University Business Experience Project: NBN Co. Case Study Analysis

This case study analyzes the issues encountered by NBN Co., the National Broadband Network in Australia, focusing on challenges related to internet speed, infrastructure, and business model. The study examines the organization's goals, including providing high-speed internet access to all Australians and the difficulties in achieving this, such as low bandwidth during peak hours and issues with retail service providers. The findings highlight factors like insufficient funding, dependence on external suppliers, and pricing strategy loopholes. The discussion section explores potential solutions, including developing effective business partnerships, outsourcing services, and addressing external threats. The study concludes with recommendations aimed at improving NBN Co.'s sustainability, ensuring a competitive telecommunications market, and enhancing internet connectivity for both commercial and domestic purposes. The project aims to identify the problems faced by NBN and provide sustainable solutions to the company. This case study is contributed by a student and available on Desklib.

Running head: BUSINESS EXPERINCE PROJECT
Business Experience Project
Name of the Student
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Table of Contents
Introduction/ Synopsis of the Case study...................................................................................2
Findings......................................................................................................................................4
Discussion..................................................................................................................................7
Conclusion................................................................................................................................10
Recommendation......................................................................................................................12

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Introduction/ Synopsis of the Case study
The purpose of the current case study is to analyse the issues that are encountered by
the National Broadband Network (NBN) Co. This is one of the major organizations in
Australia that controls the wholesale market for the open-access data network and wired data
network that deals with both wireless radio and wired forms of communication. The business
organization was established in the year 2009 with the aim of development of the high speed
communication technology. The main purpose of the network is to remove the barriers of
communication. One of the main objectives of the organisation is to ensure that all the people
in Australia are able to access high speed Internet service, which will help in the development
of technological infrastructure of the society. One of the major issue and period that are
encountered by people of Australia to access high speed Internet it is due to high cost
involved in setting up the infrastructure. With wireless mode of communication it is possible
for NBN to reduce the cost of broadband Access for common people.
In order to fulfil the mission NBN has set up the infrastructure that has allowed
wholesale open access for the broadband network. This Access can be used by all local
networks to improve the bandwidth speed. The Retail service providers are responsible for
distributing user end Internet connectivity. This will help in the telecommunication field of
Australia. It is also possible to generate a business environment of healthy competition in the
telecommunication market. The customer in the market will also get the opportunity to
choose from a wide variety of broadband network.
The comment of Australia has also published statement of expectation, which is a
supplement to change the mandate of the policy. The ownership of NBN is among the
Commonwealth of Australia which is a public sector organisation controlled by government

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policies. This is incorporated under the policy of Corporations act 2001. The operation is also
controlled by Performance and Accountability Act 2013 (Alizadeh 2013).
The purpose of the NBN services to provide high Internet connectivity for both
commercial and domestic purpose. As per the commitment of the organisation it is supposed
to provide an Internet speed of 25 megabytes per second. The organisation is also planning to
double the speed 90% of their existing areas. This is believed to unleash the technological
potential that is possible due to Government support. The partnership of various retail sector
units has made the Internet connectivity reaches out to various remote areas.
The current case study is him to highlight up on the issues that are encountered by the
national broadband network. In spite of the effective business plan of NBN, the organisation
has failed to produce direct demand in the Retail Industry of broadband network. Hence, it is
not possible for the customers to directly access the internet connectivity at lower price,
which is one of the major aims of NBN. This case study will highlight up on major fact
related to all the issues encountered by NBN and thereby will aim to highlight upon the issues
that can help them in future sustainability
Alternative solution will also be provided in order to deal with the existing issue and
ensure there is no disadvantage associated with current business model. Alternative solution
will also help to provide proper documentation to deal with the existing issue. Appropriate
planning is also necessary as a part of the recommendations that are provided as a part of the
case study.

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Findings
The section of the case study will focus upon the issues faced by NBN, which will be
supported by facts and statistics. It is also important to identify the underlying cause for the
issue, which will help in the matter of implementing relevant solutions.
One of the most common issues that are encountered in the management of NBN is
due to low Internet bandwidth speed in many areas. This is a major challenge during the peak
hours of a day, when all type of domestic and commercial activities are going at full speed.
This is not only compromising up on the reputation of NBN, but also hampering the
technological infrastructure in many parts of Australia. Nearby it is not possible for the
people to get the advantage of high speed Internet service. As per the report of the statistics it
is clear that 71% of the users associated with the service of NBN has encountered issues due
to low Internet speed during peak hours. 28% of the users have also encountered total
blackout. Most of the cases of Internet blackout or low bandwidth speed are reported during
10-12 hours and 14 to 16 hours (Katz 2012). It is important to mention that one of the major
cause of the issue is due to the fact that it is not possible for NBN to deal with all types of
infrastructural issues.
NBN is dependent upon local retail service provider in order to develop upon the
infrastructure in every local areas of Australia. The findings of the recent reports suggest that
the business partnership model of NBN with small scale retail service providers has failed.
This is mainly due to the fact that it is not possible for the small scale retail organisation to
bear the high cost that is involved in the process of setting up infrastructure for high speed
wireless Internet communication (Li 2012). Hence, in most of the cases the national
broadband network has not been able to provide the proper funding that is necessary to setup
the infrastructure for high Internet speed.

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Additional to all as far as the latest report the authority of national broadband network
is not understanding the significance of the problem and thereby putting the blame for the
issue on government organisation. One of the major organisational aims of NBN is to become
financially independent and pay back all the dues paid by the government. Nevertheless, the
basic principles that have been implemented by the organisation in deciding upon their
pricing strategy have got their own loopholes. Hence, it is not possible for the organisation to
collect enough revenue from the public. One of the major complaint raised by the
organisation in the context is about the fact that the retail Internet providers are not buying
enough Internet service from NBN. As the bandwidth service remain unsold, most of the
servers are not operated by NBN, thereby resulting in slow speed of Internet (Nansen et al.
2013). One of the major fault of the government in this case is that they failed to provide the
social value the high speed Internet project that have been initiated by the authorities at
National broadband network. The social value need to be implemented with the help of
reducing the complexity in the pricing model.
There have been an increased number of cases of blame game among the Telecom
industries, which is not able to focus upon the Ultimate cause of infrastructural issues.
Acting as one of the wholesale distributor of Internet bandwidth, NBN charges a
certain fee the installation of ISPs, which is dependent upon the speed of the bandwidth or the
volume of Internet that will be consumed by the user. This fee is called the Connectivity
Virtual Charge. Nevertheless the main issue in this context is due to the fact that the
government is charging a high amount of tax of 7.30 dollar per month as a service for end
users. Hence, most of the Australian consumers are facing issues due to high level of pricing
charged for accessing high speed Internet service (Falch and Henten 2010).

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It is also believe that the issue of low Internet speed is also compromising up on some
of the national social service like education and Healthcare. Hence, it is not possible to
provide effective social service to the Australian consumers due to poor infrastructural
condition. One of the issues that are believed to be responsible for infrastructure in pricing
model of NBN is due to the initial failure of implementing business partnership theory.
One of the bases of business model of NBN is dependent upon partnership that is
formed with local retail Internet provider. However, the economics of the business of Indian
is dependent upon the wholesale business model. Hence, it is not possible for the organisation
to create retail business demand. The pricing model that have been introduced by the
organisation have not initially analysed all the external threat.
In a given context it is important to mention about porter's five forces, which is
believed to be one of the effective marketing tool to identify all kinds of external threat in a
business environment. In spite of high demand of high speed Internet service, there is high
level of threat from external supplier. NBN is highly dependent upon supply of fibre material
from external business partners. The threat in this context is due to the fact that in the current
scenario the organisation is only dependent upon few numbers of suppliers and thereby often
has to pay high price. Moreover, there is the threat of new alternatives that can provide high
Internet speed from that of the fibre cables. There are also new small scales Enterprise, who
are setting up business to make use of the available opportunity in the Telecommunication
industry. With the entry of new business organisation, who is offering high speed Internet
service at much lower cost, NBN is also facing the threat from high power from the customer,
as they have the option of purchasing Internet service at much lower price.
The tax level of the small scale Internet provider is mast were compared to that of the
Internet service of national broadband network, which is lower almost at the rate of 50%.

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Discussion
From the previous section it is clear that one of the major issues encountered by the
national broadband network is it due to poor level of funding in setting up of basic
technological infrastructure needed for high Internet speed. Organisation also failed to
identify all the external threats that are associated with in the telecommunication industry.
This is mostly due to the fact that the company has not been able to generate retail demand
and neutralize the threat of alternative service.
Due to all the issues and basic infrastructure level, it is not possible for the national
broadband network to provide proper solution for the low Internet speed and blackout that are
encountered in the middle of the peak hours.
One of the effective ways to deal with the issue of Internet service provider is develop
effective business partnership network with various industrial sectors in a technological
domain. According to Given (2010), one of the major reason for success for the modern
digital Revolution is due to the fact that most of the large scale electronic band are able to
develop effective business partnership model.
One of the suitable solutions for the national broadband network in this context is to
develop effective business partnership model (Cradduck 2011). This can help the
organisation to get proper supply of raw materials that is needed to develop technical
infrastructure and provide high speed Internet network in all parts of Australia. As mentioned
in the previous section, the Internet service of national broadband network is dependent upon
fibre cable and wireless Technology. It is important for the organisation to get proper supply
of electronic parts and circuit that is needed to set up the Internet servers. Hence, Outsourcing
of business service can be one of the proper solutions for National broadband network to deal
with the existing issue of Internet blackout and low speed.

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One of the major business advantages that the company can enjoy with outsourcing is
the ability to improve upon the networking capability. They can also hire business ideas from
large scale organisation like Cisco. Hence, it is possible for them to get the infrastructure and
roadmap to implement safety in the networking business and provide secure intelligent
information for all domestic and commercial uses in Australia (Alizadehand Farid 2017).
They can also hire the Cloud Service network from large-scale organisation, which is
believed to be one of the effective ways to improve the technological infrastructure of
Internet bandwidth. In Spite of the business plan of NBN to local retail business partnership
with local retail Internet providers; it was not possible for the organisation to increase the
demand from the retail section.
With implementation of outsourcing business model it is possible for the organisation
to develop business partnership with all small scale service providers and thereby able to
successfully reach out to all types of stakeholders and meet up with the demand. It is also
possible for the organisation to hire technical experts from third party agents, which is also
believed to be one of the major advantages of business outsourcing.
On the other hand as mentioned by Nansen et al. (2013), one of the major
disadvantages of outsourcing business for networking industry is due to the Complex level of
policies that need to be implemented for smooth functioning of business operation. There is
also high risk involved in the matter of security, where sensitive are classified information
can get leak out due to increasing trends of Cyber criminals. The customers can also face
issue due to authentication, as in many cases NBN has to hire Internet service from other
business network. Additional it is also relevant to mention that without proper business set
up, it is not possible to coordinate business partnership.

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However, with effective business partnership and networking it is possible for the
organisation to establish open network. This is believed to be one of the effective way to
implement flexibility and provide adaptive solution to all forms of networking issue that are
encountered in the modern day digital world (Wilken,et al. 2013). With the help of open
network it is also possible for the organisation to provide more option to the customers and
thereby ensure that they are able to meet up with the growing demand of the industry. The
implementation of latest innovation can be encompassed with the open network, which will
enhance the overall supply chain.
One of the major issues that have been encountered by the national broadband
network is due to the fact that they have not been able to implement effective pricing strategy
in their Service Delivery model. Hence, organisation can use the theory of marketing mix that
is believed to be useful in deciding upon the pricing strategy. One of the major advantages of
implementing effective pricing strategy is due to the fact that it is possible to collect
important information from the networking business market (Diaset al. 2014). As mentioned
previously one of the major issue encountered in the national broadband network is due to the
high cost of Internet service it is mainly due to excess level of tax imposed by the Australian
government. With effective pricing strategy it is possible to analyse the external business
environment in the networking industry and thereby able to understand the taxation policy
that are imposed by the government in the respective areas. It is often believed that pricing
strategy is one of the crucial factors that help to influence upon the customer decision making
process (Valle de Souzaet al. 2016). With the demand of Internet service going high in the
current age of digitisation there are a lot of Internet service providers entering the market
with and offering low cost service. The additional unique features are always welcome by the
customers, which can help them to enjoy better Digital Service in personal and professional
aspects.

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Pricing strategy is also affected due to the fact that this one of the key element of
marketing mix and thereby help to provide a better market position of the brand in the
respective industry (Tiwariet al. 2016). It is often believed that service providers, who are
able to provide the best cost effective network to the customer, are able to capture majority of
the market share. This in turn helps to provide better brand image of the organisation. The
leading brand in the respective industry has a major role to play in deciding upon the pricing
strategy that is implemented. In other words, it is possible for the national broadband network
to play an important part and deciding upon the cost of Internet service in Australia as they
are one of the biggest public sector organisations, who are providing up with modern Internet
service.
On the other hand, one of the major negative aspects of low pricing strategy is due to
the fact that there is high risk of lowering of the service quality (Wilson 2014). In many cases
it has been seen that large scale business organisation in order to control the market share
lower the price of service by compromising upon the overall quality of service or product. In
the given context of networking industry, where there is high level of threat from business
rivalry, companies do have taken the risk of lowering the price which will help them to better
sustain in the networking domain. Hence, the pricing strategy is believed to be effective in
dealing with all major challenges encountered by the national broadband network in the
current context of Internet service providing industry of Australia.
Conclusion
From the above case study it can be concluded that the national broadband network is
currently one of the major Internet service provider in Australia, who have been able to
succeed in the respective domain due to the application of latest form of Technology in the

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form of fibre wire and wireless communication. One of the major reasons for rising
popularity of the high speed Internet service by NBN is due to the fact that they are able to
deliver wholesale Internet communication service, which is usually achieved through
business partnership with small scale Retail Industry. The small scale Retail organisations are
responsible for providing better quality of Internet service to all domestic and commercial
uses in Australia.
However, in the recent days one of the major issues encountered by the Internet
service of national broadband network is due to the fact that they are not able to provide
uninterrupted high speed Internet service. This is mostly due to the Internet blackout issues
encountered in various places during the peak hour of the day. Failing to implement proper
technological infrastructure at the initial period in many remote places due to lack of
government funding is believed to be the root cause of this technical issue. Moreover, in spite
of the business model of partnership it was not possible for the company to generate proper
retail demand for Internet service, which resulted in lack of revenue income.
The government is also responsible for the existing issue due to the fact that it has not
been able to promote the social value that is needed to improve upon the technological
infrastructure of the Australian society and provide uninterrupted high speed broadband
service.
One of the major possible solutions for the existing issue that has been mentioned in
the case study is to outsource business resource in the form of advanced telecommunication
network. This is believed to help the organization to lower the price of Internet service is
there possible to outsource essential networking resource at much lower cost from third party
agents. This can also encourage time to implement the solution of open network, which will
provide the opportunity to the users to get the access of high speed Internet service.

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Nevertheless, it is important for the company to deal with Complex level of policy that is
usually involved in matter related to Outsourcing business resources.
Another major solution that can be implemented is related with the pricing strategy.
Here, it is essential for the organisation to collect necessary information from the external
business environment and thereby able to implement proper solution to reduce the cost of
high speed Internet service. However, it is essential to ensure that the quality of the service is
not compromised while focusing upon low cost Internet service.
Recommendation
It is highly recommended for the national broadband network to follow and
implement the policy of Outsourcing business service. As during the initial period the
organisation has aimed provide networking service to the public in the form of retail sector,
hence forth by implementing the policy of outsourcing business it is possible to increase the
demand of retail unit. As the demand of the retail sector of high speed Internet service will
increase, it will be possible for the organisation to generate more revenue and thereby
improve upon the existing technological infrastructure. It will be there for possible for
National broadband network to reduce the cost of high speed Internet service, which is one of
the major existing issues.
It is also believe that the issue of Internet blackout is mainly due to the fact that NBN
has not been able to properly utilise all the existing service that is needed for wireless
telecommunication network. With more revenue generation it is possible to update the
existing networking server and thereby improve upon the bandwidth. This will minimise the
chance of any form of interruption that is currently causing all forms of issues of internet. It is

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also possible with the help of business Outsourcing to improve upon the human resource
policy associated with the service of the networking business. Moreover, business partnership
with large scale organisation like Cisco can help the national broadband network to hire
advanced form of Internet server that in turn can help to develop the business model of the
existing networking chain. As mentioned by Gunaratne et al. (2015), one of the crucial
success factor of all networking business is to have advanced level of supply chain. With the
help of business Outsourcing responsible for the national broadband network to improve
upon their existing supply chain process.
Hence, it is highly recommended for the national broadband network the properly
implement upon the policy of business outsourcing. Additionally, it is also necessary to
ensure that no unethical policies are being adopted in order to set up business partnership
with third party agents. It is also possible to ensure that all legal policies related to business
partnership and outsourcing are being followed to ensure organisational adaptation of
national broadband network.

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investigation of the National Broadband Network early rollout and pork barrel politics in
Australia. Telecommunications Policy, 41(4), pp.242-252.
Alizadeh, T., 2013. Towards the socio-economic patterns of the national broadband network
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