NBN Co writes that it has finally achieved its financial goals after continually modifying it until it achieved its struggling business model. Paul Budde..

last week, NBN Co Announcement settlement Fiscal year ending June 30, 2021. It showed that it activated 8.2 million customers. Interestingly, they said this was on target-returning $ 4.6 billion in revenue and $ 3.8 billion in improved net loss.

However, as mentioned in the previous analysis, it’s easy to reach your goal simply by continuing to modify it. In fact, the revenue target for fiscal year 2021 has been significantly revised from $ 5.4 billion to $ 5.2 billion, $ 4.9 billion and the current $ 4.5 billion.

In reality, NBNCo has failed to meet its revenue targets for many years. However, it is completely protected by the government and can be avoided. The company has shown that it needs to reach average revenue per unit (ARPU) $ 54. It’s been around $ 45 and stayed for years, leaving the question of whether that will happen.

If that $ 54 target is achieved, that means prices have to rise further, which will cause even more problems for the industry. On the other hand, if you fail to reach that goal, you will continue to suffer from financial conditions.

But it’s no use crying with spilled milk, even though it’s frustrating.

Concerns about NBN’s “abuse” highlight the failure of the coalition government

Paul Budde writes that many of the long-term problems that plague NBN could have been avoided if it were an entire fiber network.

That said, some of the headline numbers the company has revealed are:

• Total revenue was $ 4.6 billion, up 21% year-on-year.
• Payments to Telstra and Optus decreased from $ 2.4 billion in FY2008 to $ 1.2 billion in FY2009.
• 27%, or $ 1.4 billion in net loss after tax improvement.
• Previous earnings EBITDA (Interest, taxes, depreciation, and profit before depreciation) was $ 1.35 billion, an improvement of $ 2 billion in FY2008.
• Approximately 8.2 million homes and offices are connected to the NBN network, an increase of 13% over the 7.3 million facilities connected in FY2008.
• Capital investment in FY2009 was $ 2.8 billion, a decrease of 45% from FY2008.
• Raised more than $ 8 billion in private debt in the last 12 months.When
• It aims to bring high download speeds to up to 75% of facilities on fixed-line networks by 2023.

There was more NBN news in the last few weeks.

ACCC filed proceedings against Telstra, Optus and TPG

NS ACCC Claims Telstra, Optus and TPG have misleaded consumers beyond NBN’s maximum speed. This isn’t news, but the problem with ACCC companies is that they haven’t fixed Matt for all affected customers after a year. Regulators are currently proceeding in proceedings in federal court.

The problem is that, in violation of Australian Consumer Law, companies have not made the necessary financial modifications to false or misleading expressions in the promotion of NBN plans at approximately 50 Mbps and 100 Mbps.

Overall, hundreds of thousands of consumers have been misunderstood by three major Internet providers who have accepted NBN speed payments that they cannot offer, according to the ACCC.

Paul Budd: “Sufficient”-ACCC is trying to get involved in NBN pricing

NBN Co has announced plans for a price review consultation process in 2021.

Apparently in a hurry in the next proceeding, the three players have now suddenly begun to speed up the “correction”. Let’s see if this is enough to resolve the case.

However, the underlying problem is that NBN Co does not always provide the speed at which customers buy, and Telstra says that, at least in some cases, it does not know the actual speed at which customers will be offered.As mentioned Many times before, This has to do with a mix of different (old) technologies. The problem is only resolved if you have a first class (fiber) network. However, NBN Co denies that it does not provide accurate data, indicating that there is no problem. Let’s hope the arbiters can unravel this mess.

The industry drama was also shown in Telstra’s results. Net profit increased by 3.4%, but revenue decreased by 11.6%. Net profit has increased thanks to significant cost savings, but what we see is that the company is slowly shrinking.

NBNCo Creates 44 New NBN Business Fiber Zones

The day before the financial announcement, the company announced the creation of 44 new NBNs. Business fiber zone.. Beginning in September, Premium Business Grade Fiber will be available on demand to an additional 60,000 eligible business establishments across Australia. Ordering Premium Business NBN gives you free fiber design and construction on your facility. Enterprise Ethernet service..

This also rekindles other issues we have discussed earlier. The business market is a highly competitive market and there are many other providers operating in this market, and it has been debated why taxpayer money is used to serve this market. I did.

This is also Productivity committee If NBN Co actually adheres to the government’s policy of needing to be competitively negative.

Further issues with NBN when executives pay a $ 77 million bonus

NBNCo executives are paying themselves millions of dollars in bonuses as NBN deployments continue to suffer from complaints and cost overruns.

Obviously, the business market is far more profitable than the housing market. Due to the excessive cost of building an NBN in the housing market, the company is in desperate need to leverage other sources of revenue to produce better overall results. That said, small players in the market are pleased that NBN Co has built this infrastructure. This gives you more opportunities to compete with other infrastructure players.

Telephone company wants CVC bailout

Finally, we saw yet another development this week Endless CVC sage (Wholesale price NBN Co used by retail service providers). The RSP has been complaining about this for over a decade, but this time with five players working together to restore a 40% free boost to CVC, with nearly half of Australia’s population blocked. Asked the Minister to intervene and obtain NBNCo. ..

Wholesale pricing systems make the life of a telco very difficult because it is very difficult to predict in advance the capacity needed to serve customers. For the same financial reasons as above, NBN Co will require this additional fee to produce better financial results.

I have my own question about how telcos operate in this market, but the key issue for me is that NBN Co has become a de facto monopoly completely protected from the government and in a balanced market situation. It is hindering the creation.

Paul Budde Independent Australian columnist and Paul Budde Consulting, An independent telecommunications research and consultancy organization. Follow Paul on Twitter @PaulBudde..

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