Australia: Critics say NBN rules cripple ACCC power

Smaller rivals to Australia’s leading broadband carrier Telstra have raised concerns that the new regulations for the National Broadband Network cripple the power of competition authorities to ensure a fair market.

Reports say the Competitive Carriers Coalition has sent a notice to the Department of Communications, warning officials of Telstra’s ability to leverage its dominant position to lock in customers. Specifically, reports say, the CCC is concerned that the rules allow the NBN to patch the gaps in Telstra’s HBN network while it is still owned by Telstra.

”If it is NBN Co’s intention to ‘patch’ the gaps in the HFC footprint before the ownership transfer to the extent of completing new customer lead ins,” the CCC’s submission writes, “and for Telstra to be able to utilize these new lead ins to acquire new retail customers, it would, in effect, mean the taxpayer was funding an expansion of Telstra’s monopoly addressable market for HFC-based services and service bundles.”

The group is now advocating for a 24-month cap on Telstra contracts and for a limit to penalties implied on Telstra customers for switching broadband providers.

In regards to the Australian Competition and Consumer Commission, the broadband group argues that the NBN rules are designed to block the regulator from forcing Telstra to offer its HFC network to competitors. Without the ACCC’s involvement, the plan “risks providing a signal to Telstra that opportunities to exploit market power opportunities in relation to its HFC network are likely to be profitable.”

Full Content: The Register

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