NBN and Telstra query ‘won’t slow rollout’: Rod Sims

Rod Sims says the ACCC’s call for further clarity on Telstra and NBN’s HFC deal won’t slow the network’s rollout.

Australian Competition & Consumer Commission boss Rod Sims is confident the competition watchdog’s call for further clarity on Telstra and NBN’s $1.6 billion hybrid-fibre coaxial (HFC) agreement is unlikely to slow the rollout of the network.

“We don’t see this slowing down the rollout in any way, all NBN Co may need to do is hire an extra staff member to present the information to us,” Mr Sims told The Weekend Australian.

The competition regulator yesterday threw a spanner in the works for Telstra and NBN after it highlighted continued concerns about the incumbent telco eking out an unfair advantage from the HFC agreement. Under the terms of the deal, signed in April, Telstra will help roll out and upgrade its HFC network.

While acknowledging that Telstra’s involvement in the process will help NBN roll out the network faster, the ACCC said the prospect of Telstra getting a head start and the “potential competition implications” of that on end users couldn’t be overlooked.

“We totally understand why NBN Co wants to use Telstra for this job, if I was NBN Co I would pick them to be the service provider,” he said.

Telstra’s HFC network is critical to NBN’s plans to deliver broadband to 2.8 million premises using pay-TV cable. The company has already reduced the overall HFC footprint by 1.2 million premises as the costs of delivering the technology push up.

According to NBN’s 2017 corporate plan, costs associated with connecting premises to the HFC network have increased from $1800 per home to $2300. With the Optus HFC network proving to be a difficult fit for NBN, the company is relying on Telstra’s expertise to light up the HFC network as quickly as possible.

Mr Sims added that given the potential for Telstra to get a leg-up on its rivals as it brings the HFC network up to speed there was a need for robust caveats to be put in place.

While NBN Co and Telstra have put forward a number of measures to mollify the regulator’s concerns, Mr Sims said that it was important there was complete clarity on every aspect of the process.

“What we are asking for is all the relevant information to be made accessible or we may potentially mull the prospect of introducing recordkeeping measures,” he said.

NBN and Telstra have committed to a guarantee to make NBN HFC connections available to all service providers simultaneously, ensure Telstra follows NBN’s design directives and the telco provides “white label” activation and repair services to NBN. “The ACCC’s view is that the agreements could still pose a significant risk of distorting or otherwise lessening competition in the supply of broadband services unless all NBN access seekers are equally able to plan the commencement of their services over the NBN, and unless Telstra carries out the activation and assurance work for NBN Co in a way that does not disadvantage other NBN access seekers,” the ACCC said in its report.

It was consulting Telstra and NBN on whether the measures have been put in to practice.