NBN hybrid-fibre deal worries ACCC

Telstra stands to gain a “head start” over rivals under its HFC rollout deal with NBN Co, the competition watchdog says.

The NBN rollout in Alice Springs.

The Australian Competition and Consumer Commission has put a spanner in the works for Telstra and NBN Co’s job of building the hybrid-fibre coaxial (HFC) portion of the National Broadband Network (NBN).

According to the competition watchdog, Telstra stands to gain a “head start” over its rivals under the $1.6 billion agreement it has signed with NBN Co to help roll out and upgrade its HFC network.

While acknowledging that Telstra’s involvement in the process will help NBN Co roll out the network faster, the ACCC said the “potential competition implications” couldn’t be overlooked.

The regulator is also unconvinced by the measures proposed by NBN Co and Telstra to mitigate the risks of the incumbent telco getting an unfair advantage, including a guarantee to make NBN HFC connections available to all service providers simultaneously, making sure Telstra follows NBN Co’s design directives and the telco providing a “white label” activation and repair services to NBN Co.

“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 added that it is in consultation with both Telstra and NBN Co to check whether the proposed measures have been put to practice and ensure that all access seekers have the surety they need on Telstra not picking up an unfair advantage.

According to the ACCC, all NBN access seekers will need to be provided with additional information concerning the rollout of the NBN, including regular reports that detail progress made in making the NBN available in each service area.

“Putting these arrangements in place will also, in the ACCC’s view, facilitate a faster resolution to any competition issues that may arise from the service delivery agreements,” it said.