NBN a threat to Telstra competitors says analyst

Stan Beer
Wednesday, 08 July 2009 07:23

IT Policy - Government Tech Policy

"When the industry submissions were released on 12 June, it became apparent that most industry operators, particularly Telstra’s competitors, were focused on the short-term structural separation of Telstra’s copper access network," Kennedy says.

"In contrast, scant attention was paid to the regulatory requirements for an NBN. This is why the government has been forced to seek further input.

"We believe that this reflects a gap between the industry and the government. While the government is committed to the long-term goal of building an FTTH access network in Australia, Telstra’s competitors have far more interest in the regulation of the existing copper access network than in an FTTH network that will take years to build."

In fact, according to Kennedy, the issue underlines how the telecommunications industry as a whole - including Telstra and its competitors - has interests that diverge from those of the Government in relation to the NBN.

"This problem underlines how tricky the transition from copper to NGN will be. In fact, the policy challenge can be summed up as a complex process of transition management," Kennedy says.

"The apparently minor incident of a press release (seeking further input in NBN impementation) points to the more substantial reality: that the government, Telstra’s competitors and Telstra itself do not have the same incentives in this process.

"As a result, the Minister cannot assume that he will have the automatic support of either side of the industry for the government’s NBN objectives."