NBN cherry-picker laws introduced

 

Fibre operators face new future.

The Government has introduced draft laws that, if passed, will force carriers that build new or upgrade existing fibre networks to provide an open access, wholesale service to internet retailers.

The NBN Access Arrangements bill was introduced to the lower house last week at the height of debate on the Telstra split bill in the upper house.

In part, the Access bill addressed concerns raised in the NBN implementation study over "carriers other than NBN Co" cherry-picking low-cost, high-density areas to build or upgrade high-speed fixed networks before the NBN could arrive.

Communications Minister Stephen Conroy's office told iTnews last month that the Government would adopt the study recommendations to combat the threat of cherry-picking by introducing these draft laws.

According to explanatory notes first reported by telecommunications journal CommsDay, the proposed laws would put "specific technical and open access requirements on carriers who build or upgrade fixed-line superfast access networks after 25 November 2010, the date of the Access Bill's introduction into the Parliament."

The laws would apply to carriage services of "more than 25 Mbps" on the downlink.

Carriers would be required to meet "codes and standards based on NBN Co specifications" when they built or upgraded their networks.

They would also be required to offer a Layer 2 bitstream service – essentially "a basic connectivity service, of a wholesale nature" – on a non-discriminatory basis.

The rules would affect anyone building out or upgrading fibre-to-the-premises (FTTP), hybrid fibre-coaxial (HFC) or fibre-to-the-node (FTTN) networks.

"The rule would not apply, however, to point-to-point connections provided to single individual government or corporate end-users or proprietary networks," the explanatory notes stated.

Telco reform

Although the Senate has completed sittings until February next year, the House of Representatives was due to sit once more today.

It was expected that the Telstra split bill would be returned from the Senate with the amendments agreed Friday before parliament commenced its summer break.

The reform agenda would likely stay on the public radar, however, with the Government expected to reveal a more complete version of the 400-page NBN Co business plan sometime next month.

The Government released a 36-page summary of the plan last week in return for the crucial votes of the independents in the Senate.

Copyright © iTnews.com.au . All rights reserved.


NBN cherry-picker laws introduced
"So I seem to be noticing that a good majority of people are complaining about wholesale competition. Now, I don't know what you are all thinking but there is no such thing as wholesale competition..."
By Bazwalt
 
 
 
Comments: 4
Rossyduck
Nov 29, 2010 4:16 PM
Lets hope whats good for the goose, is good for the gander. I hope our pollies ensure that NBN Co will not overbuild existing FttH.

The bigger worry is the NBN Co mandated standards - great if you assume NBN Co are best and brightest - but just not the case. Would much prefer to see any laws mandating International best practise as opposed to locking us into narrow NBN Co way of doing things.
PeteJ
Nov 30, 2010 1:17 AM
Looks like all the government and NBN are doing is destroying the possibility of true wholesale competition in this country. The ACCC made sure Telstra wholesale was cheaper than building a competitive network which ultimately stifled development Now there will only be one company with no competing forces to drive development and price controls. In 20 years I think a commonly used phrase will be ... "It was so much better in the old days of Telstra"
gteeb
Nov 30, 2010 9:03 AM
@PeteJ "Looks like all the government and NBN are doing is destroying the possibility of true wholesale competition in this country."

Sorry but there is no such thing as wholesale competition for fibre telecoms. Seriously, do you think there is money or even space to put multiple cables to the home? It's a contradiction in terms invented by existing or would-be monopolists.

There is no wholesale choice!

What people care about is robust retail competition, with a single publically-owned wholesale provider whose remit is to provide a technologically excellent service, earning sufficient profits to pay for maintenance and expansion. I don't know if the NBN will do that but its better than dog's breakfast of local wholesale monopolies leveraged to become restrictive retail monopolies.
Bazwalt
Nov 30, 2010 2:53 PM
So I seem to be noticing that a good majority of people are complaining about wholesale competition.

Now, I don't know what you are all thinking but there is no such thing as wholesale competition. If there were, you would have multiple providers running excess amounts of fibre to home premises.

Physically, it's not possible. Not in this industry. You have to have a sole entity managing the infrastructure. What you really ought to be focusing on is ensuring that that the wholesale and retail sectors are cost-affordable and that the retail market is fair.

The NBN is not destroying wholesale competition - because its impossible for such a thing to exist. The NBN IS opening up the possibility of a competitive retail industry.
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