Launch an ISP Business in Hours, Not Months

Want to start an Internet Service Provider business in Australia? You have two options:

1. Go direct to NBN Co - Sign a multi-year wholesale agreement, provision CVC capacity, build aggregation infrastructure, integrate with their complex APIs, and navigate months of onboarding.

2. Use wholesale aggregation - Connect to a provider who's already done the hard work. Get a clean Layer 2 handoff, a simple API, and start selling NBN services tomorrow.

This post explains option 2 - specifically, how our wholesale NBN aggregation service works and why it's the fastest path to market for new ISPs, MVNOs, and service providers.

What Is Wholesale NBN Aggregation?

Wholesale NBN aggregation is a service where we sit between you and NBN Co. We handle the complexity of the NBN network, and deliver your customer services as a clean Layer 2 trunk directly to your router.

The Traditional Model (Direct NBN Co)

If you go direct to NBN Co, you need to:

1. Sign an NBN Wholesale Agreement - Requires business vetting, financials, and legal review
2. Provision CVC Capacity - You buy "Connectivity Virtual Circuit" capacity at each of the 121 Points of Interconnect (POIs) across Australia
3. Build NNI Infrastructure - Physical or virtual handoffs at NBN Co-approved locations
4. Integrate with NBN's APIs - Complex SOAP-based systems for service qualification, ordering, and diagnostics
5. Manage AVC/CVC Ratios - Under-provision CVC and your customers get slow speeds. Over-provision and you're burning money.

This works if you're a large telco with existing infrastructure. For everyone else, it's a nightmare.

The Aggregation Model (Through Us)

When you use our wholesale aggregation service:

1. We hold the NBN agreement - Already in place, already active
2. We manage CVC nationally - You never think about POI capacity planning
3. We deliver a single NNI - One Layer 2 handoff (physical or virtual) carries all your customer services
4. We provide a simple REST API - Modern JSON API for qualification, ordering, and service management
5. You pay per-service - Simple, flat-rate pricing based on speed tier. No CVC math, no capacity planning.

You focus on customer acquisition and support. We handle the infrastructure.

How Layer 2 Aggregation Works

Our wholesale service is built on QinQ trunking (IEEE 802.1ad), which allows us to deliver hundreds or thousands of isolated customer services over a single physical link.

QinQ: Double VLAN Tagging Explained

Standard VLAN tagging (802.1Q):

• Each Ethernet frame gets tagged with a single VLAN ID (12 bits, 0-4095)
• This identifies which customer or service the traffic belongs to

QinQ tagging (802.1ad):

• Adds a second VLAN tag, creating a nested structure
• Outer tag (S-VLAN): Identifies the service provider (you)
• Inner tag (C-VLAN): Identifies the end customer

Example:

[Ethernet Header][S-VLAN: 100][C-VLAN: 501][Customer Traffic]

• S-VLAN 100 = Your wholesale trunk
• C-VLAN 501 = Your customer at 123 Smith St, Sydney

When NBN delivers a new AVC (Access Virtual Circuit) for your customer, we map it into your S-VLAN with a unique C-VLAN. Your router sees a single trunk interface carrying all your customers, each isolated in their own C-VLAN.

What You Receive: The NNI Handoff

NNI = Network-to-Network Interface - the physical or virtual link where we hand your traffic to you.

Physical NNI:

• 10G fiber cross-connect in NextDC S1 or Equinix (SY1/SY2/SY3/SY4/SY5)
• We configure the port as an 802.1ad trunk
• You receive all customer AVCs on this single interface

Virtual NNI:

• Virtual cross-connect via Megaport, EdgeIX, or IX Australia (IAA)
• Same QinQ trunk, delivered over software-defined fabric
• Instant provisioning via portal (no fiber installation wait times)

What You Terminate: PPPoE or IPoE

Once you have the NNI, you need to terminate customer sessions. NBN delivers services as Layer 2 circuits - they don't assign IP addresses or handle authentication. That's your job.

Option 1: PPPoE Termination

• Run a BNG (Broadband Network Gateway) or RADIUS server
• Customers dial in with username/password
• You authenticate them, assign IP addresses, apply QoS policies
• Pros: Full control, traditional ISP model, works with all CPE
• Cons: More complex to manage, requires PPPoE expertise

Option 2: IPoE Termination

• Use DHCP to assign IP addresses directly
• Customer router simply requests an IP via DHCP (like a normal home router)
• Pros: Simpler for customers (plug-and-play), easier backend
• Cons: Less common in Australia, requires modern CPE support

Most retail ISPs in Australia use PPPoE because it's the established standard. You can switch later if you want.

The Full Customer Lifecycle

Let's walk through how you'd provision a customer using our service:

Step 1: Service Qualification

Before you can sell NBN to an address, you need to know:

• Is the address serviceable?
• What technology type (FTTP, FTTC, HFC, Fixed Wireless)?
• What speed tiers are available?

API Call:

POST /v1/services/nbn/qualify
{
  "locId": "LOC000123456789"
}

Response:

{
  "status": "serviceable",
  "serviceClass": "24",
  "technology": "FTTP",
  "maxDownload": 1000,
  "maxUpload": 400,
  "availableTiers": [
    "25/10", "50/20", "100/20", "250/25",
    "500/50", "1000/50"
  ]
}

The LOC ID is NBN Co's unique location identifier for every premises in Australia. You can get this via our address search API or NBN Co's public tools.

Step 2: Place the Order

Customer wants a 100/20 service. You place the order via API:

POST /v1/services/nbn/orders
{
  "locId": "LOC000123456789",
  "speedTier": "100/20",
  "serviceClass": "residential",
  "yourReference": "CUST-00451"
}

Response:

{
  "orderId": "ORD-2025-00123",
  "status": "pending_appointment",
  "estimatedActivation": "2025-06-02",
  "cVlan": 501
}

Behind the scenes:

• We submit the order to NBN Co (via Leaptel's aggregation platform)
• NBN schedules an installation appointment (if new service) or processes a transfer (if existing)
• We allocate a C-VLAN ID for this customer within your S-VLAN trunk
• You receive the C-VLAN ID so you can pre-configure your BNG/RADIUS

Step 3: Activation

On the scheduled date, NBN activates the service. You receive a webhook notification:

POST https://your-server.com/webhooks/nbn
{
  "event": "service.activated",
  "orderId": "ORD-2025-00123",
  "cVlan": 501,
  "serviceId": "AVC-123456789",
  "activatedAt": "2025-06-02T09:15:00Z"
}

At this point:

• Traffic from the customer's premises flows over NBN's network
• Arrives at our aggregation layer
• Gets tagged with S-VLAN 100, C-VLAN 501
• Delivered to your NNI
• Your BNG sees the PPPoE session request on VLAN 501
• You authenticate and assign an IP

Customer is online.

Step 4: Ongoing Management

Monitoring:

• You can query AVC usage stats via API (current speed, uptime, error counters)
• We handle CVC capacity - you never see congestion on the backhaul

Changes:

• Customer wants to upgrade from 100/20 to 250/25? API call to modify the service
• NBN processes the change, typically same-day
• No truck roll required for speed tier changes

Faults:

• Customer reports a fault? Use our API to run NBN diagnostics
• We can trigger line tests, check sync rates, even lodge NBN fault tickets on your behalf
• You get real-time status updates

Cancellation:

• Customer churns to another provider or cancels? API call to cease the service
• NBN processes the disconnection, we remove the C-VLAN from your trunk

Powered by Leaptel Aggregation

We don't build our own NBN aggregation network from scratch - we're not that crazy. We use Leaptel, one of Australia's largest wholesale aggregators.

What Leaptel Provides:

• National NBN Co agreement with all 121 POIs provisioned
• CVC capacity management across the entire network
• Integration with NBN Co's order management and diagnostic systems
• Redundant NNI infrastructure in major data centers

What We Add:

• Simplified API layer - Leaptel's APIs are complex. We wrap them in a modern REST interface
• Flexible handoff options - We deliver via physical cross-connects or virtual fabrics (Megaport, EdgeIX, IAA)
• VXLAN integration - Your NBN traffic can seamlessly extend across our core network using our VXLAN overlay
• Combined billing - If you're also buying IP Transit or Hosted PBX from us, one invoice for everything

Technical Architecture: How It Flows

Let's trace a packet from your customer's router to the Internet:

1. Customer Premises

• Customer's router sends traffic to NBN NTD (modem)
• NTD establishes Layer 2 connection to NBN's network

2. NBN Network

• Traffic flows over NBN's access network (fiber, HFC, Fixed Wireless, etc.)
• Reaches the local POI (Point of Interconnect)
• Enters the AVC (Access Virtual Circuit) assigned to this customer

3. Leaptel Aggregation

• AVC traffic arrives at Leaptel's NNI with NBN Co
• Gets aggregated with thousands of other AVCs
• Delivered to Leaptel's core network in Sydney

4. Our Handoff

• Leaptel hands the traffic to our Juniper MX204 routers (NextDC S1 / Equinix SY1)
• We tag it with your S-VLAN and the customer's C-VLAN
• Traffic flows over our NNI to your router

5. Your Network

• Your BNG/router receives the QinQ-tagged frame
• Strips the S-VLAN and C-VLAN tags
• Identifies the customer based on C-VLAN
• Routes the traffic to the Internet (via your own transit, or ours if you're also buying IP Transit)

Return path is the reverse.

Economics: Why This Makes Sense

Let's compare the cost of going direct vs. using aggregation for a hypothetical startup ISP:

Direct to NBN Co (First Year)

And you still need to acquire customers to justify that spend.

Wholesale Aggregation (First Year)

You're profitable from day one because there's no upfront infrastructure spend.

Who This Is For

Retail ISPs

You want to resell NBN under your own brand. Focus on customer acquisition, support, and value-adds (static IPs, gaming optimizations, etc.). Leave the NBN complexity to us.

MVNOs & Bundled Service Providers

You're already selling mobile, VoIP, or SaaS. Add NBN to your bundle without becoming a full telco. One API, one billing relationship.

Enterprise Resellers

Your customers need fixed-line Internet at their offices. You want to offer NBN but don't want to hold NBN agreements for every customer. White-label our service.

Regional Carriers

You own fiber or fixed wireless in a specific region. Use our NBN aggregation to fill coverage gaps where you don't have infrastructure.

Who This Is NOT For

Large Established ISPs: If you're already doing 10,000+ NBN services, you should be direct with NBN Co. You'll get better economics at that scale.

Hobbyists: Running an ISP requires RADIUS servers, billing systems, support infrastructure. If you're just curious, don't start here.

"I just want faster Internet for my house": This is not a retail service. You can't buy one NBN connection from us. Go sign up with Aussie Broadband or someone similar.

Getting Started: The Actual Process

Step 1: Apply for Access

• Contact us via phone or email
• Tell us about your business (existing customer base, target market, expected volume)
• We verify you're a legitimate business entity (ABN required)

Step 2: NNI Provisioning

• Decide: physical cross-connect or virtual fabric?
• Physical: Order a fiber cross-connect to our rack in NextDC S1 or Equinix
• Virtual: Spin up a VXC via Megaport/EdgeIX/IAA to our endpoint

Step 3: API Onboarding

• We issue API credentials (OAuth2 tokens)
• You integrate with our REST API (we provide SDKs for Python, Node.js, PHP)
• Test in our sandbox environment with dummy addresses

Step 4: BNG Configuration

• Configure your router/BNG to terminate PPPoE or IPoE
• Map C-VLANs to customer accounts in your RADIUS database
• Set up IP address pools, QoS policies, etc.

Step 5: Go Live

• Place your first real order via API
• NBN provisions the service
• Customer connects, authenticates via PPPoE, gets online
• You're officially an ISP

Timeline: 1-2 weeks if you're ready. Faster if you use a virtual NNI.

Pricing Model

We charge per-service, per-month based on NBN speed tier:

What's Included:

• CVC capacity (no separate charge - we manage national CVC pools)
• NNI handoff (10G port, QinQ trunk)
• API access (qualification, ordering, diagnostics, usage stats)
• Fault management (we handle NBN fault lodgement and tracking)

What You Pay Extra For:

• NNI transport (if using Megaport/EdgeIX, you pay their VXC fees)
• Customer premises equipment (if you're supplying routers)
• Your own transit/peering for Internet connectivity (or buy IP Transit from us)

No Minimums: Start with 1 customer or 1,000. Same per-service pricing.

Real-World Performance

Since launching our wholesale NBN service (backed by Leaptel):

• 99.8% API uptime (measured over 6 months)
• Median order completion: 3 days (for new installs requiring NBN appointments)
• Same-day speed tier changes (upgrades/downgrades processed within hours)
• Zero CVC congestion incidents (Leaptel manages capacity proactively)

These are real numbers from production use.

Common Questions

Can I use my own IP address space?

Yes. You assign IPs from your own allocation. We're just delivering Layer 2 - you control Layer 3 entirely.

What if I want to use your IP Transit too?

Perfect combo. Your NBN customers can route via our AS152590 IP Transit. Single invoice, integrated support.

Do I need a carrier license?

No. You're reselling a wholesale service. Your NBN agreement is with us, not NBN Co. Check with your accountant re: tax implications.

What happens if NBN has a national outage?

Same thing that happens to Telstra, Optus, and every other provider - your customers go offline. This is a shared-infrastructure model. No one is immune to NBN-level faults.

Can I white-label this?

Yes. Your customers never see our brand. You provide the support, the billing, the customer experience.

What's Next: API v2

We're currently building API v2 with additional features requested by existing wholesale partners:

• Real-time webhook events (order updates, fault notifications, usage alerts)
• Bulk operations (upload a CSV of 500 orders, get them all processed)
• Advanced diagnostics (trigger NBN line tests, pull detailed AVC stats)
• Automated CVC insights (we'll tell you which customers are using the most backhaul)

If you're interested in early access, let us know when you apply.

Summary: Your Path to Becoming an ISP

Traditional Route (Direct NBN Co):

• 6-12 months onboarding
• $40k+ upfront infrastructure
• Complex API integration
• Ongoing CVC capacity management

Wholesale Aggregation Route (Through Us):

• 1-2 weeks onboarding
• $0 upfront (pay-per-service model)
• Simple REST API
• We handle all NBN complexity

If you want to launch a retail ISP, MVNO, or bundled service business in Australia, wholesale aggregation is the fastest path to market.

Ready to start?

02 4398 7089 | hello@theitdept.au

We'll walk you through the technical requirements, help you size your NNI, and get you provisioning services within days.

Because launching an ISP shouldn't take a year.