NBN abandons plans to use Optus's HFC network

The NBN has abandoned plans to use Optus’s ageing hybrid fibre coaxial (HFC) network, after spending $800 million for the assets.

Instead, nbn plans to use its newest access technology fibre to the distribution point (FTTdp) for up to an additional 700,000 premises.

FTTdp technology will be used in areas where the use of the Optus HFC network was planned, with the exception of an already-launched network in Queensland’s Redcliffe.

It will also considered for premises in areas served solely by the Optus HFC network that had previously been earmarked to receive fibre to the node (FTTN).

In a statement, nbn Chief Network Engineering Officer Peter Ryan said the decision to switch tack was motivated by “the advancements we’ve made in FTTdp, combined with the up-to-date learnings we have on the Optus HFC network”.

Last year, Fairfax Media published details of leaked internal nbn documents revealing that the Optus HFC network was “not fully fit for purpose”. But at the time, nbn downplayed suggestions that the company was considering abandoning the use of the network assets.

Ryan said nbn HFC technology “remains a highly valued part of our MTM deployment”, but has determined that FTTdp is a more compelling option than converting the Optus HFC network to be NBN-ready.

Internet Australia has welcomed the decision to abandon the use of Optus’s HFC network.

“It has long been known that much of Australia’s HCF cabling has not been well maintained and would not be fit for purpose,” commented Internet Australia CEO Laurie Patton.

“In recent weeks it has been revealed that only about a third of the premises where the FTTN network has been built have actually been connected. It is to be hoped that this is the beginning of the industry’s long desired return to building a 21st-century broadband network. The next stage needs to be abandoning the ageing Telstra copper wires in favour of an all-fibre rollout, except in the remote areas where fixed wireless or satellite is the only answer.”

nbn separately announced it has activated 235,000 FTTN connections in the 12 months since commercially launching the product in Belmont, NSW.

A total of 745,000 FTTN premises are now ready for service. Combined with fibre-to-the-building connections, this makes 854,000 premises ready for service across the two technologies.

“To have nearly 750,000 premises ready for service is an outstanding achievement and is a testament to the huge effort made by our team,” Ryan said.

“There is still a long way to go but our great first year with FTTN gives us confidence that we can complete our mission of connecting 8 million homes and businesses by 2020.”

Image courtesy of Stephan Ridgway under CC