For-Official-Use-Only:Commercial CTO Briefing: Fibre to the distribution point INTERNAL USE FTTx / CTO F0020-21-67 | Rev 1.0 I | 2-Feb-2015 For-Official-Use-Only:Commercial

For-Official-Use-Only:Commercial FTTx use cases Street cabinet or MDU 1 FTTN or FTTB AAS P2P Ethernet over fibre Node 100-300 ports VDSL2 over Copper Modem+RG Pit or MDU 2 CSD or FTTB AAS P2P Ethernet over fibre CSD* 16-48 ports Modem+RG 1-8 ports 3 “FTTdp” OLT GPON over fibre FTTdp Modem+RG 1 premises 4 “FTTP” OLT GPON over fibre NTD / ONT RG Ethernet over copper 100/1000BASE-T CSD* : Compact Sealed DLSAM. AKA “Micronode” F0020-21-67 | Rev 1.0 I | 2-Feb-2015 For-Official-Use-Only:Commercial

For-Official-Use-Only:Commercial FTTdp 3 “FTTdp” OLT GPON over fibre FTTdp Modem+RG 1 premises Today Small capacity – 1-8 ports / device Reverse powered from End User premises GPON backhaul (like Fibre NTD) VDSL2 over existing copper lead-in into premises (< 100m) – 100/40 Future Other backhaul technologies (P2P, WMDPON, NGPON2) Faster copper technologies – optimised for short copper runs (i.e. VDSL2 30a, G.FAST) Reverse power supply integrated into CPE F0020-21-67 | Rev 1.0 I | 2-Feb-2015 For-Official-Use-Only:Commercial

Problem: Blocked LIC in FTTP areas Problem statement Approx. 10% of lead in conduits are ‘blocked’ in FTTP areas This includes direct buried copper lead-ins Current solution: bulk and build drop program Impacts Cost per prem of LIC build - $991 (bulk drop) or $1291 (build drop) Delay to providing service Poor End User experience Time and effort for installation F0020-21-67 | Rev 1.0 I | 2-Feb-2015 For-Official-Use-Only:Commercial

For-Official-Use-Only:Commercial Solution: 1 port FTTdp “FTTP” OLT GPON over fibre NTD / ONT RG LIC Pit Splitter / injector VDSL2 “FTTdp” OLT GPON over fibre FTTdp DPU LIC Modem RG Pit DC Reverse power unit 230VAC Re-use existing copper lead-in to deliver VDSL2 service Very short copper - so 100/40 achievable No shared cables – no need for vectoring Improve performance further with VDSL 30a or V+ Upgradable to G.fast F0020-21-67 | Rev 1.0 I | 2-Feb-2015 For-Official-Use-Only:Commercial

Premises installation & activation cost comparison Includes NTD, PCD and Fibre install DFN & LFN costs remain the same in this comparison New LIC outside build and bulk drop program New LIC as part of build/bulk drop program “Best case” FTTP install AU$250 FTTdp F0020-21-67 | Rev 1.0 I | 2-Feb-2015 For-Official-Use-Only:Commercial

Other FTTdp applications Full FTTdp area; FTTP without lead-in & in-premises costs FTTN infill Small cluster of long (>1.2km / 50dB) copper loops Augmenting FTTN Port capacity Underutilised micro-node alternative Bandwidth on demand (> 25/5 Mbps) Interim service while FTTP is connected Small FTTB (wall mount 1P or pit-mount multi-port DPU) “Fibre to the door” HFC infill (where DFN and LFN is cost effective) F0020-21-67 | Rev 1.0 I | 2-Feb-2015 For-Official-Use-Only:Commercial

Alcatel-Lucent small VDSL solutions Micro-node Compact Sealed DSLAMs (CSD) 7363 ISAM MX-6 7357 VSEM-D 7367 ISAM SX-48 7367 ISAM SX-16 192 ports vectored VDSL2 ports Rack mount (comms room or street cabinet) 48V DC powered Direct AC power October 2014 48 vectored VDSL2 ports AC, DC or line powered options Integrated splitters & overvoltage protection 48 vectored VDSL2 ports Hardened for pit/pole/wall mount External AC power or splitter solution December 2014 Integrated AC power or splitters July 2015 16 vectored VDSL2/G.fast ports Hardened for pit/pole/wall mount External AC power or splitter solution December 2014 No integrated AC power or splitters until July 2015 F0020-21-67 | Rev 1.0 I | 2-Feb-2015 For-Official-Use-Only:Commercial

FTTdp solutions under investigation Alcatel-Lucent Netcomm Corning / Aethra TE Connectivity / Technicolor F0020-21-67 | Rev 1.0 I | 2-Feb-2015 For-Official-Use-Only:Commercial

FTTdp Impact Assessment Network New FTTdp device New NBN VDSL Modem? (in FTTP LIC avoidance) Lead-in only VDSL2 configuration IT Fulfilment changes (treat as new Fibre NTD type + VDSL) LNI / PNI Assurance Operations Activation Assurance (GPON + VDSL + modem) Construction Products Telstra DA F0020-21-67 | Rev 1.0 I | 2-Feb-2015 For-Official-Use-Only:Commercial

For-Official-Use-Only:Commercial FTTdp fulfilment FTTdp unit very similar activation to Fibre NTD Re-use existing Fibre NTD activation IT Some fulfilment changes due to VDSL2 interface Bypass mode: Install & pre-activate in OSS Original service remains connected until reverse power is applied When End User applies reverse power FTTdp comes online and takes over lead-in F0020-21-67 | Rev 1.0 I | 2-Feb-2015 For-Official-Use-Only:Commercial

Recommendation & Next Steps Proceed with FTTdp solution development in CTO Establish small FTTdp capability ahead of G.FAST Encourage development in vendor solutions to NBN Co requirements: Small size (fit in Telstra P2 & P3 lead-in pits) Cost per port VDSL2 only Next Steps Assess use of small FTTdp for whole of DA against other access options Combine with LFN re-architecture for MTM & lower cost Reduced civil works (avoiding pit & pipe remediation) Plan evolution to G.FAST F0020-21-67 | Rev 1.0 I | 2-Feb-2015 For-Official-Use-Only:Commercial