How FTTP NBN works and congestion

An excellent explanation of how the internet gets to you through the NBN FTTP (and the costs involved) from whirlpool:

…assuming it is Fibre to the Premises (FTTP) it will be something like this:

1. Your PC or modem/router
2. Network Termination Device (NTD) inside your home – this is where nbn network starts on your side
3. Premises Connect Device (PCD) on outside wall of your home
4. Fibre Distribution Hub (FDH) – streetside cabinet with passive optical fibre splitter
5. Fibre Access Node (FAN) – a facility housing the active equipment, typically located in a Telstra exchange
6. Point of Interconnect (POI) – one of the 121 sites where RSPs connect to the nbn network – this is where nbn hands over the traffic from their network to the RSP
7. Backhaul from the POI to the RSP’s network (or their wholesaler’s network if they are just a reseller)
8. The internet

For more explanations of these terms see http://www.mynbn.info/faq/list

In order to connect to each POI via nbn Ethernet Bitstream Service (NEBS), an RSP needs to buy:

• NNI activation ($1,000 to $35,000 depending on capacity required) and recurring monthly charge ($200 to $1000, again depending on capacity required).
• Connectivity Virtual Circuit (CVC) for bandwidth needed within the nbn network up to that POI – recurring monthly charge is $17.50 per 1Mbps (bandwidth is symmetric) on TC-4 (lowest priority for data). Note: a transitional credit applies where the first 150Mbps is not charged.
• other sundry facility charges from nbn
• cost of backhaul from the POI to the RSP’s network

This is before any Access Virtual Circuit (AVC) charges for individual customers.

nbn price list is here: http://www.nbnco.com.au/content/dam/nbnco2/documents/sfaa-wba2-product-catalogue-price-list_20150201.pdf

Some smaller RSPs may connect their network to an nbn POI via a third party wholesaler, rather than connecting via their own backhaul. The third party wholesaler can provide this service to multiple RSPs in order to get the benefit of scale.

Congestion could be due to the RSP skimping on the CVC that they purchase from nbn, or with their own backhaul (or their wholesaler’s backhaul as the case may be) from the POI back to their network, or it could be a capacity constraint within the nbn network if they are using a temporary FAN and/or leasing third party backhaul until they can build their own at a later stage. The former would limit the congestion to one RSP (or multiple RSPs if they are all using the same wholesaler) whereas the latter could affect all RSPs serving a particular area. This is assuming that the congestion is confined to your area and is not a general problem for all customers with the same RSP…

The main thing is a FTTP connection no longer allows the Retail Service Provided (RSP) to blame your copper connection.  Im sure with the rain alot of people have experienced problems.

Steve

Gleneagles Estate NBN Committee