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No. 1 Story

ACCC clears Optus to scrap HFC network and use NBN instead

The ACCC has cleared, provisionally, the proposed deal between Optus and NBN Co under which Optus is to be paid around $800m to shut down its HFC network and transfer customers onto the NBN. read more

NBN could bring real competition to voice market

Opinion and Analysis

Now we know the NBN is going to be an independent to-the-premises network, the gates will open for true competition in voice services.

Would-be voice providers should no longer be limited to reselling Telstra's service or offering VoIP as part of a naked ADSL bundle (which includes an element of 'line rental' for using Telstra's copper).

The barriers to entry will be relatively low, and the government has committed to open access to the NBN.

It'll be an opportunity for VoIP providers to address a broad market without having to mention VoIP or requiring an existing broadband connection.

They'll be able to install what to the customer is 'just a phone.'

And if they have any sense, they'll knuckle down and establish a peering system so that calls between the various providers' customers aren't routed through Telstra's network.

The potential fly in the ointment is the initial fee for connecting specific premises to the NBN. If it's too high, the payback period may be too long for customers that just want voice.