NBN could bring real competition to voice market

Stephen Withers
Tuesday, 07 April 2009 07:50

Opinion and Analysis

With few exceptions, Internet connectivity for homes has piggybacked on another service. Is that about to change?

When the Internet boom began, we used dial-up modems that took over our phone connections while they were active.

When Telstra and Optus rolled out cable TV, a portion of the capacity of both systems was used to deliver broadband.

ADSL uses the 'spare' conductors in a phone line to provide Internet connectivity without interfering with normal voice calls.

And when it comes to mobility, the GSM and 3G voice networks have provided the platform for data traffic.

Now, the decision to go for fibre to the premises for the bulk of the NBN (National Broadband Network) is set to turn that situation on its head.

Australia will have a high-speed wholesale data network that can be used to deliver voice and other services without suppliers having deal with a large and established competitor.

It seems inevitable that both Telstra and its competitors would remain unhappy with a situation where everyone - except Optus, for some of its business - ultimately relies on Telstra's network.

Whatever the industry regulator decides, someone always feels hard done by. It's a bit like a parent having to arbitrate between young siblings.

How does that change with the NBN? Please read on.