{"id":6529,"date":"2012-10-22T12:01:19","date_gmt":"2012-10-22T01:01:19","guid":{"rendered":"http:\/\/michaelwyres.com\/?p=6529"},"modified":"2012-10-22T12:01:19","modified_gmt":"2012-10-22T01:01:19","slug":"nbn-revenues-provide-interesting-calculations","status":"publish","type":"post","link":"https:\/\/michaelwyres.com.au\/mwdc\/2012\/10\/nbn-revenues-provide-interesting-calculations\/","title":{"rendered":"NBN Revenues Provide Interesting Calculations"},"content":{"rendered":"

There were some very interesting revenue figures released as part of NBN Co’s Annual Report 2012<\/a> last Friday.<\/p>\n

\n\n \n
NBN Co Pulled In AU$2M In 2011-2012<\/td>\n <\/tr>\n<\/table>\n<\/center>\n<\/p>\n

“NBN Co has reported revenues of AU$2 million for the first year of commercial operations for the 13,536 premises connected to the National Broadband Network (NBN), ending June 30, 2012.”<\/p><\/blockquote>\n

The NBN when completed is designed to cover approximately 12 million premises. If NBN Co can deliver $2 million in revenues over 13,356 premises, lets do some simple maths with the currently factual numbers.<\/p>\n

<\/p>\n

Presuming a 75% uptake of NBN services across the twelve million premise footprint – (ie: nine million premises take up a service) – if 13,356 premises deliver $149.74 each – (to total two million dollars in 2012) – then nine million premises – (at the same rate) – would deliver a revenue flow of $1.34 billion.<\/p>\n

Furthermore, it is likely that the annual per-premise revenue will be higher than $149.74, because many – (in actual fact, most) – of those 13,356 premises would not have been connected to the NBN for the entire 12 months covered by the annual report.<\/p>\n

Given that the base wholesale NBN pricing is $24.00 per month, theoretically, the minimum<\/i> annual per-premise revenue should be 12 times that figure, or $288.00 – which is more than double the figure in the annual report.<\/p>\n

Nine million premises, at $288.00 per premise gives a revenue flow of $2.52 billion.<\/p>\n

Not bad for a “white elephant” that will never pay for itself! It should also be pointed out that NBN Co didn’t start charging ISPs until October 2011.<\/p>\n

I also suspect a lot of people will say something like “75% uptake? They’re not even close to that!”.<\/p>\n

Sure. That is true – right now.<\/p>\n

But as Telstra gradually decommission the copper network within the NBN fibre footprint, people on the existing copper network – (even if it is just for a telephone service only) – will necessarily need to be transferred to the NBN by their service provider to continue that service.<\/p>\n

Given also that it is possible to have more than one service per premise<\/a>, it is technically possible for take up to go beyond<\/i> 100 percent.<\/p>\n

So 75% might actually be a very cautious estimate.<\/p>\n

It is<\/i> making money, and based on these current revenues, a completed NBN should be making a lot of money for a long, long time.<\/p>\n","protected":false},"excerpt":{"rendered":"

There were some very interesting revenue figures released as part of NBN Co’s Annual Report 2012 last Friday. NBN Co Pulled In AU$2M In 2011-2012 “NBN Co has reported revenues of AU$2 million for the first year of commercial operations for the 13,536 premises connected to the National Broadband Network (NBN), ending June 30, 2012.” […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[100,368],"class_list":["post-6529","post","type-post","status-publish","format-standard","hentry","category-technology","tag-auspol","tag-nbn"],"_links":{"self":[{"href":"https:\/\/michaelwyres.com.au\/mwdc\/wp-json\/wp\/v2\/posts\/6529","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/michaelwyres.com.au\/mwdc\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/michaelwyres.com.au\/mwdc\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/michaelwyres.com.au\/mwdc\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/michaelwyres.com.au\/mwdc\/wp-json\/wp\/v2\/comments?post=6529"}],"version-history":[{"count":0,"href":"https:\/\/michaelwyres.com.au\/mwdc\/wp-json\/wp\/v2\/posts\/6529\/revisions"}],"wp:attachment":[{"href":"https:\/\/michaelwyres.com.au\/mwdc\/wp-json\/wp\/v2\/media?parent=6529"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/michaelwyres.com.au\/mwdc\/wp-json\/wp\/v2\/categories?post=6529"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/michaelwyres.com.au\/mwdc\/wp-json\/wp\/v2\/tags?post=6529"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}