Optus attacks Telstra after CEO Andy Penn slams NBN’s high prices, warning Aussies could be disadvantaged

Optus has joined the NBN stoush, accusing Telstra of hypocrisy after CEO Andy Penn slammed the fibre network for soaring costs that could disadvantage consumers by forcing them onto the wrong technology.

Optus has lashed Australia’s biggest telecommunications operator after it yesterday criticised the National Broadband Network’s pricing and claimed the high prices would force consumers on to the wrong technology.

Telstra chief executive Andy Penn issued the warning yesterday at the National Press Club today, slamming the NBN for its “doubling” the wholesale price of broadband in Australia, which he said would disadvantage both broadband providers and, ultimately, consumers.

But Optus vice-president of public and regulatory affairs Andrew Sheridan hit

“Unfortunately, wholesale broadband prices have more than doubled under the NBN and are set to go even higher,” Mr Penn said.
But Optus vice-president of public and regulatory affairs Andrew Sheridan hit back, accusing Telstra of hypocrisy.

It was hypocritical of Telstra to attack the National Broadband Network’s high wholesale costs, according to Optus vice-president of public and regulatory affairs Andrew Sheridan. Picture: Supplied

“When Telstra was the monopoly wholesale provider, it spent the better part of a decade fighting the regulator through the courts to defend its high access prices,” Mr Sheridan said, according to Nine Newspapers.

“It is a bit rich for Telstra to be lecturing NBN on wholesale price levels.”

“There is scope for NBN to adjust the current price structure to improve the overall service value for users but ultimately the NBN must make a return on the substantial taxpayer investment.”

NBN chief executive Stephen Rue launched a pre-emptive hit on Telstra’s comments before the National Press Club address. Picture: Hollie Adams/The Australian

Mr Penn said yesterday that the increased costs made it unprofitable for operators like telstra to resell the NBN.

“Now I do not expect you to feel sorry for a large company like Telstra, but we do need to understand the unintended consequences,” he said.

Mr Penn said NBN’s high prices could force consumers to look for cheaper ways to access the internet in Australia, and could see them replace more reliable, fast, fixed broadband connections with mobile internet plans, which was “the wrong technology for their needs”.

READ MORE: Why my home is ready for the NBN but I am not

“Ultimately, customers should not have to worry what technology they are using — what they need is the most suitable and economically available technology to meet their needs,” he said.

“This is why it is important the economic structure of our industry does not create an unnatural bias toward one form of telecommunications technology over another.”

Telstra would not market 5G mobile broadband plans as a replacement for broadband in the home, Mr Penn said, but he warned “one should assume that our competitors will,” putting consumers in a bad position.

Telstra chief executive Andy Penn said NBN’s high prices could force consumers to look for cheaper ways to access the internet in Australia. Picture: Supplied

Mr Penn’s call for NBN Co to lower its wholesale broadband prices follows similar messages from Vodafone, Aussie Broadband, and Vocus over the past week.

But NBN chief executive Stephen Rue partly blamed Telstra for its high prices in a pre-emptive statement today, saying the price wouldn’t be as high if the company didn’t have to pay the telco to access its equipment.

“Let’s not forget that the sum of all NBN payments to Telstra was around $2 billion this year,” he said. “This has an obvious impact on wholesale prices.”

Earlier this month, the NBN revealed more than 10 million Australian homes and businesses were able to connect to its network.

However, documents show just over half of those consumers had actually connected to the network, with 5.6 million using NBN services.

Originally published as Optus attacks Telstra after CEO Andy Penn slams NBN’s high prices, warning Aussies could be disadvantaged