NBN Co backs down on business push

NBN Co will stop directly contracting business customers, after telco anger over the wholesaler’s intrusion into the retail market.

The NBN rollout.

NBN Co is going to stop making deals directly with business customers, in a major win for telcos incensed by the National Broadband Network wholesaler’s intrusion into the retail market.

The decision to change the way it engages with enterprise customers is a significant backdown from NBN Co.

Under the new contracting model, announced on Thursday, NBN Co will let the telcos deal with businesses as they sign up to the NBN, removing itself from the retail landscape.

Previously, NBN Co has at times contacted enterprise customers directly, knocking the retail telcos out of the conversation.

That direct approach, along with NBN Co rolling out its own fibre into commercial buildings already covered by existing networks, came under concerted fire from telcos last year, with Vocus chief executive Kevin Russell labelling it a severe breach of NBN Co’s mandate.

NBN Co on Thursday said the former contracting model had served its purpose, especially in making businesses aware of the services available over the NBN.

“We have proven in recent times that NBN Co has a key role to play in increasing the digital capability of large and complex Australian organisations, consistent with our purpose,” NBN Co chief customer officer business, Paul Tyler said.

“We have unlocked substantial value, created choice for enterprise customers, and educated the enterprise and government market on the value that NBN brings to the nation.”

NBN Co isn’t disbanding its enterprise engagement team altogether under the new model, with the company saying it will continue to engage with enterprise customers to understand their infrastructure requirements and to educate them about the services available over the NBN.

Unlike the NBN services available to households, businesses can buy ultra-fast and reliable broadband services from telcos to meet their needs.

NBN Co will also release a telecommunications industry consultation paper to seek views on how any sales leads or inbound interest should best be shared with the industry on a transparent and non-discriminatory basis.

The latest concession from NBN Co comes hot on the heels of the company agreeing to no longer roll out its own fibre into commercial buildings in direct competition with existing networks.

Instead the company will buy spare capacity from telcos to serve business and government clients.

“To date, while we have usually installed new fibre connections to large customer locations when requested, we have made some limited use of existing fibre when we have done so,” NBN Co chief strategy and transformation officer Will Irving said on Tuesday.