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nbn-Confidential: Commercial

The nbnTM network: How Australians are using it nbn CTO Ray Owen F0020-49-1523 // Rev 1.0 // DD/MM/YYYY

This document is provided for information purposes only. The contents, including any views expressed by nbn are indicative only and subject to change. This document is subject to the information classification set out on each page. If no information classification has been included, this document must be treated as ‘nbn-Confidential: Commercial’ and must not be disclosed other than with the consent of nbn. The recipient (including third parties) must make and rely on their own inquiries as to the currency, accuracy and completeness of the information contained herein and must not use this document other than with the consent of nbn.

© 2017 nbn co ltd. ‘nbn’, ‘bring it on’, ‘Sky Muster’, ‘gen nbn’ and the Aurora device are trade marks of nbn co ltd | ABN 86 136 533 741. – Australian parliament

“What is your opinion with regard to the stability of the telephonic art?”

“Am I to understand there have been very little improvement in mechanical construction of the instrument itself since it was originally invented?”

“Is there the possibility of a change that would revolutionize the plant?”

2 F0020-49-1523 // Rev 1.0 // DD/MM/YYYY nbn-Confidential: Commercial © 2017 nbn co ltd. ‘nbn’ is a trade mark of nbn co ltd Putting the nbn network into perspective….

Snowy Hydro Scheme I & II Sydney Harbour Bridge Construction 1949-1972 Cost $15 billion Construction 1923-1932 Cost $2 billion

Sydney Metro National Broadband Network Construction 2010-2024 Cost $20 billion Construction 2010-2020 Cost $49 billion nbn’s targets for 2020 targets are clearly defined

Our purpose Our targets Connect Australia and help bridge the digital divide Our goal 100% 8 $5 + completed million billion positive 8 million homes and Build premises revenue customer businesses connected connected experience by 2020

4 y.1731 congestion detection KAD // Rev 1.0 // 07/02/2018 nbn-Confidential: INTERNAL + RESTRICTED ONLY © 2017 nbn co ltd. ‘nbn’ is a trade mark of nbn co ltd Build and activation progress is on track

Reaching peak construction with 7.3 At 31 December, 95 per cent of 3.6 million premises activated million premises ready for service and premises on the nbn network are with services on the nbn™ 6.3 million ready to connect in design, construction or already access network ready to order a service

Successfully launched our Announced G.fast new Fibre-to-the-Curb technology to enable even technology in Victoria & faster speeds on FTTB and NSW FTTC 5 F0020-49-1523 // Rev 1.0 // DD/MM/YYYY nbn-Confidential: Commercial © 2017 nbn co ltd. ‘nbn’ is a trade mark of nbn co ltd Our nbn network access technologies

Fibre-to-the-Premises Fixed Satellite NGPON2 - 1Gbps to 10Gbps LTE+ 1Gbps Next Gen VSAT

Hybrid Fibre Co-axial Fibre-to-the-Building & Fibre-to-the- DOCSIS 3.1+ Fibre-to-the-Curb VDSL 1Gbps + G.Fast or XG.Fast 100Mbps 6 y.1731 congestion detection KAD // Rev 1.0 // 07/02/2018 1Gbps + nbn-Confidential: INTERNAL + RESTRICTED ONLY © 2017 nbn co ltd. ‘nbn’ is a trade mark of nbn co ltd Our extensive aggregation and transport network

7 F0020-49-1523 // Rev 1.0 // DD/MM/YYYY nbn-Confidential: Commercial © 2017 nbn co ltd. ‘nbn’ is a trade mark of nbn co ltd nbn has scaled it’s system environment

CONSTRUCTION BUILD ENTERPRISE RUN CUSTOMER DATA & ANALYTICS

PARTICIPANTS Customers

Access Seeker Build Exchange & Collaboration Supply Portal Field Tasks/ Devices / API & B2B Real time Analytics Service Portal Government Relations & Delivery Partner Portal 3rd Party

Contractor Portal Channels Infrastructure Board Portals Access Seeker

Channels Data Science Stack Providers API & B2B End- Users Channels Fulfillment Assurance Developer & Co- Developer Portal Finance Mgmt Channels Contact Centre Shared Data Platforms Financials, Risk/Issue & Product Catalog, ITIL Service Mgmt ~5m Access

Design Project Mgmt Contract Mgmt Supply Chain Mgmt Order Mgmt, nbnco.com.au

Partners Service Activation Applications Shared Data Layer Public & & Logical Network Alarm & Seeker Event Mgmt Stakeholders Commercial Settlements Inventory CRM Network Planning & Design & Lease Mgmt StreamTransactions Processing per Construction Network Testing & Partners HR Diagnostics Market

week

Applications Analysis LASA/HECS Mgmt HCM Network & Service Multi -premises ~55,000 Performance Mgt Cabling Health, Safety & Partners activationsEnvironment per Asset Lifecycle Mgmt Cable TV ~900,000 active DEVOPS + ENGG TOOLS Revenue Active Network Providers End User Applications Network Capacity Mgmt

Applications Third Party week Configuration Mgt Technology Billing tests per week

Logistics Service Asset Mgmt, & Suppliers Mesh istio.i Microservice rd Enterprise Information Work & Workforce Mgmt o s 3 Party Platform BI/Analytics Operate & Maintain Data Partners Developers & as a Micros & DWH Container oft Co - Developers Service Physical Dial Before Channels Azure Lam Mgt. Kubernetes Docker Network Inventory You Dig bda

IT SERVICESIT Platforms Document Mgmt GeoSpatial Portal Location Mgmt Arch& < TBC > Portfoli Sparx o EA Security & APIs / Business Content Okt Mgmt. Identity Mgmt. a Mgmt. Conflue Sharepo~120,000 field nce int updates per week SERVICE MGMT NETWORK MANAGEMENT & CONTROL CI/CD Tools PARTICIPANTS

Network Support Element Management Systems Control Applications Service Access Aggregation Wireless Delivery Git Jenkins Ansible Network Support Systems Partners Fibre Copper HFC Wireless Satellite Transport Satellite go.cd OpenShift Terraform Managed NETWORK Service Bambo OpenTracing Providers o Chef Access Transport Aggregation Secret Mgmt. Property Fibre DWDM Aggregation Representative Bodies FTTN/B/C/HFC/G.Fast Agile Tools 3rd Party Managed Backhaul 8 Connectivity & Management Power Wireless Confluence Jira MS Teams Utilities National Connectivity Satellite Direct Fibre The nbn network….

…..by the numbers…

• 63,000 KM’s of fibre in the Transit network

• 2600+ wireless sites

• 2 Satellites

• 125,000 HFC amplifiers and 4,500 nodes

• 3.9 million active end-users

9 F0020-49-1523 // Rev 1.0 // DD/MM/YYYY nbn-Confidential: Commercial © 2017 nbn co ltd. ‘nbn’ is a trade mark of nbn co ltd The complex end-user delivery chain

10 F0020-49-1523 // Rev 1.0 // DD/MM/YYYY nbn-Confidential: Commercial © 2017 nbn co ltd. ‘nbn’ is a trade mark of nbn co ltd NBN Co monthly transparency metrics

11F0020 -49-1523 // Rev 1.0 // DD/MM/YYYY nbn-Confidential: Commercial © 2017 nbn co ltd. ‘nbn’ is a trade mark of nbn co ltd nbn usage continues to grow significantly

Average GB consumed per month per AVC 200

180 187 160 160 140 150.5

120

100 88.8 80

GigaBytes 60 64.7

40 50.5

20 27.9 80.4% 27.5% 36.9% 70% 24.2% CAGR 0 Dec-12 Dec-13 Dec-14 Dec-15 Dec-16 Dec-17 12 F0020-49-1523 // Rev 1.0 // DD/MM/YYYY nbn-Confidential: Commercial © 2017 nbn co ltd. ‘nbn’ is a trade mark of nbn co ltd Daily pattern of nbn usage remains consistent

Traffic Pattern Over the Day (Normalised)

People start Next increase their day off No diminishment in correlates to kids online usage during the getting home from day school

Jun-17 Dec-16 Jun-16 Dec-15 17-Dec

12:00 1:00 2:00 3:00 4:00 5:00 6:00 7:00 8:00 9:00 10:00 11:00 12:00 1:00 2:00 3:00 4:00 5:00 6:00 7:00 8:00 9:00 10:00 11:00 AM AM AM AM AM AM AM AM AM AM AM AM PM PM PM PM PM PM PM PM PM PM PM PM 13 F0020-49-1523 // Rev 1.0 // DD/MM/YYYY nbn-Confidential: Commercial © 2017 nbn co ltd. ‘nbn’ is a trade mark of nbn co ltd Half of nbn traffic from “real time entertainment”

14 F0020-49-1523 // Rev 1.0 // DD/MM/YYYY nbn-Confidential: Commercial © 2017 nbn co ltd. ‘nbn’ is a trade mark of nbn co ltd End-user upstream demand remains limited

15 F0020-49-1523 // Rev 1.0 // DD/MM/YYYY nbn-Confidential: Commercial © 2017 nbn co ltd. ‘nbn’ is a trade mark of nbn co ltd Consumption led by entertainment and browsing

Peak hour traffic composition time series - percentage

50.04%

47.99%

46.78%

44.18%

35.4594%

29.1122%

27.89%

27.4133%

26.62%

24.37%

23.03%

19.61%

19.27%

8.06%

7.74%

7.68%

6.11%

5.30%

5.07%

4.77%

4.28%

3.9820%

3.60%

2.97%

2.16%

1.9931%

1.93%

1.84%

1.78%

1.49%

1.43%

1.1585%

1.02%

0.96%

0.8817%

0.72%

0.69%

0.44% 0.17%

Outside Top 7 Communications Marketplace Tunneling Web Real-Time File Sharing 16 F0020-49-1523 // Rev 1.0 // DD/MM/YYYY Entertainment nbn-Confidential: Commercial Dec-15 Jul-16 Dec-16 Jun-17 Dec-17 © 2017 nbn co ltd. ‘nbn’ is a trade mark of nbn co ltd Congestion free network provides opportunity

The average number of minutes of congestion per week/ per service. This is calculated across all bandwidth purchased by all phone and providers across the entire network (CVC congestion).

17 F0020-49-1523 // Rev 1.0 // DD/MM/YYYY nbn-Confidential: Commercial © 2017 nbn co ltd. ‘nbn’ is a trade mark of nbn co ltd Top 1% of nbn end-users consume over 1TB a month

100%

90% Top 1%: 1058.6GB/Mth 80%

Average: 70% 190.9GB/Mth Top 14% of users drive 50% of Top 34% Value traffic downloads across NBN 60%

50% Median: 40% 107.9GB/Mth • Top User 23.59TB/Mth • Total Traffic per day 28.3TB 30%

20%

10%

0% 0 50 100 150 200 250 300 350 400 450 500 550 600 650 700 750 800 850 900 950 1000 GB/m

18 F0020-49-1523 // Rev 1.0 // DD/MM/YYYY nbn-Confidential: Commercial © 2017 nbn co ltd. ‘nbn’ is a trade mark of nbn co ltd Top 6% of users consume 50% of total uplink

100%

90%

80% Top 6% of users consume Average: 50% of total uplink 70% 17.45GB/Mth Top 1%: 164GB/Mth 60%

50% Median: • Top User 14TB/Mth • Total Traffic per day 2.3TB 40% 6.98GB/Mth

30%

20%

Percentage of Services using less than GB/m than less using Services of Percentage 10%

0% 0 50 100 150 200 250 300 GB/m 19 F0020-49-1523 // Rev 1.0 // DD/MM/YYYY nbn-Confidential: Commercial © 2017 nbn co ltd. ‘nbn’ is a trade mark of nbn co ltd Usage demand by Technology Type

Satellite fair use Policy

Very small differences in fixed line technology

Wireless - slightly degraded compared to fixed line

20 F0020-49-1523 // Rev 1.0 // DD/MM/YYYY nbn-Confidential: Commercial © 2017 nbn co ltd. ‘nbn’ is a trade mark of nbn co ltd Our options for meeting future demand…

Our challenge Footprint Capacity Continue to grow the Upgrade Upgrade network to meet user demand

Technology Upgrade

21 F0020-49-1523 // Rev 1.0 // DD/MM/YYYY nbn-Confidential: Commercial © 2017 nbn co ltd. ‘nbn’ is a trade mark of nbn co ltd Our future technology options…..

CY 2018 2020 2022 2023 and beyond

NG-PON2* (10/10 Gbps) SD-OLT for 25 Gbps Future update to SD-OLT (GPON FTTP for Business Services NG-PON2 NG-PON2 migration)

FTTC G.fast 212 G.mgfast FTTB (5 Gbps at ~70m)

DOCSIS 3.1 DOCSIS 3.1 Plant (spectrum) upgrades, additional DOCSIS 3.1, and Distributed Access Architecture using deep HFC Downstream Upstream Performance improvements fibre, Full Duplex DOCSIS (FDX), or Extended Spectrum DOCSIS using DOCSIS 4.x

4G RAN Capacity Expansions TDD Config & 256QAM

FW 4G Massive MIMO Virtual EPC Backhaul Capacity Expansions (Fibre / ) 5G mmWave

* NG-PON2 includes XGS-PON

22 F0020-49-1523 // Rev 1.0 // DD/MM/YYYY nbn-Confidential: Commercial © 2017 nbn co ltd. ‘nbn’ is a trade mark of nbn co ltd Summary of key messages

• The nbn network build is on target • nbn is actively monitoring the use of the network • Use of the network is growing year on year, with a 35% CAGR since 2012 • Only 14% percentage of nbn’s users generate around half the total downstream traffic on nbn’s network, with just over 6% generating half the total upstream traffic • User experience today in terms of download volume per month - has some limitations on Satellite and • But negligible differences in terms of gross downloads per subscriber in fixed line technologies: FTTN, FTTP and HFC • nbn has plans for how to deliver additional capacity, and is actively engaged in evaluating new technology opportunities

23 F0020-49-1523 // Rev 1.0 // DD/MM/YYYY nbn-Confidential: Commercial © 2017 nbn co ltd. ‘nbn’ is a trade mark of nbn co ltd

The CTO team behind the numbers!

Belinda Wilson Clayton Porter Jamie Atkinson Ingrid Barton Michael Roseingrave Senior Project Manager General Manager IT Architect Solution – General Manager Architecture Architect Solution – CTO Strategy Network Performance and Transit Technologies Network Design Auth

Lawrence Di Stefano Jason Godden James Andis Fiona McGill Daniel Willis General Manager EW Architect General Manager HFC Executive Manager General Manager FTTX Wireless Technologies Technologies Programs and Operations Technologies

24 Document ID // Rev 1.0 // DD/MM/YYYY nbn-Confidential: Commercial © 2017 nbn co ltd. ‘nbn’ is a trade mark of nbn co ltd