Consultation outcomes and formal notice: Smart Locations network build pricing changes
In July we consulted with you on our proposal to introduce an updated Smart Locations new fibre network build pricing structure and quoting process. This is to help support your efforts to drive uptake of Smart Locations fibre connections by making it more affordable to connect upfront to take advantage of the growing IoT category, especially high bandwidth applications.
The proposed structure and process we shared was:
- Within Chorus fibre areas we proposed standardising the network build cost per connection to $1.5k ex GST. The price would apply to build costs up to a threshold. Any build cost that exceeds the threshold would be on charged as actual.
- There would be exclusions and for those locations/object types that are ineligible these orders would continue to be quoted as Price on Application (POA).
- For other LFC and non-fibre areas, the network build cost would remain unchanged and continue to be quoted as Price on Application (POA).
- Installation charges to the ETP/ONT would remain unchanged as per the UFB services agreement.
- Copper to fibre migrations, BS4 and eBS4 connections would be out of scope and continue to be priced as per the UFB services agreement.
- We also proposed, rather than receive an estimate, you would receive a quote upfront for acceptance prior to design and build commencing. This is regardless if you order via the Complex Fibre Delivery (CFD) or Chorus (COM) portals.
We appreciate all the feedback received. Please find below a high-level breakdown of the feedback and our responses.
Consultation feedback and our response
|
Proposal |
RSP Feedback |
Our Response |
|
Standardised price of $1.5k (ex GST) in Chorus fibre areas |
Are we treating all NBAPS the same with one price. Will all NBAP installs be charged at a flat $1.5k as costs vary depending on the location, if capacity is available, location of object type, comms room position. |
The standardised price of $1.5k (ex GST) is for the network build extension to the Fibre Access Point (FAP). As per the UFB service agreement, installation charges to the ETP/ONT would remain unchanged. Exclusions also apply and will be priced as POA, please refer to the new pricing structure table below. |
|
|
If records need to be updated but there is already fibre capacity available for a new connection in an existing MDU, then will the $1.5k charge apply? |
No, the $1.5k will not be charged as there is no network build required. Install costs may still apply as applicable. |
|
A threshold will apply with exclusions. |
We need to understand what the threshold is as most of our smart locations seem to be in the $6k - $10k range. |
We reviewed our object types and can confirm the threshold is $10k. Any network build over $10k will be charged as actual. For example, if the total build cost is $12k, you will be quoted $1.5k + $2k = $3.5k + any applicable install charges. |
|
Rather than receive an estimate, you will receive a quote upfront for acceptance prior to design and build commencing |
How can you cap build costs but then provide a quote to the RSP before the design has been done which would be needed to work out the build cost? |
All order information will be assessed at the time an order is received, by our inhouse teams. The order information i.e. GPS co-ordinates will need to be accurate. If any queries our team will be in touch. You will be provided with a quote and once accepted, the Service Company will be engaged. A high-level design plan will be supplied only for complex and high-cost quotes. Otherwise, a detailed design will be completed by our Service Company once the quote has been accepted and can be shared with your customer as required. |
Next Steps
Having carefully considered the results of the consultation, we are now able to share the new pricing structure and process, please refer below. This will be introduced from 12 October 2023 after the formal notice period of 20 business days is completed. Applicable BS2 and BS3 order requests are eligible. Copper to fibre migrations and BS4, eBS4 connections are out of scope and will continue to be charged as per the UFB Services agreement. We will be monitoring the performance of the new structure to make sure it’s meeting the right outcomes.
New Smart Locations network build pricing structure and process
|
Zone |
Network Build |
Install |
Exclusions (for the standardised price otherwise POA will apply) |
|
Chorus fibre areas |
Standardised price of $1.5k (ex GST) per connection up to $10k. Any network build over $10k will be charged as actual ie $12k build ($1.5k + $2k) = $3.5k. If fibre in place and records need updating, no build contribution applies |
Standard and non-standard install charges apply as per the UFB service agreement plus any other applicable install fees |
Object type: Cell sites, Portacoms Temporary: any other requested temporary connection over and above a Portacom Location: Motorways, ports, airports, parks, and railway corridors due to network availability and accessibility. MDU: If an object is fed from inside an MDU where there has never been any NGA connections/fibre inside the building before |
|
Non-fibre areas |
Price on Application (POA) |
Standard and non-standard install charges apply as per the service agreement plus any other applicable install fees |
n/a |
|
Other LFCs |
Price on Application (POA) |
POA |
n/a |
Updates to our process to support the new pricing structure
- We are streamlining our internal processes so that you will now receive a quote upfront for acceptance prior to design and build commencing. This is regardless if you order through the CFD or COM portal.
- Once you submit your request, our Smart Location inhouse teams will verify the location information and its eligibility for the standardised build contribution or if it’s a POA request. We will check the fibre capacity to the site and determine if a build contribution is required, and if so, whether it fits within the $10k threshold. We will also check if any non-standard install work is required. In situations where we can’t ascertain requirements from a desk-top scope, then they will either reach out to you for any further site readiness requirements or engage our Service Company to complete a site visit and quote.
- A confirmed quote will then be provided back to you to discuss with your customer, supported by our updated quote and installation terms. For a large proportion of requests, we will aim to get this quote to you within 5 working days from when all requested information is received.
- A high-level design plan will be supplied only for complex and high-cost quotes. Otherwise, a detailed design will be completed by our Service Company once the quote has been accepted and can be shared with your customer as required.
- Once the quote has been accepted and signed installation terms and/or consent have been received as required, then our Service Company will commence the work to connect your Smart Location. If you cancel the request after approving the quote, then you may be on charged costs we’ve incurred to that date.
Contact
If you have any queries on the above, please get in touch with your account team.