The latest NBN costings show the cost of the copper-based network has fallen by an average of 8.5 per cent in the past 12 months, with the cost for the fibre-to-the-node network continuing to rise.
However, the price of the fibre to the premises network is forecast to increase by an additional 1.5 to 1.75 per cent this financial year.
The NBN Co board is expected to release a new costings in the coming weeks, and analysts expect that the cost per customer will continue to climb.
The latest NBN costs are published today by NBN Co’s costing group, which tracks all of the services and equipment required by the network.
The latest figures show that the fibre optic backbone network is set to continue to grow at a rate of 1.2 per cent per annum from 2016-2020.
The price of each package of fibre optic lines is projected to be higher in 2020 than it was in 2015-2020, which is the year the network began to be rolled out.
The cost of each fibre optic line has risen by an estimated $2.3 billion since the NBN Co was founded, with each line costing an average $1.75 million.
The average cost per line is expected in 2020 to be $2,092.30.
The company’s costings are a snapshot of how much the network is costing the taxpayer each year.
However there are some key differences between the two numbers.NBN Co’s costs are calculated by dividing the total cost of a bundle of lines by the total number of customers the network can serve, and by dividing that number by the number of subscribers.
In this way, the cost to taxpayers of the NBN can be divided by the cost it is paying for each individual customer, or customer.
This is an important fact because it is not a simple cost-per-serve calculation.
The company calculates a cost-for-servers ratio to work out the actual cost to the taxpayer.
The number of premises connected to the NBN network is also considered, as is the total network infrastructure required to support the network at any given time.
The current cost of NBN Co is $1,085.85 per subscriber per month.
However the cost could go up as the network expands to support more customers.
As the network has grown, NBN Co has found it is also adding new services to the network, which are designed to make the network more reliable and efficient.
The NBN Co costings reveal the cost is increasing each year, with costs for the FTTP network, fibre to a node and fibre to copper (FTTN) network all expected to increase at a faster rate.
Fibre to the node network costs will increase by a further 0.5 cents a month per customer, according to NBN Co. The cost of fibre to fibre to node will increase to $2 per user by 2020.
It is expected that the FTTN network will see the biggest increases in the future, with NBN Co estimating it will cost $5.40 per user per month in 2020, compared to $4.40 today.
Natel’s fibre to home network, on the other hand, will continue its growth rate.
This will be driven by the introduction of a number of FTTP packages, including the $39.95 Fibre to The Node package.
The FTTP package is a Fibre To The Premises (FTTP) service which is expected have a cost of $5 per user, up from $3.25 today.
NBN will also continue to add fibre to local area (LAN) services.
The rollout of the FTTB service is expected be finished in 2021, and the company says that by then the network will be providing speeds of 1 Gbps (one gigabit per second) to the majority of premises.
Fibres to the Node and FTTB services are expected to provide speeds of 50Mbps (gigabits per second), and 100Mbps (two gigabits to the core) by the end of the decade.
Nokia will continue providing the same FTTP service for a further year.
NBN Co said the new fibre optic network will continue delivering speeds of up to 5 Gbps.NTSB chief executive Andrew Broad has said that NBN Co will deliver faster broadband for the majority and for the first time in Australia.
“The NBN will be the fastest broadband network in the world by the time this Government delivers its next budget,” Mr Broad said.
“NBN’s network will deliver more than 30 per cent more broadband than the previous generation.”
“This is our biggest ever upgrade to our network, delivering over 200 gigabit per second (gbps) per month and faster speeds to nearly 90 per cent of premises.”
Mr Broad said that the new network will support more than 100,000 premises and will allow NBN Co to reach more people than it ever has before.
According to NBN Australia,