The NBN says it is now open to a new framework for access prices – but pressure was already mounting from the Government and other stakeholders
The whole NBN network would fall under the ACCC’s remit: The Australian competition authority, the ACCC, announced on Wednesday that it will seek feedback from industry on a new framework to regulate access prices for the National Broadband Network (NBN). The announcement came after the NBN said it no longer intends to undertake consultations directly about pricing in the longer term – something it has done until now for the largest part of its network. At present, the ACCC only has oversight on the technologies covered by a Special Access Undertaking (SAU) which includes FTTP, fixed-wireless, and satellite networks, representing about 25% of NBN connections. The remaining 75% (i.e. the Multi Technology Mix access technologies) are outside the SAU.
The problems of the current framework: Stakeholders have raised concerns that the current regime has not led to efficient price outcomes, lacks transparency, and poses the risk of cross-subsidisation where the NBN expands into contestable markets (e.g. the enterprise market). Small local providers have complained that some of the charges they face end up being a barrier to market entry, incompatible with the NBN’s commitment to promote competition at the retail level. In October 2020, the Minister of Communications issued a Statement of Expectations in relations to the ACCC’s functions and powers, highlighting NBN wholesale pricing as a priority and calling for a solution that delivers certainty for all stakeholders.
A new phase begins for the NBN: As a first step, the ACCC will host a roundtable with stakeholders, seeking views on an access pricing framework that covers the NBN’s whole network. The ACCC aims to finalise this new framework within the next 12 months. There are currently no indications as to what this new framework will look like, although the ACCC has previously noted that the NBN’s expenditure and revenues will require more oversight now that the rollout phase is complete, and the NBN is more similar to a “typical steady-state infrastructure provider”.
Lessons for other countries: The Australian model with a single wholesale-only provider remains almost unique in the world, but there may be lessons to learn for other countries nevertheless. The transition to a single national infrastructure provider is a serious possibility in Italy, although the merger between TIM and OpenFiber is reportedly at a standstill. The Italian Government is considering creating a consortium with all the country’s telecoms operators to encourage joint investment and speed up the rollout of gigabit-capable broadband.
Source: https://www.accc.gov.au/media-release/accc-seeks-industry-views-on-future-nbn-regulation
