Telstra Corporation Limited ACN 051 775 556
ABN 33 051 775 556
4 December 2008 The Manager Company Announcements Office Australian Stock Exchange 4th Floor, 20 Bridge Street SYDNEY NSW 2000
Office of the Company Secretary Level 41 242 Exhibition Street MELBOURNE VIC 3000 AUSTRALIA General Enquiries 08 8308 1721 Facsimile 03 9632 3215
ELECTRONIC LODGEMENT Dear Sir or Madam Telstra NBN Technology Briefing In accordance with the listing rules, I attach a copy of the presentation by Greg Winn, Telstra’s Chief Operations Officer, for release to the market. Yours sincerely
Carmel Mulhern Company Secretary
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Slide 1
NBN Demonstration Briefing
December 4, 2008
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Slide 2
Our Proposal
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Slide 3
Telstra’s NBN Proposal:A World-Class Open Access NBN
• Exceeds government’s requirement of a minimum 12Mbps downstream speed
• Multiple service offerings & Open Access with full equivalence for wholesale customers
• Carrier-grade
• Future upgrade path
Services & Applications
Access Node
NBN
Service Provider Edge
Ethernet
AggregationIP/MPLS
Core
Service Edge
Consumer
Business
Enterprise
Next Generation Network
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Slide 4Slide 4
Delivering the NBN requires end-to-endarchitecture and an integrated business
Operational Support Systems (OSS)
& Business Support Systems (BSS)
National High Speed
IP Backbone
Fibre To
The Node
Node
to Premises
CPE
BUILD
OPERATE
MAINTAIN
End-to-end Service Environment
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Slide 5
Telstra’s OSS & BSS:World class and working today
• Telstra’s IT Transformation commenced in 2005
• For NBN we will leverage the existing Telstra Wholesale capability.
• The IT Transformation involves replacing the hundreds of existing systems with a small number of large specialist packages.
• The aim is to ensure a “1 Click”experience for staff and customers.
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Slide 6
Telstra invests in World-Class National Networks
Speed
Future Upgrade
Coverage
Scalability
Security
Performance
Reliability
ADSL/ ADSL2+
Regional transmission
Integrated
Telstra has ~6 times the coverage areas
Telstra has almost twice as many base stations
Telstra has ~8 times as many DSLAM equipped exchanges
Telstra has ~67 times regional transmission points of presences
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Slide 7
Telstra’s Proposed PoIs:National coverage and equivalence of access
Note: PoI = Points of Interconnect
VDSL2
Access Node
Ethernet Aggregation Point
(EAP)
Direct fiberor SDH
EASPCS
Access Seeker 2- Large
Access Seeker 1- Small
Access Seeker 1 PoI(GE/10GE)
Access Seeker 2 PoI (10GE at each EAS)
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Slide 8
Telstra’s FTTN Proposal: Building the FTTN network requires skills and experience…
Telstra has skilled staff…
• Telstra has in excess of 5,000 field and construction technicians
• Telstra has under its control in excess of 400 fibre jointers and splicers.
• More than 700 experienced Access Network Planners and designers.
Exchange OFTU Fusion Splicer External Enclosure
FTTN Cabinet
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Slide 9
Telstra’s FTTN Proposal:which Telstra can demonstrate today…
requires more than optics and electronics
An Existing Gen 5 FTTN Cabinet
Note: Site in Queensland
Install the Conduit between the
Cabinet and manhole
Pouring the Concrete Footing
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Slide 10
Three Internal Circuit Fans
Three External Circuit Fans
7302 ISAM XD with cover off
CCF on end
External Air Exhaust
Batteries
Dual Rectifiers & Controller
Transformer
External Air Inlet
Trouble LampGPOlimited to 2 Amps
Emergency Power Connection
Emergency Power Cord Access
Telstra’s FTTN Proposal:Our node design is informed by years of real-world experience of the Australian environment
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Slide 11
Node to the Premises:Some believe that the copper access component of an NBN is easy
Customer
O1-100
O101-200
O201-300
O301-400
C2 1-100
Telephone
Exchange
Distribution
Cables
Main
Copper
Cable
100 Pr
Pillar
Tail
PillarFrom this…
…to this
EAP / PoI Site
Main
Fibre
Cable
Node
Customer Phone
O1-100
O101-200
O201-300
O301-400
Distribution
Cables
100 Pr
Pillar
Tail
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Slide 12
Customer
Side
Pillar
Side
Cabinet
Side
Customer
Side
Pillar
Side
Cabinet
Side
Node to the Premises:It isn’t easy. It takes a dedicated focus on the end-to-end service to get it right.
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Slide 13
TelstraNode Pillar Pit
Fibre
Copper pair
Cable sheath
Competitor Node
Telstra Node
• Sub-loop unbundling (SLU) means allowing another party, to gain access to
and take control of Telstra’s copper at almost any point of their choosing.
Exchange / other Pointof Inter-connection
Node to the Premise:Some argue that sub-loop unbundling may be theoretically feasible
EAP / PoI
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Slide 14
Destroys end-to-end fault management capability
Issue
Destroys future upgrade path
Introduces operational complexity & cost
Potentially degraded line performance
Makes complex copper plant remediation more complex
Node to the Premise:In practice it would be a disaster for customers
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Slide 15
Increase speed to 50 MbpsIncrease speed to 50 Mbps��������Service Provider
No unbundling
DSLAM
Collective Interference Management
Service Provider 1
Service Provider 2
Sub-loop Unbundling
DSLAM
�������� Not upgrade optionNot upgrade option
Node to the Premise:Case in point – sub-loop unbundling would remove option to further increase broadband speeds
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Slide 16
Customer Premise & Equipment:As an end-to-end service provider we understand the full range of noise which may impact the customer
1. Copper network 2. Network Interference
3. In-home Environment 4. Neighbourhood
Access Node
Neighbour
1
2
4
Joint
Bridged Tap
Potential High-Speed Access Customer
VDSL23
Bridged Tap
3
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Slide 17
0.00
2.00
4.00
6.00
8.00
10.00
12.00
14.00
16.00
20:00 20:30 21:00 21:30 22:00 22:30 23:00 23:30 0:00
RESYNC
1st Noise increase (neighbor modem)
2nd Noise increase (strong radio signal)
Service interruptionsreinitialization result in minutes of downtime
Service degradation: lower bandwidth due to higher noiseB
andwidth (Mbps)
time
A closer look at a DSL line during prime time (8pm-midnight):
RESYNC
noise
Video affected by packet loss
Service degradationExcessive Packet Loss due to transmission
errors
Service interruptionsSpontaneous DSL line reinitialization
Stable DSL line Video affected by line reinitialization
Stable DSL line
Customer Premise & Equipment:Managing noise is particularly important when offering video services
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Slide 18
High-SpeedCustomers
Neighbour
Telstra’s FTTN Proposal:Our end-to-end service proposal takes into account real-world conditions, with a focus on customer outcomes
Mitigation Approaches
1. Copper network
• Extensive remediation
2. Network Interference
• Potential application of DSM
3. In-home Environment
• Installation of NTD and Central Filter for high-speed services
4. Neighbourhood
• Case-by-case fault resolution
Access NodeNew Cat 5/6
cabling
Existing house wiring
Bridged Tap
Noi
se F
ilter
NTD on the outside wall of the house
NTD: Network Termination Device
VDSL2
1
2
4
Central Filter inside
NTD 3
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Slide 19
100 Years of ExperienceCurrent Case Study: Broadbanding the Top End
• Recently we have installing ADSL in Arnhem land to service remote communities.
• Over 850 km was ploughed and spliced in a matter of months.
• All permits were sourced and all the strict requirements of the National Land Council were met.
• We have first-hand experience with Australian
conditions and the cost involved in providing
telecommunications to regional Australia
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Slide 20
Operating the NBN: We already have a world-leading GOC in place to manage Telstra’s proposed NBN
• Officially opened in 1999, Telstra’s leading edge Global Operations Centre manages the operation of Telstra’s existing fixed and mobile networks.
• Over 2500 people with the capability to monitor and manage the network, end to end, 7 days a week, 365 days of the year, 24x7
• End-to-end monitoring services include:− Assurance of customer services
− Incident management
− Activation of customer services
− Security management
− Change management control
− Major incident management
• Telstra proposes extending the GOC to manage the tens of thousands of nodes proposed by Telstra’s NBN
− Well within the GOC’s scope and expertise, especially given that it currently managed many hundreds of thousands of network elements.F
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Slide 21
Maintaining the NBN:Telstra has the expertise and resources in place to maintain the NBN end-to-end
• Telstra supports its networks with in excess of 5,000 highly skilled and fully equipped field technicians connecting and maintaining Customers on our Network
• All this is coordinated through a World Class dispatch System, proven large scale Construction Project Management.
• Our network surveillance capability has been recognised World Leading and is ready to take on the role of managing a FTTN network
• We can optimise our workforce through the application of the latest GPS devices
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Slide 22
Telstra’s NBN Proposal:Telstra’s considered additional technologies to expand coverage – but judged them outside of scope
• The cost of deploying FTTN increases rapidly as the service density decreases
• Wireless access is attractive from cost perspective,
− can meet the main RFP requirements of 12 Mbps downstream peak access speed
− But does not provide full equivalent capacity, performance & service capabilities compared to FTTN
• Telstra considered two wireless access technology options
− Next-Generation Wireless
− Next-Generation Satellite
• Telstra chose not to include these in its RFP response as wireless broadband is already available commercially to 99% of the population and satellite to 100% of the population
• However we are comfortable to discuss approaches to integrating wireless and satellite alternatives into the proposed NBN with the Government.For
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Slide 23
Conclusion
• Telstra truly believes that our
proposal represents the best
outcome for the Nation and the
Australian people.
• As we noted in our NBN
disclosure last week, Telstra is
ready to work through the
issues with the Government to
enable Telstra to build the NBN
in a timely way, for the benefit
of all Australians.For
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