NBN abandons the Optus HFC network, will instead turn to FTTdP technology

THE NBN has backtracked on a $800 million deal to use Optus’ cable TV network, but it could ultimately be good news for you.

The NBN will roll out FTTdP to a potential 700,000 more homes across the country after abandoning the Optus HFC network.

THE company building the government’s national broadband network has decided to abandon the use of Optus’ hybrid fibre-coaxial (HFC) network and instead run fibre optic cables to the curb of a potential 700,000 premises across the country.

NBN Co committed $800 million in 2011 for the “progressive migration” of subscribers to the NBN network from the Optus HFC network (which was originally rolled out in the 1990s for pay TV) and its eventual decommission.

It was a decision that was met with heavy criticism late last year when leaked documents revealed that the network was “not fit for purpose” and was nearing the end of its life.

A renegotiation three years later between NBN and Optus failed to change the terms of the original $800 million commitment.

After looking at the network it seems the NBN has conceded that fact and will change tack with its use of technology in the Optus footprint.

According to a statement released Wednesday by NBN Co, a technology known as Fibre-to-the-Distribution-Point (FTTdp) will be considered for deployment to select premises that had previously been earmarked for either Fibre-to-the-Node (FTTN) or HFC in areas served solely by the Optus HFC network.

Optus will keep the $800 million it originally received but will miss out on any further deals to manage its network on behalf of the NBN.

The FTTdP connection relies on distribution point units (DPUs) which are about the size of a bible and get buried at the ends of driveways to allow the company to run fibre closer to the home. The technology has been in development until now and has only recently become financially viable.

Its latest inclusion in the rollout may be the result of a bad deal made with Optus but FTTdP technology which relies more on fibre optic cables is a ultimately a better deal for customers as it will likely provide better performance than HFC or FTTN connections.

“We have tested FTTdp over the last year and we’re confident we can now deploy the technology in areas where it makes better sense from a customer experience, deployment efficiency and cost perspective,” NBN’s Chief Network Engineering Officer Peter Ryan said.

“This includes premises in the FTTN footprint that have too high a cost per premises (CPP) and premises served solely by the legacy Optus HFC footprint that are yet to be made ready for service.”

The NBN has long hoped that FTTdP technology could be used as a cheaper way to service hard to reach homes as well as providing a pathway for future upgrades when copper technology is no longer viable.

“When we consider the advancements we’ve made in FTTdp, combined with the up-to-date learnings we have on the Optus HFC network, NBN has confirmed it will deploy FTTdP in those areas where the use of the Optus HFC network was planned,” Mr Ryan said.

The only exception is Redcliffe in Queensland where the NBN has run successful tests and launched its network using the Optus HFC network.

The announcement will no doubt come as vindication for many critics of the Coalition-favoured multi-technology mix NBN which has been criticised for embracing decaying and soon-to-be obsolete infrastructure. But the NBN has long stuck to its motto of being technologically agnostic when it comes to the rollout.

“HFC remains a highly valued part of our MTM deployment, however in balancing the requirements to convert Optus’s current network architecture and design to be NBN-ready, and the opportunity to introduce FTTdp, makes the new technology compelling in these selected areas,” Mr Ryan said.

Optus vice president of corporate and regulatory affairs David Epstein said in a statement: “Optus welcomes NBN’s decision to deploy its newest technology, Fibre-to-the-Distribution-Point (FTTdp), in areas serviced by Optus’ HFC network, outside of the Redcliffe trial area.

“FTTdp provides design flexibility for rollouts in HFC network areas, and should minimise customer disruption in areas where the current Optus and Telstra HFC networks overlap. It is also is a sensible design solution for areas unable to be serviced by fibre to the node technology.

“FTTdp is another addition to NBN’s multi-technology mix and we hope it ensures this important national project can be delivered quickly and efficiently.”