The latest in a line of draft Bills relevant to the implementation of the National Broadband Network could force Telstra to give up its wholesale supply business, says a Brisbane technology law specialist.
Recently released by the Department of Broadband, Communications and the Digital Economy, the latest Bills state that the NBN Company, who will own and operate the national broadband network, is to be wholesale only and open access to maximise competition. However, the Bills also give the Communications Minister the discretion to allow the NBN Company to supply retail services to certain end users, such as government agencies.
According to Michael Morris, head of HopgoodGanim’s Intellectual Property and Technology team, as Telstra provides both wholesale and retail services, it can either compete with the NBN Company or co-operate with it by selling the wholesale arm of its business. He adds that Telstra and the government have different views as to the price the government should pay to acquire Telstra’s wholesale business.
“As Telstra derives much of its business from supplying services to government departments, it may now be forced to sell the wholesale arm of its business at a less than favourable price, or risk losing its government retail work to the NBN Company”, he said.
“Telstra is one of the most integrated telecommunication companies in the world, as it owns the fixed line copper network in Australia that connects every premise and business, including Telstra’s competitors.”
“Telstra’s combined wholesale and retail structure has, for years, created issues between Telstra and its competitors, as they are forced to negotiate wholesale access to Telstra’s network.”
“The power granted to the Communications Minister is a fundamental shift from one of the original purposes of the legislation - to establish a “wholesale only company” that will change the telecommunications landscape by eliminating the conflict of interest that currently exists. If the NBN Company can compete on a retail level, then arguably this goal is no longer met”.
Contact:
Esther Cohen, Communications Advisor
Tel: 07 3024 0192
