Cost felled NBN’s Optus conversion

NBN will continue its project to upgrade Telstra’s HFC network, but converting from Optus was considered too expensive.

NBN has abandoned plans to upgrade the Optus HFC network for its fibre rollout and will instead pioneer a new fibre to the kerb technology.

Optus will still collect its promised $800 million payment to transfer customers from its HFC network to the NBN.

NBN will continue with plans to upgrade the Telstra HFC network but converting the Optus network was considered too expensive.

Telstra is collecting $1.6 billion to help design and construct the upgrade on its network on top of the $98bn in compensation for transferring its copper customers to the new network.

Next year it will trial the new fibre to the distribution point technology with a rollout to some 700,000 homes due in 2018.

This service will cover the 450,000 Optus users.

The change will also mean NBN can test whether the fibre to the curb service makes more sense to use in other locations.

NBN will use the Optus HFC service in redcliffe neare Brisbane, where the service is already up and running.

In a statement NBN engineering chief Peter Ryan said the rollout “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.”

“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, with the exception of the already launched network in Redcliffe, Queensland,” he added

Ryan said “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.”

In a statement Optus said it “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” it said.

“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,” it said.