In June 2010, the Government announced that from the 1st of January 2011 all new developments would be required to have a fibre optic communication installed. While currently there is no legislation enforcing this policy, the government has outlined that NBN Co will be the provider of LAST RESORT ensuring the majority of homes are connected with fibre going forward.

The policy stated “From 1 January 2011, NBN Co will have the responsible as provider of last resort for the installation of fibre in broadacre developments,  infill developments where it has fibre that is ready for service and capable of connection, and newly approved infill developments of 100 or more premises. For infill developments of less than 100 premises, Telstra will continue to be responsible for delivering infrastructure and services. Telstra will largely be using copper infrastructure to provide interim solutions in these developments, pending NBN Co rolling out its network."
 
Contrary to some claims, the Government has made it clear that these arrangements are not exclusive. Nothing prevents a developer from requesting any provider (whether it be Opticomm or any of the GFOA members) to service their estate. Any provider is free to comply with such a request but under new legislation passed in March 2011, the infrastructure deployed must be implemented using an "open access, wholesale only" business model. 

At this point in time developers have three options:

1. Enter into an agreement with a company such as Opticomm to build an open access, wholesale only multi functional FTTP network; or
2. Enter into an agreement with NBNco to deliver a basic fibre to the home solution which delivers telephone and high speed internet services.
3. Do nothing and wait for NBNco to deliver fibre as part of their national rollout, which could be up to 10 years;
   

If the developer chooses the third option there is obviously no cost involved but they need to deal with the marketing consequences from consumer expectation. In some states (such as NSW) this is not an option, as local council will not issue development approval without a telecommunications certificate. The first option will typically have a cost associated with it, but this will depend on the company you choose, the extra services offered (e.g TV), the size of the estate, and any volume discounting which may apply. The second option, which is available to all developers, involves the installation - at your own cost - of pit and pipe infrastructure and the warranting of that infrastructure for a period not less than 12 months. NBN Co will then provide the required fibre infrastructure and active electronics at their own cost. While this on face value may seem attractive, the current pit and pipe standards from NBN Co (at time of publishing) will typically cost between $1000-$1200 per lot and have in some cases been quoted as high as $1500 per lot. It also delivers only provides a telephony and high speed internet network, as the National Broadband Network will not reticulate PayTV or Free to Air signals.

The full government policy is available at Department of Broadband Communications and the Digital Economy.