The 2019 - 2022 Corporate plane released by NBN Co last week confirmed what was shared in the POV in April - May this year.       

1. 6
NBN - Where are We Today
High
LowRevenueVolatilityHigh
Hazardous Rollercoaster
Blue Chip
Stagnant
Low 5 Year Annualised Growth
NBN Co
• As predicted in my POV about cannibalisation of customers
because of 5G. NBN Co has slashed the number of customers it
expects to sign up to the broadband network next year in response
to weaker-than-expected demand, fuelling concerns its business
model is more vulnerable than it admits to the rise of 5G.
Activation rates has been reduced by 0.5 million premises
• Sales and Capex challenge for NBN Co was highlighted in the
POV because of Federal budget balance sheet, it is now reflected in
the corporate plan 2019 – 2022.
• NBN Co has also steadily downgraded its 2020 revenue targets,
from $4.9 billion in 2017, to $3.9 billion last year, to $3.7 billion this
year.
• Capital expenditure estimates for 2020, meanwhile, have blown
out to $4.3 billion, up from $3.6 billion in last year’s report.
• Projections for 2021 and 2022 were also up on the previous year’s
estimates by $200 million in each case.
• Liberal Govt was not in a position to fix the NBN Co’s operating
model before the elections and is still the case after elections
• More money is required for fixing the NBN Co model ( > 51 Billion
committed on books), but Neither Mr Rue nor Mr Fletcher would
be drawn on whether extra capital would need to be raised to fund
upgrades to the network after the roll out. Mr Rue said there was
no plan to exceed the $51 billion during the final stage of the roll
out
• On competitive front VHA and TPG was going to be a game
changer for consumers, but ACCC rejection of the merger has put
spanners in TPG’s growth and local telecom industry
• Federal courts hearing to start next week.
Source: IBIS, NBN Co, AFR, Gov.au
Highlights - Corporate Plan 2019 -2022
Following up on my presentation on NBN & 5G Roll
out - What the future beholds, the 2019 - 2022
Corporate plane released by NBN Co last week
confirmed what was shared in the POV in April -
May this year. Some of my predictions are coming
true: