New Telco Policy A Win For NBN Co, Retailers Under Pressure
The NBN Co is set to benefit from revisions to the Telecommunications in New Developments policy, enabling the government-backed enterprise to further “operate commercially” and reduce costs – potentially adding pressure to providers such as Telstra.
The update aims to foster greater competition between network providers, and help to drive costs down for developers and end-users.
Disclosed in a media release from the Minister for Communications, Cyber Safety and the Arts, Paul Fletcher, new revisions seek to provide Aussies who are moving into new housing or apartment developments with “better and cheaper access to high speed broadband.”
“The revised policy released today reflects the modern telco landscape and will promote a more efficient, competitive and sustainable marketplace in servicing new developments,” adds Minister Fletcher.
The “timely” new policy is said to follow significant changes in the telecommunications landscape, with the last update occuring in 2015.
“While core elements of the policy will continue, changes mean that NBN Co can better respond to growing competition,” states Minister Fletcher.
“NBN Co will be able to charge below the maximum prices set out in the policy to keep costs down and will have greater flexibility to install competing infrastructure where it is commercially viable.
“Greater competition will help drive lower charges, reducing the costs of developments for developers and in turn consumers.
“NBN Co will also be more responsive to market demand and promote further choice and innovation, which in turn will spur greater competition from other players in the new developments market.”
The Ministers’ Office asserts the NBN Co “must operate commercially” as a Government Business Enterprise, and remain subject to strong competition laws and competitive neutrality rules.
Today’s telco enhancements follow the landmark new Statutory Infrastructure Provider laws – introduced in July 2020 – which mandate carriers that are contracted to service new developments to provide infrastructure and services for those developments on an ongoing basis.