Monday, 09 April 2018 05:09

Split up NBN Co before rollout ends: ACCC Featured

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The Australian Competition and Consumer Commission has recommended that the NBN Co, the company rolling out Australia's national broadband network, be split into two entities before it is privatised after the rollout ends.

The suggestion was one of eight recommendations made by the competition watchdog in its final report on the communication sector which was released on Thursday.

It said that while the government should begin to plan for future NBN Co privatisation, it should ensure that measures were in place to enable a split that would facilitate greater competition based on infrastructure.

"The form of any disaggregation and privatisation should also be part of the terms of reference for the Productivity Commission’s future inquiry into regulatory, budgetary, consumer and competition matters relating to the NBN," the report said.

Another recommendation called for Telstra, TPG, Optus and Verizon to provide adequate information about assessment of peering requests from other networks.

"This would provide prospective peering parties some guidance on the criteria they are required to meet with each of the TTOV networks," it said.

The ACCC also recommended that that Regional Broadband Scheme should be extended to wireless services. It said that the extent to which wireless services constrained fixed-line broadband services was a work in progress and this should not be blocked through policy or regulation to help NBN Co.

Under the RBS, the government plans to impose a charge on fixed-line networks that provide high-speed services in competition with NBN Co to help fund the NBN Co’s non-commercial fixed wireless and satellite services supplied in regional and remote areas.

"Greater substitution across technologies would also bring into question the suitability of the RBS charge as a mechanism to fund non-commercial NBN services," the report said. "We propose direct budget funding as it would be the least distortionary alternative and not serve as a means of protecting the NBN from network competition."

The report also urged the government not to use regulation to constrain competition with NBN Co; called for telcos to co-operate with regulators and government agencies in helping consumers against scams; urged constant revision of NBN prices to help in efficient use of the network; and urged the extension of the government's implementation of the consumer data right to the telco sector.

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Sam Varghese

Sam Varghese has been writing for iTWire since 2006, a year after the site came into existence. For nearly a decade thereafter, he wrote mostly about free and open source software, based on his own use of this genre of software. Since May 2016, he has been writing across many areas of technology. He has been a journalist for nearly 40 years in India (Indian Express and Deccan Herald), the UAE (Khaleej Times) and Australia (Daily Commercial News (now defunct) and The Age). His personal blog is titled Irregular Expression.

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