Australia - National Broadband Network - HFC Cable Networks

1. Synopsis

2. Technology

2.1 Hybrid Fibre Coax (HFC)

2.2 The DOCSIS standard

2.3 The next development for DOCSIS

2.4 HFC DOCSIS vs. fibre

3. Market statistics and estimates

4. Austar United Communications (AUSTAR)

4.1 Overview

5. BES/e-wire

5.1 Overview

6. TransACT

6.1 Overview

7. Telstra

7.1 Background information

7.2 Network upgrades

8. Optus

8.1 Overview

8.2 Network upgrades

9. Industry analysis

9.1 Do we need infrastructure-based competition?

9.2 Moving on from the HFC of the past

9.3 No long-term future in HFC cable broadband

9.4 HFC incorporated in multi-technology NBN

9.5 From HFC to Fibre-to-the-Premises (FttP)

9.6 Open access policy

10. Related reports

Table 1 Cable broadband subscribers by major operator and annual change 2002 - 2014

Table 2 Cable subscribers versus other broadband technologies 2009 - 2014

Table 3 Optus financial data 2011 - 2015

Table 4 Optus financial data 2011 2015

Table 5 Optus financial data by sector 2009 - 2015

Table 6 Optus on-net broadband subscribers 2009 - 2014

Chart 1 Overview of cable broadband subscribers by operator and annual change 2002 - 2014

Chart 2 Overview of cable subscribers versus other broadband technologies 2009 2014

Exhibit 1 HFC network status

Australia - National Broadband Network - HFC Cable Networks

In recent years Telstra and Optus have upgraded their cable networks with DOCSIS 3.0 technology, providing data at up to 100Mb/s. This investment has enabled the providers to meet consumer demand for faster broadband services. The roll out of the National Broadband Network under the December 2013 strategic review has placed a greater emphasis on existing hybrid fibre coax plant being part of the national broadband plan. In December 2014 the revised NBN agreement will see Telstra's HFC network and elements of Optus's HFC infrastructure deployed as part of the NBN, so reducing the cost of the rollout which aims to reach some 3.6 million premises by June 2016.

The other main cable player is TransACT, operating a hybrid fibre coax network in Ballarat, Geelong and Mildura. Since the acquisition of TransACT by iiNet in late 2011, these networks have been integrated in the latter's company's overall infrastructure plans.

In mid-2014 there are fewer than one million cable broadband subscribers, accounting for less than 8% of the total broadband market in Australia. However, most of these subscribers are high-end users providing relatively high ARPU for the cablecos.

This report provides an overview of the HFC networks run by the key operators. It also gives background information on technologies, including the development of the DOCSIS 3.1 standard, together with market statistics from a range of sources. The report assesses the potential market growth of HFC networks in the years leading to the deployment of the National Broadband Network.

Key developments:

NBN transition developments, NBN Co agrees to acquire Telstra's HFC and copper assets, as well as utilise elements of Optus's HFC plant; fibre broadband subscriber base broaches 200,000; DOCSIS standard upgrade to 3.1; calls for HFC wholesale access services; ABS data to June 2014; analysis of the NBN strategic review; recent market developments.

Companies mentioned:

Companies mentioned in this report include AUSTAR, Optus, FOXTEL, Telstra, Neighbourhood Cable, TransACT.