Friday, 31 August 2018 10:50

NBN Co will not reach ARPU target even in FY22 Featured

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NBN Co, the company rolling out Australia’s national broadband network, the NBN, will not achieve its desired $52 average revenue per user target to remove the red ink from its budget, even by FY22, two years after the rollout is completed in 2020.

According to the company's corporate plan for 2019-2022, which was released on Friday, the ARPU is expected to grow from $44 at present to $51 by FY22, a dollar short of what it needs to break even.

In last year's corporate plan, which spanned the years 2018 to 2021, NBN Co had said its ARPU would be at $52 in 2021.

Details about the ARPU were buried deep in the corporate plan statement, on page 60 of an 86-page report. No mention was made of ARPU in the slides, that were sent separately to the media by the company, or in its media release.

"Monthly Average Revenue per User (ARPU) is expected to grow from $44 to $51 in FY22, stimulated by an expected increase in end-user willingness to pay, increase in end-user take-up of plans based on higher wholesale speed tiers, increased end-user data consumption, and increased penetration into small to medium business segments," the plan states.

nbn one

As far as other financial forecasts are concerned, the company said it would achieve annual revenue of $2.6 billion by FY19, $3.9 billion by FY20 and $5.2 billion by FY21.

This was predicted based on an expectation that revenue would rise by 30% in FY19 and 50% in FY20.

Graphic: courtesy NBN Co

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Sam Varghese

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Sam Varghese has been writing for iTWire since 2006, a year after the site came into existence. For nearly a decade thereafter, he wrote mostly about free and open source software, based on his own use of this genre of software. Since May 2016, he has been writing across many areas of technology. He has been a journalist for nearly 40 years in India (Indian Express and Deccan Herald), the UAE (Khaleej Times) and Australia (Daily Commercial News (now defunct) and The Age). His personal blog is titled Irregular Expression.

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