My development & Telstra offer / NBN rollout....

Discussion in 'Development' started by Keentolearn77, 29th Apr, 2019.

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  1. Keentolearn77

    Keentolearn77 Well-Known Member

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    I've just received an email from Telstra,
    Trying to read between the lines here, do i interpret this as all care, no responsibility....
    Anyone else been in this scenario.....

    "nbn co has made an announcement that your development location is now within an nbn™ rollout region and/or has indicated a planned availability within 12 months.
    While Telstra considers that nbn co is the Infrastructure Provider of Last Resort (IPOLR) in these circumstances, Telstra is willing to provide a quote to install infrastructure pursuant to our Infrastructure Provisioning Agreement (IPA) conditions.
    Should you accept the IPA conditions and pay the quoted amount, you need to be aware of the following risks that may eventuate due to the rollout of the nbn:
    a) Telstra may not be able to complete the installation of its network.
    In some areas Telstra’s copper network becomes part of the nbn as it rolls out. In these instances Telstra may not be able to complete the extension of this network if that network transitions to nbn co ownership before the extension is completed. Telstra does its best to estimate the timing of these transitions before offering to extend network to a new development but, ultimately, changes in the timing of the nbn rollout are outside of Telstra’s control. Delays in completing the development will increase this risk as our offer is based on dates you have provided.
    b) If Telstra completes the network installation, once the Telstra network is installed, it may not be able to be used to provide services to some or all of the premises in your development.
    As part of Telstra’s agreement with nbn co, at specific addresses where nbn co has declared nbn fixed line services are available, Telstra is generally required to use the nbn network to provide fixed line services instead of using its own infrastructure.
    Should Telstra complete the installation, you will not be entitled to a refund pursuant to clause 4.2 of the IPA. If Telstra is not able to fully complete the installation, you may be entitled to a partial refund in accordance with the IPA.
    We will be in touch with you again shortly with an infrastructure offer for your development."

    - So what would be my best option here, I guess either way I'll be out of pocket, or is there a way of winning in this scenario....
    Currently at base stage - Not due to complete development (4 townhouses) until sometime between December/January
    What should I do....
     
  2. Chris s

    Chris s Active Member

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    I'd interpret that as you can pay Telstra to roll it out and connect services and this should work if you and nbn remain on schedule. However if you delay or the Nbn comes along and does your street sooner, they take over the network you will need to go through them and be refunded for the work so far. Just not sure if you would get it all back.

    I dont think either would do it free so the only reason to wait is if nbn would be cheaper or the timing is too close and telstra may not provide a full refund.
     
  3. Scott No Mates

    Scott No Mates Well-Known Member

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    Have you registered your site with NBN as a developer?
    When will your site be completed?
    What is NBN delivering to your area?
     
  4. Scott No Mates

    Scott No Mates Well-Known Member

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    NBN is not 'last resort' it's competition to Telstra's fibre network but they're not offering you this.
     
  5. Paul@PAS

    Paul@PAS Tax, Accounting + SMSF + All things Property Tax Business Plus Member

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    I wonder how the ACCC would see their claim that NBN is provider of last resort ?
    Its not exactly honest

    Isnt the issue that you have a option to wait and connect to NBN or use Telstra now and they are saying IF its completed and all operating when NBN is mandated in the area then you can migrate to the NBN provider of choice. Their caution is that they may be unable to connect you or do so before the NBN comes along and then you will need a new NBN connection for a fee.
     
    llamacat likes this.
  6. Keentolearn77

    Keentolearn77 Well-Known Member

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    Thanks for the feedback peoples.

    Yes Paul - it almost warrants ACCC enquiry, Telstra are using pressure tactics on the unsuspecting, with no guarantees, and with possibility that the little people will lose out and not be refunded. Hoping I can wait out for NBN and pay half the price of Telstra
    Will speak with my agent, I assume their is no requirement to lease out rental properties with a landline in place (should NBN be delayed by a few months) as long as I have that stipulated in the rental contract for tenants, hopefully that would be ok.....
    Currently registering with NBN, who estimate rollout Jan-Mar 2020 (build end date 1st qtr of 2020.) Looks to be FTTC
     
  7. Scott No Mates

    Scott No Mates Well-Known Member

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    Where is Telstra's nearest pit? Sounds like all Telstra needs to build is the works which is running the copper phone line from the pit in the street to the house.
     
    lixas4 likes this.
  8. Westminster

    Westminster Tigress at Tiger Developments Business Member

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    It's a tough call. When is NBN actually due to the location?
    Telstra will stop taking applications generally if NBN is less than 6mths away so I'd say you are in the area where it's 6-12mths away?
    I had a site where Telstra wouldn't take the application as NBN was due in less than 6mths (due Jan 2019) so application was lodged with NBN BUT currently still no NBN and NBN have now advised that it might be Sept 19 before they are finished rolling out. My project is due to be finished this month and so there will be no ADSL or NBN until NBN get their act together.
    The risk, what Telstra is trying to point out, is that it takes around 20 weeks for either party to do their 5 minutes of work. If you make an agreement with Telstra and NBN take over the area infrastructure then depending at what stage Telstra was at you may need to start all over again and wait another 20 weeks.

    And yes in Perth there is no requirement for a phone line or NBN for tenants. Out of pity I will provide a 4G wireless network for the 3 to share until NBN comes on line though.
     
    lixas4 likes this.
  9. Keentolearn77

    Keentolearn77 Well-Known Member

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    Thanks for the info Westminster, rollout due Jan-Mar 2020 (but yes I guess that may get pushed back 3-6 months) Just awaiting Telstra quote offer which I'll compare to the NBN at $400 per dwelling, and decide accordingly......
     
  10. Keentolearn77

    Keentolearn77 Well-Known Member

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    Update - Have received an NBN quote at $600 per dwelling (new developments charge) still a good wack, but a better deal than Telstra's offer.
    Q. Whilst NBN claim rollout is expected to occur Jan-Mar 2020 - is it fair that they expect the invoice to be paid within 14 days of TODAY, for works that are not going to occur until the earliest - 1st qtr next year.
    I would of thought it much fairer that a behemoth does not demand payment from the customer until perhaps 3 months out from works commencement - at the earliest....