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OK Telstra,OK TPG: NBN To End Direct Deals

Bowing to pressure from players such as Vocus, Telstra and TPG, and following accusations of preferential treatment given to companies such as Macquarie Telecom, NBN Co said it would hand the reins over to retail service providers (RSPs) for the entire direct contractual relationship.

NBN Co had given MacTel preferential commercial terms and pricing information ahead of its rivals, according to an investigation by the Australian Competition and Consumer Commission (ACCC), which issued a formal warning to NBN Co for discriminatory activity.

“Macquarie Telecom welcomes the decision by NBN Co to avoid direct enterprise deals, while continuing to educate corporate customers on the benefits of using NBN in conjunction with RSPs,” CEO Luke Clifton said.

In response to feedback, NBN Co said it will evolve its enterprise contracting model so that RSPs will in all cases have direct contractual relationship with enterprise customers. Previously, NBN Co has at times contracted directly with enterprise customers to build connectivity ahead of those customers engaging one or more RSPs to provide operational broadband services.

NBN Co yesterday said it will continue to engage with customers to “educate and stimulate demand for NBN wholesale services” but its activities with enterprise customers will stop directly with end users.

Paul Tyler, NBN Co’s chief customer officer for business sales and marketing, said: “We have proven in recent times that NBN Co has a key role to play in increasing the digital capability of large and complex Australian organisations, consistent with our purpose.

“We have unlocked substantial value, created choice for enterprise customers, and educated the enterprise and government market on the value that NBN brings to the nation.”

NBN Co said it will publish a consultation paper on the matter by February 7.

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