|
Internode managing director Simon Hackett
has reiterated his call for the Federal Government’s planned National Broadband
Network to use competitive tension to deliver affordable broadband for consumers.
Responding to Telstra’s National Broadband
Network (NBN) submission, Mr. Hackett said ongoing consumer benefit required
the retention of ADSL-based broadband services beyond the transition period to the
planned Fibre to the Node (FTTN) system.
In Telstra’s NBN submission, it proposed
that the Federal Government should not force the National Broadband Network
operator to “accommodate old and new technologies, which are not compatible”.
Mr. Hackett said Telstra’s “incompatibility” claim was
not based on technical data. “The 'old'
(competitive ADSL2+) and the 'new' (Node-based VDSL2) services are in fact technically compatible,”
he said.
With appropriate software configuration settings, ADSL2+
can coexist in the new VDSL2 environment. To claim they are not compatible is a
Telstra excuse that is driven by its target profit levels rather than consumer
outcomes.
“The NBN is a potentially disruptive change that has the
potential to increase costs for consumers by undermining competition, so a “hybrid”
model – where ADSL2+ services compete with the NBN’s FTTN service - is
desirable to ensure that the market drives consumer benefit rather than just
rely on regulation.
“Telstra’s demonstrated track record of advantaging its own
retail operations over services offered to its wholesale customers should cause
concern to legislators. Telstra could comply with the letter of the law – by
providing access seekers with ‘core wholesale services’ running at 12 megabits
per second, as specified in the NBN proposal – while its own retail operations
take advantage of ‘non-core’ opportunities such as faster services running over
the network.
“Retaining access to competitive ADSL2+ services nationally
is clearly the way to ensure that competitive tension remains in the
marketplace, so that the NBN doesn't just result in consumers paying higher
prices for services they already obtain from broadband providers today.”
In its own NBN submission, Internode stated
that the consequences for consumers of completely cutting copper wires leading
to the exchange every time a new Node is deployed would be detrimental and
long-lasting. These effects would include:
-
Higher
prices: Replacing the
current diversity of services with an FTTN monopoly will destroy competitive
tension. Only the continued presence of competitive services in the market can
provide sustainable protection against “monopoly rent” being extracted from
consumers
-
Less
consumer choice: Losing
access to ADSL2+ services and price points invites the risk that new services
may offer worse price/performance and actually drive consumer benefit backward
-
Stalled
deployment: Regardless of
who wins the tender, impacted parties will take legal action to recoup their
lost investments or lost future earnings, substantially delaying the new
network
-
Stranded
investments: Massive
investments made over many years in the existing ADSL2+ facilities-based access
regime will be destroyed.
The Internode NBN submission cites
international evidence proving that an ADSL2+ and VDSL2 “hybrid” model works in
practice, not just in theory. Using the appropriate configuration of the VDSL2
DSLAM devices makes their power masks compatible with the existing ADSL2+
service, without significantly degrading the performance or range of either.
The Internode NBN submission also cites the
use ‘Automated MDF’ (AMDF) equipment to allow each consumer the choice of when
to move their specific line (under software control) from their existing
service over to a potentially more expensive NBN-based service. Using an AMDF,
each Node can still be constructed economically, but in a manner that preserves
consumer choice and competitive tension.
“The hybrid approach is the most pro-consumer
approach to building the NBN,” said Mr Hackett. “This isn’t about handing anyone a
monopoly on a plate: It is about maximising consumer outcomes and choice as the
priority.”
Internode is a first tier IP carrier committed to using broadband
technology to redefine the national telecommunications environment. The
Australian-owned company is a trailblazer that delivers broadband
services to individuals and businesses throughout Australia.
Internode PR for media assistance: Impress
Media Australia
www.impress.com.au
Call John Harris
on (08) 8431 4000 or email
This e-mail address is being protected from spam bots, you need JavaScript enabled to view it
.
|
