TPG Telecom and Vocus Group have accused NBN Co of moving into their territory, after it proposed a plan to connect businesses directly with data centres.
This, argues the telcos, makes NBN Co a direct competitive to the companies it was designed to serve.
TPG Telecom voiced “serious concerns” about the proposal.
“It is unclear to TPG how NBN could consider this investment to be either efficient or consistent with its legislated mandate to provide connectivity to premises,” it said.
“It is also difficult to see how there could be a policy justification for NBN to overbuild in what is a highly competitive and well-served market, when it is advocating for billions more in taxpayer funding to upgrade its residential networks.”
The problem is that many Aussie telcos run direct fibre into data centres. This tax-funded push by NBN to enter the same market would undercut the profits of these companies.
“This raises a serious question about whether NBN is using its government mandated monopoly in residential markets to cross-subsidise its activities in competitive markets,” TPG said.
Likewise, Vocus is “strongly opposed to NBN’s entry into the well-served and competitive data centre backhaul market,” a spokesperson from the telco said.
“NBN’s proposed enterprise ethernet to data centres product will distort competition in a well-served market and disincentivise private investment by overbuilding competitive infrastructure.”
The NBN, however, argues there is demand for it to enter this space.
“Previous feedback from internet providers has indicated there is interest in NBN Co delivering NBN Enterprise Ethernet into data centres,” a spokesman said.
“Based on this feedback, NBN Co entered into formal consultation with internet providers to understand the demand for this proposed offering.
“Product consultation is a normal part of our standard process to engage our industry partners on potential new products or services, or any potential changes to existing products and services.”
