NBN Co will base all active network gear. Telstra customers will be migrated from the copper network and onto the NBN fibre network.

This means that 20–25 per cent of the NBN network will be held by entities other than NBN Co, including access to poles and underground infrastructure from power utilities, water utilities, road utilities, and local councils who own their own pipe and pit infrastructure in place.