NBN Co cracks down on future critics

By Ry Crozier on May 23, 2011 6:45 AM
Filed under Telco/ISP

Ambiguous clause in draft contract.

NBN Co has warned ISPs not to criticise or blame it for broadband connection issues affecting businesses or consumers connected to the network.

In a revised wholesale broadband agreement (WBA) released late last week, NBN Co proposed an ambiguous new clause at E7 titled ‘Communications regarding Customer Products’.

“When dealing with Downstream Customers and End Users, Customer must not… criticise or attribute to NBN Co any fault or blame in connection with (i) Customer Products,” one part of the new clause stated.

Network status advisories published by ISPs to their customers routinely name the upstream (wholesale) provider as the source of an issue affecting end-user broadband or phone services.

iTnews raised concerns with NBN Co that the revised WBA could force ISPs to take the heat directly for any issues that affected network status, regardless of whether the issue occurred upstream of the ISP i.e. with NBN Co.

Spokesmen for wholesale providers Telstra and Optus declined to reveal whether similar anti-criticism provisions operated in their respective wholesale agreements with ISPs.

“Our wholesale contracts are commercial in confidence,” an Optus spokesman said. Telstra released a similar statement.

ISPs contacted by iTnews declined to comment publicly on the E7 clause, although at least one noted an understanding that the clause prevented ISPs from going to the media with issues before giving NBN Co adequate time to tackle them first.

An NBN Co spokesman said the clause was designed “to ensure issues that at times can be very complex are investigated and the root cause identified before information is passed to the downstream customer.

“If there is an issue impacting the operation or supply of the Customer’s Products, the NBN Co customer is free to advise its downstream customers about that issue at any time (if its impacting the service they provide),” the spokesman said.

“There is no prohibition on NBN Co’s customers [ISPs] communicating with their downstream customers about the existence of an issue contemplated by this drafting.

“The purpose of the ongoing consultation we’re undertaking is to identify areas of industry concern with the WBA and [we] look forward to their comments.”

The first draft of the WBA, released 27 October last year, saw Telstra, Optus, VHA, AAPT, iiNet, Internode, TPG and others make submissions on the proposed content.

That feedback has been incorporated into Version 2.0 of the WBA.

Industry had until 10 June, 2011 to make submissions on the current draft, including the E7 clause.

15 comments in this discussion

"If Ry's interpretation is correct, the effect of this clause would not practically affect any statutory rights of RSPs, but certainly makes plain to helpdesk supervisors that they need to coach ..."

By umbria

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Comments: 15

Rossyduck May 23, 2011 8:45 AM	Despite all the good intentions in the world we must remember this is a monopoly provider. I have yet to see a monopoly provider really give a toss about spending any time going into anything is depth - why would they - they know you can't go elsewhere. If you think the current telco's are bad, this is going to make the old Telecomm look like the most attentive organisation. I stopped worrying about these contracts when they put the clause in stating they could unilaterally vary.
brownbear May 23, 2011 8:49 AM	What a good idea. This means that if I have a problem with my service then my RSP can't fob me off by blaming it on the NBN Co. How refreshing that the company I have the contract with is the one responsible for delivering on that contract. This is what I thought happened in most commercial undertakings and is as it should be.
Mark D May 23, 2011 9:26 AM	@rossyduck: stop throwing the word monopoly around, its not a monopoly when other alternative providers do exist. Starting with ADSL and ending with 4G.
Res May 23, 2011 9:45 AM	Ahhhh this takes me back a few years, Telstra reborn... all over again.
Mitch May 23, 2011 2:35 PM	So the NBN can only be a one sided then. The rebirth of Telstra. Sigh
schneider May 23, 2011 2:38 PM	@Mark D, ADSL will be removed where the NBN exists as will the coax network! according to NBN supporters 4G will NOT be a competitor as it will not be fast enough and not have the right price point. If that is the case it WILL be a monopoly. @Brownbear. So if it the NBN's problem (swicth CPU utilisation over 100%) you would have the ISP blame themselves and not have the ability to allow someone to gather the statistics on the actual problems on the network? ISPs are under the same defamation laws as the rest of us if they were lie Telstra would make the complaint. They don't so I can only assume they are NOT lying. This is just another chapter in the massive "this doesn't look totally above board" book being written by the labour party!
djzort May 23, 2011 3:59 PM	free speech fail.
Digger11 May 23, 2011 5:41 PM	oh dear. As previous posters mention - Telstra MkII is coming.
Mordd May 23, 2011 8:47 PM	Ah yes its so incredibly easy to throw out the "Telstra 2.0" or w/ever other variation you like isn't it? I personally am so glad so many of you have a crystal ball and can see into the future, ah if only I had one myself hey. Sure its possible the NBN will end up being worse than telstra, but since they won't be providing the end service only the wholesale service I highly doubt it. Ah and look what I did there, I just blew the "Telstra 2.0" argument out of the water didn't I, since NBN is wholesale not wholesale + retail were comparing apples with oranges right, so the comparisons are irrelevant. Hmmm much like the anti-NBN crew are irrelevant as well, they will whinge and whine on the sidelines but they ultimately won't change anything, just amuse the rest of us with their inane and insane rantings. This is your NBN "truth of the day" brought to you by Mordd :)
Mordd May 23, 2011 8:48 PM	Now if they structurally seperated Telstra into retail and wholesale arms then yes you could start comparing with NBN Co. - although last I checked they backed down on that idea and the legislation never even made it to committee stage let alone actually getting to a vote.
Rossyduck May 24, 2011 10:00 AM	Unfortunately the monopolist arrogance is already there. Quigly defends his monopoly in the Joint committee hearings and promises that his people are all motivated to deliver the best service so it does not matter if he is a monopoly ..... Joke. Anyone tried to deal with these annointed experts recently ?. It is not a pleasant experience and if anything to go by we are in for a ride from hell.
midspace May 24, 2011 10:59 AM	There are so many ways around this clause. The ISP could just say ... "There is an upstream problem, which the wholesaler is currently investigating. ETA for resolution is unknown." In this case, NBN isn't mentioned (only implied), and isn't blamed for the issue (not impled at all). Most people would of course read between the lines, and blame the NBN regardless. It's just a matter of wording (as crap as the contract's wording is).
deepthroat May 24, 2011 12:24 PM	@Mordd - the legislation passed.
nomercy May 26, 2011 10:03 PM	Unable to accept criticism ? Not even a constructive one ? Unable to accept a fault ? What sort of democracy is this ? Thats like saying, I drive and you sit in the passenger seat, if I crash its your fault. A dictatorship, is that how we run this country ? What happened to freedom of information ?
umbria Jun 2, 2011 12:15 PM	If Ry's interpretation is correct, the effect of this clause would not practically affect any statutory rights of RSPs, but certainly makes plain to helpdesk supervisors that they need to coach operators to proactively take responsibility to fix the client's problem, however caused. There are always ways to telegraph to a customer that the problem appears to be upstream and you will act on their behalf to resolve it. NBNCo itself appears before about six different parliamentary committees each year, and no contract can prevent an RSP from informing MPs and Senators of a problem to investigate officially without resorting to childish criticisms to the customer. Sounds like a storm in a teacup to me.