NBN Rejects Reported Delays And Budget Blow-Outs: 'We're On Track'

NBN has rejected claims of significant delays and massive budget blow-outs revealed in a controversial leaked internal progress report. "We will not be drawn on alleged internal documents," a spokesperson for NBN said in a response to the report. "We report quarterly and our results are audited."

According to the report, obtained by SMH, the NBN has "fallen two-thirds short of its benchmark construction timetable" with connection costs also exceeding budgets, according to the internal document dated 19 January.

The internal report states that 1,402,909 premises should have been approved as of 19 January, although only 662,665 have been reached. NBN has today stated that "as at 18 February 2016, nearly 1.8 million homes can now order a service and more than 800,000 homes are already connected and using the nbn network."

It was revealed in the internal report that 59 per cent of delays — 38,537 premises — come from power approvals and construction caused by electricity companies. 30 per cent of delays have arisen from shortages in materials, and 11 per cent are from completion reviews.

"Construction completions currently sits at 29K against the corporate budget of 94K," the report states. "Gap-to-target has increased from 49,183 to 65,268 at week ending February 12."

"Construction completions gap can be attributed to 3 main issues: power, supply, and completions under review."

"nbn reject claims that the company is at risk of not meeting its targets, nbn has met or exceeded every key target for six quarters in a row," today's statement reads. "The company's management has proven repeatedly that it can effectively monitor risks and manage those risks."

The internal report also showed a rise in the individual connection cost of the FTTN service. With a "target price" of $1114, this has risen by 23 per cent to $1366.

The overall cost of the NBN has risen from an intended a $29.5 billion, to above the cost Labor's FTTP model with a proce tag of $44.9 billion that was described as "needlessly extravagant and unaffordable" by Malcolm Turnbull.

"Despite Design Commencements remaining above budget, all other significant milestones of FTTN continue to remain behind target," the internal report stated.

NBN, however, says "the company is on track to meet or exceed its full year targets of 2.6 million homes Ready For Service, approximately one million homes using the network, and more than $300 million in revenue."

"We're now tracking over 10,000 new activations a week. By the end of this financial year we’re on track for nearly one in four homes to be able to order an nbn service and by June of 2018 this is set to grow to three in four."

"This is an incredibly complex project unlike any infrastructure build anywhere in the world."


Comments

    “This is an incredibly complex project unlike any infrastructure build anywhere in the world.”Wait, it is! Last I checked FTTN required a simple node to be spliced into an existing network, I would honestly consider LinkNYC to be more complex than the nbn.

      Well they didn't actualy say it was more complex than any other build, they just said it was incredibly complex and UNLIKE any other build in the world.

      And I guess they've got a point there both in terms of the ratio of population to land mass that we have in this country (certainly much less densely populated than NYC!). And also the fact that most other countries probably wouldn't have turned it into a political football and ended up with the worst possible solution for the maximum amount of expenditure just so one set of goddamn imbeciles can score political points against the other group of goddamn imbeciles.

      Last edited 29/02/16 9:41 am

      That quote alone says it all. What was a relatively simple project has become incredibly complex. You need to maintain this afterwords and pay for new technology to make the old work. This quote alone says the LNP NBN is a disaster

      You're assuming that they do nothing with the existing copper before cut over. That is incorrect.

    Meanwhile my estate sits in "construction not started" limbo in an already completed Suburb of FTTP

      lol was in the same situation as you.

      I had to wait over 7 months until I could get internet, turns out the developer stuffed up - it's actually quite common

        My estate is over ten years old. We had NBN guys in the street 2 years ago preparing to install FTTP then nothing. I contacted NBNco last month and was told we are now in the roll-out ending 2018 (roll-out started in 2012 in our suburb) and that we'll now be getting FTTN.

    The National Botched-up Network. There is nothing new in this article. Monkeys are still banging rocks together.

    The thing that annoys me the most about the NBN is it is one court and fence line away from my house and when I go to the shopping centres I see signs everywhere say it's available, but I get told it's not by providers. At least have it completely in a suburb first before you tell everyone in the suburb that it's available.

      Dont worry mate, most of us are in the same boat, My area is about a year and a half behind schedule and no one can provide an expected time frame with the only response iv had being 'It will be done when its done, now stop asking', im also over getting letters in the mail saying "NBN is available in your area, sign up now!" only to be lol'd at by TPG asking why im trying to sign up for an NBN plan in a non NBN area.

    Do they just mash the keyboard number pad when they need a figure of how many premises are connected or what?

    lol. No delays at all. Definitely not unterminated fibre hanging in my basement for two years. No way sir.

      My friend had telstra come round and put new shinny white plastic boxes on the front walls of houses. But there's like no cables coming in or out of them.

      Last edited 29/02/16 4:55 pm

        I think the entire reason we've waited two years now is we wont be getting shiny white plastic boxes. FTTB eventually. Goddamn MTM. We could of had fibre years ago, now we're waiting for an inferior technology to be tested and rolled out.

        Last edited 29/02/16 8:14 pm

    2kms out of Adelaide CBD and still nothing, thanks for the pair gain and no sign of NBN.

      5 kms east of Melbourne CBD and my street has nothing and no sign whatever as to when the NBN might get there if ever ...

    Lives in the heart of the cbd. NBN coming in 2015... I mean, 2016. No wait, 2018!

    Yep no delays here...

    Can we have a revolution already and throw all these monkeys out of Parliament?

    Did anyone expect anything different? Ofcourse FTTN was going to require so much re-work that it was going to be worse. FTTP was a much cleaner rollout

    Bottom line...the NBN will always cost more than what the politicians tell us it will. I honestly don't think anyone is really upgrading the exchanges or sub exchanges and that will hurt the NBN in the long run. Has anyone heard anything about the NBN upgrading the exchanges yet?

      Um, Yes. Lots and Lots of them. As in all of them. I think the only ones that won't be upgraded will be the ones that have been built recently.

    It's easy to say you're "hitting or exceeding your targets" when you're constantly revising them down and lowering expectations. Incompetent morons.

    Would be nice to start a Kickstarter campaign to rollout a community driven FTTP with a rollout strategy that makes sense for the long-term and has strict transparency over every aspect of the construction and running. Focus will start in the most requested areas for connection, then spanning out like a tree following the requests. eventually everyone who wanted the FTTP will get it and those who want it later, can get it for free with no time restrictions.

    The idea of having it free later is that the subscription that the owner(s) pays will most likely be paid back regardless on a setup cost and will reduce unused connections to those who immediately aren't interested. Also no matter where you reside in Australia, you will always have the NBN ready to use, even in the middle of nowhere and if a town rapidly grows, it's very easy to connect them onto the NBN (this may be a little radical if you spend $1m running fibre etc for one property :-X).

      You do realise that what you are describing would be far more expensive than anything the NBN is doing, right?

        Apart from running fibre into the middle of nowhere for the very few who would need it, supply and demand of fibre where needed as FTTP would, I cant see how much different it would be to the NBN except focusing on supplying on those who are going to use it.

        I forgot to mention the network will run off the existing POP's and dark fibre.

          So you're going to run all new conduit to entire suburbs, for less than NBN Co has has to pay?

    All the argument about cost is politics. The truth is that it will cost NOTHING. It was going to pay for itself with subscriptions from us over a period of time. The cost BS was just a scare tactic used by the LNP monkeys for anyone over 50 and the rusted on conservatives. 'OOOOH LOOK those wasteful Labor hippies are gonna spend our tax money, and repeal our negative gearing and super benefits for the rich'.

    I hate the idiots in this country that believe the crap coming out of the commercial news networks with vested interests in not letting the NBN go ahead. Uncle Rupert is laughing all the way to his golden plated Caymen Islands bank.

    Grow a brain people

    As soon as Telstra/Optus release DOCSIS 3.1 NBN will be a redundant concept.
    The whole thing is just a retarded idea and they should have spent a fraction of what they are enabling market competition with more players. The speed was always going to come as technology progresses, provided the big/fat/lazy telcos aren't allowed to sit on current tech and not make improvements because there's nobody to challenge them.
    Then there would have been ample govt. funds to provide quality services to the non-profitable areas the others won't service.
    What happens when the next level of tech comes around, a private player deploys it and the NBN becomes a worthless govt. asset, who pays for those losses?

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