NBN monopoly strengthened while competition options are kept for the future

The Government, after a full year of reviews into the NBN, has made its first tentative steps into putting its stamp on Australia’s telecommunications industry with new policy reforms and revised deals between NBN Co, Telstra and Optus announced over the last week.

Rather than taking on any bold new initiatives, as recommended by the Vertigan Review, to re-create a competitive infrastructure market for Australia’s telecommunications market, the Government has opted for a minimalist change focussed on technologies rather than market structure.

Somewhat surprisingly the Government has announced plans to effectively strengthen NBN Co’s broadband infrastructure monopoly rather than subject it to more competition. Although the regulatory reform paper states “the Government is seeking to establish a more competitive regulatory framework” the reality is much different.


This article appeared first in the Australian Financial Review on 17 December 2014 – click below for access (subscription required)

screenshot-www.afr.com 2014-12-18 19-55-00