Telstra and Optus could dominate NBN, as iiNet snubs key NBN Co agreement Monday, 20 January 2014. By MYRIAM ROBIN <http://www.smartcompany.com.au/technology/information-technology/35226- telstra-and-optus-could-dominate-nbn-as-iinet-snubs-key-nbn-co- agreement.html#>
The nations largest supplier of national broadband network services and third-largest broadband provider, iiNet, has refused to sign NBN Cos Wholesale Broadband Agreement. Telecommunications analysts say the whole rollout is under a cloud of confusion, and a new agreement may be on the way regardless. On Friday, iiNets chief regulatory officer, Steve Dalby, told The Australian that given iiNet would be liable for customer compensation if NBN Co does not connect users on time, and NBN had delivered less than 80% of services on time, his company was not willing to take the risk of the agreement. There is a real commercial risk for us around these lax customer service guarantees, which suggest that if a customer is not connected on time to the NBN or there are faults with the service, then we will be financially liable to compensate them, Dalby told the newspaper. Considering that the NBN Co does not meet customer appointments and has continually failed to meet its rollout targets means this is just too risky for us to sign on. If NBN Co's performance to date is anything to go by, they won't want to bind themselves to guarantees that could result in regulatory penalties. It's quite a rational approach by them, but it's ludicrous that we retail service providers have to foot the bill for their poor work, and I can't believe it is government policy. In the abscense of signing the new wholesale agreement, iiNet will keep operating on its current interim agreement, and so will continue to offer NBN services to its customers. For a company thats built its brand offering around customer service, missed appointments are a significant concern, says Telsyte communications analyst Chris Coughlan. But it could have dire effects for consumers. Telecommunications expert Paul Wallbank says the broadband companys refusal to sign the agreement could see the entire broadband market dominated by two players, which wasnt what was supposed to happen. However, he says he can understand iiNets reluctance to sign the agreement, as the telco does not have the market power of Optus and Telstra, and thus would be unable to bring as much clout to renegotiating the agreement should problems arise. Obviously Telstra and Optus are in a position where they can negotiate these disputes from a far more powerful position they own the infrastructure. The big question for the telecommunications industry is that the government are changing the scope of the project. So its very hard to see why you would be signing a wholesale agreement when you dont know what the wholesale arrangements are going to be. Frankly, its hard to see how anyone can be signing an agreement when no one knows what the physical network is going look like. And thats the mess we now find ourselves in with broadband policy. Thats an indictment on both sides of politics in Canberra. NBN Cos record of delivery so far is so dire they cannot be trusted to deliver on their side of the bargain, Wallbank says. Their commercial performance to date has been utterly abysmal. So iiNet are completely within their rights to do what theyve done. Its an assessment Coughlan agrees with. Everybody I know thats had NBN Co connected has had a nightmare of an experience over it, he says. Asked to speculate on what is likely to happen now that iiNet has refused to sign, Wallbank says things will likely remain in limbo until NBN Co brings out new, revised agreements when the scope of the project under the new government is known. The government has come out with its policy, but we dont know what the scope of the NBN project is. Before now, it was 93% fibre. Now we dont know. Its like trying to remodel your kitchen and not knowing whether youll be using gas or electricity. Commercially, its too risky to deal with NBN Co on these terms. And while all thats getting worked out, Australia is going to slip dramatically in its broadband coverage, and thats a problem. Message sent using MelbPC WebMail Server
_______________________________________________ Link mailing list [email protected] http://mailman.anu.edu.au/mailman/listinfo/link
