Telstra makes case for NBN cherry-picking

 

Telco says market theory argues it "should be allowed" to pick and choose.

Telstra has a "difference of opinion" with the Government and a key Greens senator on proposed cherry-picking provisions in NBN legislation before Parliament, saying the controversial rules should be culled.

Director of government relations James Shaw today said the carrier wanted to see the rules "repealed".

Anti cherry-picking rules were to stop carriers other than NBN Co rolling out superfast networks "only in high-income and low-cost, high-density areas and then undercutting NBN Co's average price due to the lack of any need to subsidise operations in higher-cost areas", according to the NBN implementation study.

Greens senator Scott Ludlam argued that private industry should not be allowed to "pinch easy bits" ahead of the NBN, leaving taxpayers to foot the bill for fibre rollout to the more expensive parts of the country.

He argued that cherry-picking would interfere with the Government's plan to cross-subsidise more expensive regional rollout costs "by charging a little bit more in the cities".

"How can they [NBN Co] do that [cross-subsidy] if you cherry-pick?" Ludlam said.

Shaw said the "theory of markets" supported cherry-picking.

"We look at it through the prism of economic efficiency," he said. "If a market can function with that competition in there, then it should be allowed".

Senator Ludlam responded, saying that "sounded like something out of a textbook".

Shaw said it was a policy area where Telstra had a "difference of opinion with the Government".

Carriers and ISPs have condemned the anti cherry-picking rules, arguing they go too far and could stifle even simple upgrades to existing fibre networks.

Various amendments and exemptions have been proposed, while others such as Telstra have called for the rules to be scrapped altogether.

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


Telstra makes case for NBN cherry-picking
 
 
 
Top Stories
Beyond ACORN: Cracking the infosec skills nut
[Blog post] Could the Government's cybercrime focus be a catalyst for change?
 
The iTnews Benchmark Awards
Meet the best of the best.
 
Telstra hands over copper, HFC in new $11bn NBN deal
Value of 2011 deal remains intact.
 
 
Sign up to receive iTnews email bulletins
   FOLLOW US...
Latest Comments
Polls
Who do you trust most to protect your private data?







   |   View results
Your bank
  39%
 
Your insurance company
  4%
 
A technology company (Google, Facebook et al)
  8%
 
Your telco, ISP or utility
  7%
 
A retailer (Coles, Woolworths et al)
  2%
 
A Federal Government agency (ATO, Centrelink etc)
  20%
 
An Australian law enforcement agency (AFP, ASIO et al)
  14%
 
A State Government agency (Health dept, etc)
  6%
TOTAL VOTES: 1758

Vote
Do you support the abolition of the Office of the Information Commissioner?