Highlights of the NBN Annual Report 2015-2016
NBN Co.’s Annual Report for the Fiscal Year 2015 to 2016 marks their commitment to global quality standards in delivering the fastest and most reliable broadband service across Australia. The NBN is considered as the country’s biggest and most comprehensive infrastructure project so far. Results of its operations for this year were summed up in this report, led by statements by top ranking NBN Officials.
NBN Chairman Dr. Ziggy Switkowski AO and Chief Executive Officer Bill Morrow presented the current standings and achievements of the NBN Co. This year saw the company maintaining global quality standards and keeping on track with set goals, while working on the current roll out campaign to bring NBN around the country.
|Chief Executive Officer Bill Morrow||Chairman Dr. Ziggy Switkowski AO|
The standard stays at an average 25 Mbps (downloads) to all connections, with a 50 Mbps standard for all fixed line connections. The projected end goal is 8 Million homes and businesses activated by 2020. Currently, it has hit beyond the 3 Million mark. Statements from the Chairman and CEO, as well as the board of directors point to an upswing of all their current metrics.
The Board of Directors reiterated the NBN Co.’s Five Strategic Imperatives as one of the important elements of the Director’s Report:
1. Build a high performing and reliable network
2. Build effective and efficient processes and systems
3. Build a united partnership with vendors, Delivery partners, and Retail Service Providers
4. Build affordable products and services
5. Make NBN a great place to work
These points are the main focus for NBN’s operations and roll out campaign. They are the main objectives in order to achieve these goals with respect to all that are involved in NBN, from the company, employees, business partners, and all subscribers.
Key FY2016 targets that were met and exceeded include:
* Ready for service achievements posted at 2,893,474 premises, which is up by 138% from last year
* Activations up to 1,098, 634 premises, with 126% increase
* Upward trend for revenue, in excess of $421 Million
* ARPU or Average Revenue per User of $43
* Employee Engagement up to 68%
* Customer Experience rating up to 7.2
NBN is available in different formats for different situations
To fully service many diverse parts of the country, the emphasis remains in using a Multi Technology Mix of NBN formats. It depends on suitability based on subscriber location, and what is the most feasible at the moment.
The primary format is the Fixed Line, available in variations of FTTP (Fibre to the Premises) which is a pure fibre connection, followed by Fibre to the Node and other similar part fibre, part copper connections; and Hybrid Fibre Coaxial which uses existing copper TV network facilities with the fibre connection. It has two wireless formats: Sky Muster Satellite NBN, and Fixed Wireless, majority of it used for rural and distant locations.
The breakdown of the share of NBN formats in the current user market, based on 2.9 Million total count is as follows: FTTP takes the top spot at 1.3M, followed by FTTN at 662,729, Fixed Wireless 420,524, Satellite at 409, 524, and finally HFC with 18, 462.
The key statement is to “Progress against our goal” – To improve further from all FY2016’s achievements. These present achievements have become new goals to be surpassed for the next fiscal year.
Among these is the annual revenue target of $4 Billion, while hitting the customer experience metric of 8, both by 2020. It will also prioritise the efficient use of Government funding in the current building of the NBN network, and continue the increase of employee engagement to maintain peak performance.
As a result, currently two thirds of Australia is now connected, or in the planning and installation phases, with premises with a ready for service status already doubled. Current application ratio also confirmed that more than one in four people can now get NBN service installed.
NBN from Space: The Sky Muster II, set to launch 5th of October, was delayed due to weather conditions.
Aside from wider Fixed Wireless presence, Satellite NBN also made headway as the first Sky Muster is in orbit and fully operational, with Sky Muster II to follow in October, and projected to increase wireless NBN and Satellite NBN market share in the next few years. This forms the wireless contingent of NBN and is seen to grow as confirmed by its current aforementioned metrics.
Activations more than doubled for this year across all regions, with a Ready for Service footprint twice its number in one year and with three product launches made this year. As a result, broadband data usage for NBN subscribers increased with downloads up by 34% more. It was also the ninth consecutive quarter of meeting and exceeding targets, which shows continuous progress as well with the set goals all met per each meeting so far.
Within the company, employee engagement increased, which reflects better employee and employer relations and job satisfaction. This has enabled the company to meet their FY2016 (Fiscal Year) targets while maintaining employee engagement in the top quartile rankings within Australia and New Zealand businesses.
Financial performance for the FY2016 was also presented. It shows positive increases, with total assets up to $18.6 Billion, with a funded capital expenditure of $4.7 billion used in the current NBN expansion. There was 126% increase of activations, as well as a 7% increase for ARPU, and 157% revenue increase in total.
Risk Management was also highlighted in order to avoid issues from happening beforehand. This is used as a safeguard while achieving these goals annually using the strategic imperatives and policies set before. These are based on three risk management policies for their operations, namely:
* Meeting the scale challenge
* Management of partners
* Competition, revenue and regulatory
Other matters presented in the report included details of inside operations in their Remuneration report, particularly with their Chief Executive Officer and the Senior Executive Team. The People and Remuneration Committee exists as to maintain policies in benefit to capable and talented employees with regards to their performance, assessment and management.
NBN’s corporate governance statement was also included, which constitutes staying within standards and requirements of three main entities: The Government, Regulatory and Legislative requirements, and market practice. All of these enumerate key practices and policies not only for performance and quality, but workplace policies and standards that adhere to global standards and humane work environment policies as well.
The Financial report disclosed key earnings, profits, and losses. This included assets and liabilities, physical properties for operations, employee benefits, equity, among other financial statements. Key numbers currently stand at $421 Million total revenue, $15,223 Million for Property, plant, and equipment and a total contributed equity of $20, 275 Million.
The Regulatory report was also presented in keeping with NBN’s practices of adhering to applicable laws and regulations both government law imposed and within global standards. Specific laws and regulations as stated:
• Public Governance, Performance and Accountability Act 2013;
• Corporations Act 2001;
• Freedom of Information Act 1982;
• Work Health and Safety Act 2011;
• Superannuation Benefits (Supervisory Mechanisms) Act 1990;
• Environment Protection and Biodiversity Conservation Act 1999
The NBN policies in place also take in consideration main fields such as Health, Safety, and Environment, Environment Protection, Biodiversity Conservation, Freedom of Information, and Privacy and access to personal information. The report shows NBN Co.’s commitment to these policies and aims to maintain the same for each year. As a guide, a short Glossary is appended at the end of the report in order to make clear any and all terms used, including technical jargon, abbreviations and all other information.