Optus lobbies for ULL regulation with $3.5b benefit claim

Stuart Corner
Sunday, 07 May 2006 20:21

IT Policy - Regulation

Optus has released a report it has commissioned from the Allen Consulting Group claiming it demonstrates that a competitive national ULL-based broadband rollout would boost GDP by 0.3 percent ($3.5 billion) by 2016-17.
"But the right decisions by Government – including a ULL price which is based on Telstra's costs and varies by geographic band – are vital to secure this economic benefit for Australia," Optus claims.

The modelling assumes a rollout to all 642 Telstra exchanges in Band 1 and Band 2 around Australia, at a cost of $360 million. This would enable Telstra's competitors to deliver competitive telephony and data services to around 80 percent of Australian households and businesses.

"The economic boost would occur because a competitive DSL rollout would increase business take up of broadband – which in turn would deliver productivity benefits," said Dr Jerome Fahrer, director of the Allen Consulting Group.

Paul Fletcher, director of Optus Corporate and Regulatory Affairs said: "Optus has already rolled out to over 100 Telstra exchanges, and we are on track for our target of 340 exchanges by the end of 2007. Unfortunately, Telstra is working hard to destabilise the investment climate for ULL.

"It is vital that we get an early, clear statement from Government that it will not be overruling the ACCC on ULL price setting," Fletcher said. He added that while discussions about a FTTN network are important, broadband technology is only half the story – with market structure being the other half of the story.

"The incumbent has an extensive DSL network; and ULL offers the chance for an extensive competitive DSL network in a reasonable time period. The Allen report shows the clear benefits of securing that outcome."

The Allen report is available on the Optus web site, here.