NBN Co in catch-up mode to meet own rollout targets
Only 72,400 premises had been passed by the end of December after 18 months of fibre roll-out, according to figures it released on Monday. This means that, to meet its own targets, NBN Co needs to pass another 268,000 premises in the next five months.
The company's aim is to pass 341,000 new and existing premises with fibre-optic cable by June.
The chief executive, Mike Quigley, vowed to improve the speed of the the roll-out in the second quarter of the year.
He said the slow connection rate was a reflection of progress in "the early stages of the rollout" and he blamed delays on difficulties in sorting out contractual agreements that it must sign with companies such as Telstra.
He promised a rapid acceleration in the rollout during the second quarter of the year.
"The rollout is not a linear progression, but a rapid ramp-up. We are targeting to pass more premises in the final quarter of the financial year than we will have passed in the entire project up to the beginning of that quarter," he said.
"Additional construction resources will be added over the coming months to help achieve these targets."
NBN Co defines passed premises as where cable has been laid in the street but houses are yet to be connected.
The company expects to pass more than 50,000 premises next month, according to its figures. It predicts a rapid acceleration of the roll-out, from close to 100,000 premises in March to about 150,000 in April.
In May, the company hopes to pass more than 200,000 premises, reaching its target in the final month of the financial year.
The opposition communications spokesperson, Malcolm Turnbull, was quick to dismiss NBN Co's definition of "premises completed or under construction".
"Construction begins according to the NBN Co without anyone even putting a crowbar into the ground. It begins 'when NBN Co issues contract instructions to its contractors for a Fibre Service Access Module'," he said on his website.
Frequently Asked Questions about this Article…
NBN Co is aiming to pass 341,000 new and existing premises with fibre-optic cable by the end of the financial year in June. By the end of December it had passed 72,400 premises, meaning it needs to pass another 268,000 premises in the remaining months to meet that target.
NBN Co's chief executive, Mike Quigley, says the slow connection rate reflects 'the early stages of the rollout' and has been held up by delays in sorting contractual agreements with third parties, including companies such as Telstra.
NBN Co defines a 'passed premises' as a location where fibre cable has been laid in the street but individual houses are yet to be connected. For investors this matters because 'passed' does not equal a completed customer connection—it's an intermediate milestone in the rollout.
NBN Co says it will rapidly accelerate the rollout in the second quarter by adding additional construction resources. The company expects more than 50,000 premises to be passed next month and forecasts a ramp-up from close to 100,000 in March to about 150,000 in April and more than 200,000 in May.
Opposition communications spokesperson Malcolm Turnbull criticised NBN Co's definitions of 'premises completed or under construction', arguing the company counts progress before physical work begins—saying construction is recorded when contract instructions are issued rather than when a crowbar hits the ground.
Yes. The article notes that NBN Co has blamed part of the rollout delay on difficulties finalising contractual agreements with companies such as Telstra, so progress depends on resolving these third‑party contracts as well as ramping up construction resources.
NBN Co describes the rollout as non-linear and expects a rapid ramp-up in the second quarter. Its public projections in the article were to pass around 100,000 premises in March, about 150,000 in April and more than 200,000 in May—figures investors can compare with monthly updates to judge realism.
Investors should watch NBN Co's monthly 'passed premises' figures, public comments from CEO Mike Quigley about ramp-up and resource additions, progress on contractual agreements with partners like Telstra, and any political scrutiny or commentary such as that from Malcolm Turnbull that might highlight reporting or execution issues.
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