Fibre optics provider, Fiber Corp, is promising broadband speeds of between 200Mb/s and 10Gb/s at new residential and commercial developments across Sydney.
Backed by food industry executive and horse racing identity, Nicholas Moraitis, the infrastructure provider will roll out high speed broadband services across areas that NBN Co is not covering yet.
Fiber Corp is offering Gigabit PON (GPON) and Next Generation Passive Optical Network 2 (NG-PON) technologies through a partnership with Calix, a NYSE-listed telecommunications supplier that works with companies in the US such as Verizon and Google Fiber.
So far this year, Fiber Corp has closed 39 projects, totaling 14,690 apartments. Its first apartments – developed by INCON Property and Development, Kanebridge, and Trinity Constructions – are being built in Western Sydney and Mascot. The company said several additional projects will follow in 2017.
The first of these apartments will be completed in Q2 next year and will provide additional services on the service provider’s fibre optic backbone including internet, voice, IP intercom, Foxtel, IP, CCTV, access control and smart home automation.
Fiber Corp managing director, Sam Scoutas, claimed the company will be creating communities in the pursuit of smart cities ahead of anyone else.
“It’s no secret that Australia will be demanding faster internet in the near future as we start to consume increased amounts of higher quality content and change the way we work,” Scoutas said.
He said the combination of Fiber Corp and Calix technology means Australian residents and businesses in metropolitan areas will have access to technology that, if market demands, can power broadband up to 100 times faster than the fastest speed offering by NBN Co.
Fiber Corp said it was attracting interest from local councils that were dealing with delays of the NBN roll out in their areas.
Telecommunications analyst, Paul Budde, told CIO Australia that he would welcome any competitors to the NBN “who are delivering real broadband rather than the second rate service we are getting from NBN Co.”
Budde said the cost model of NBN Co is enormous so companies like Fiber Corp can offer services at a much lower cost than NBN Co.
“Their starting point will be much lower,” he said. “They are not going to conquer the world so they will look at where the most lucrative areas are, a bit like what TPG is doing at the moment. If they have a good business model they could do well because they are ‘quantum leaping’ the quality that you get on the NBN.
“People are not impressed about the NBN, it’s not delivering on the promises, speeds are not what they expect so I think at least 20 to 30 per cent of the market is keen to move to fibre optics.”
Under the government’s proposed Regional Broadband Scheme (RBS) draft legislation, non-NBN network providers will be charged a levy to prop up NBN’s fixed wireless and satellite roll out.
If the legislation is passed by Parliament, it is expected that the levy will raise at least $40 million from non-NBN networks in the first year.
Fiber Corp CIO, Joel Clarke, said that the organisation has lobbied the federal government and NBN Co to allow all compliant and levy participating ‘super fast carriers’ to be part of the national broadband network, and enforce aggregation of NBN Co to assist with offsetting any additional costs of the levy to the wholesaler, RSP and consumer.
“This would reduce the costs associated to RSPs by enabling any RSP to connect to any compliant super fast network and access any super fast ports across all carriers including NBN Co,” Clarke said.
“Any new industry levy/tax must also be applied to NBN Co’s services and revenues generated for the use of RBS must be available for super fast operators (outside of NBN Co) willing to participate and tender in the deployment of the Regional Broadband Scheme. Alternatively, RBS is simply a tax on the competition.”
Commenting on Fiber Corp’s entry into the market, an NBN spokesperson said the organisation welcomed a competitive marketplace to ensure consumers have a choice of services and providers when connecting to fast broadband in Australia.
“NBN was created to level the playing field and create new wholesale competition in the industry. We are an open access wholesale-only network and we currently have more than 50 retailers on-boarded to sell NBN services. Post 2020 rollout, NBN forecast around 73 to 75 per cent market penetration due to competition in the form of alternative fibre network providers and mobile-only users,” the spokesperson said.