Also reported strong business revenue despite “challenging” conditions.
NBN Co has revealed the new tranche of areas receiving upgrades to their fibre-to-the-node (FTTN) connections to fibre-to-the-premises (FTTP).
The network provider revealed the upgrades last year as part of a $3 billion network upgrade project following the completion of the initial rollout towards the end of 2020.
The following areas across Australia will be eligible for upgrades, covering some 100,000 premises.
- Girrawheen, Kingsley, Wanneroo (WA)
- Canning Vale, Jandakot South (WA)
- Elizabeth, Gepps Cross, Sailsbury (SA)
- Golden Grove (SA)
- Deep Park, Sydenham (VIC)
- Berwick South, Cranbourne, Narre Warren (VIC)
- Campbelltown, Elderslie, Narellan (NSW)
- Maitland, Singleton, Tarro, New Lambton (NSW)
- Bathurst, Orange (NSW)
- Albany Creek, Ashgrove, Bald Hills, Ferny Hills (QLD)
- Townsville (QLD)
- Robina, Burleigh Heads (QLD)
The first tranche of upgrades were revealed in October 2020, also covering some 100,000 premises across the country.
Also coinciding with the announcement was NBN Co’s financial results for the six months ended 31 December 2020, or the first half of the 2021 financial year.
NBN Co revealed it has posted better-than-expected revenue from its business customers despite what it calls “challenging” business conditions.
For the first half of FY2021, the network provider earned business revenue of $397 million, up 25 percent year over year from $319 million.
That contributes to NBN Co’s increase in overall revenues for the period, reporting $2.26 billion, up 25 percent year over year from $1.8 billion. NBN Co said it is on track to reach its FY21 forecast of $4.5 billion.
EBITDA including subscriber costs was $424 million, a $1.1 billion improvement year over year thanks to a 44 percent decrease in subscriber costs paid to Telstra and Optus.
Residential average revenue per user (ARPU) remained steady at $45 during the period despite the free CVC offer to retail service providers that ran through most of 2020.
“Our results in the first half of FY21 are very strong and underscore the strength of the business in what has been a challenging time for all Australians. 2020 was a watershed year for NBN as the digital needs of residential and business customers were more important than ever before,” NBN Co chief executive Stephen Rue said.
“Our revenue and EBITDA exceeded forecast in the first half, and it was particularly pleasing to see the stronger than expected new customer activation numbers, demonstrating Australians’ reliance on the NBN network to meet their everyday needs.
“The strong total revenue growth in the first half puts us in solid position to achieve positive full year statutory EBITDA for the first time, which will be a significant financial milestone for the company.”
NBN Co also noted the increase in demand for “higher speed tiers”, or NBN plans starting from 50Mbps and above. As of 31 December 2020, some 70 percent of connections were on those speed tiers, while 80 percent of new orders were also at least 50Mbps.
“Demand for higher speed broadband services has accelerated and we have seen and experienced profound changes in the way we work, the way we connect with family, friends and colleagues, and the way Australians access essential services such as healthcare and lifelong learning,” Rue said.