Oonagh ReidyThe federal government has ‘refined’ its fibre provision arrangements, giving NBN Co and Telstra the job of fibre supplier, in the last resort.The “refinements to the arrangements for the provision of fibre” in new developments were announced today by the Minister for Broadband, Senator Stephen Conroy, citing its ‘experience since December.’
However, these arrangements are only as a last resort, Conroy insists and will come into effect “immediately.”
This marks a backtrack of the strategy announced in December which “required new fibre networks built [by NBN Co] after 1 January 2011 for residential and small business purposes to be wholesale-only as well as offering a Layer 2 service on an open-access basis.”
Mike Quigley’s NBN Co is now calling itself a “fibre provider of last resort” for developments of 100 units or more (with planning approval after 1 January this year).
This may be in response to fears voiced by several telcos including Optus and Telstra that NBN Co may turn into a rival broadband retail supplier as opposed to strictly a wholesaler. However, it may do little to allay fears in a fibre optic world with the NBN Co in charge of wholesale supply.
In November last, Senator Conroy said the legislation governing the NBN he announced at the time was designed to ensure “the NBN operated as an open-access, wholesale-only network, to support retail-level competition for Australian consumers”.
Optus CEO Paul O Sullivan previously aired fears the NBN co might become another Telstra monopoly. And the statement also failed to say what instances would constitute “last resort” measures.
Meanwhile the federal government are delegating Telstra responsibility as “provider of last resort” for less than 100 unit developments.
However, this is all pending the roll out of the NBN’s proposed $36bn network, which was recently kicked off in trials runs on mainland Australia in Armidale, NSW but with limited take up.
Telstra is also responsible as provider of last resort for developments approved before 1 January ’11 and still awaiting infrastructure.
But that’s not all. Telstra will also generally provide copper infrastructure, pending the roll out of NBN fibre and can provide fibre and high-quality wireless services as a pre NBN “interim solution” for customers.
This latest twist also comes as Telstra and NBN Co are said to be in final negotiations on their $11bn fibre transfer deal in time for the NBN board meeting to be held on Friday.
The negotiating teams are said to be “down to the last two paragraphs” of their 2000-page document outlining the deal, The Australian reports.
“Those arrangements have now been refined – in light of experience since December – to give developers and other stakeholders greater certainty,” Senator Conroy said today.
“Developers can still use any provider they wish to provide their communications infrastructure. These arrangements relate to the provider of last resort,” Senator Conroy insists.
Developers will also be responsible for installing pit and pipe infrastructure and will need to transfer ownership of the pit and pipe to NBN Co pursuant to an agreement to provide fibre in a new estate.
In developments of less than 100, developers will need to transfer ownership of pit and pipe to Telstra where an agreement with the telco is already in place.
The refined arrangements will come into effect immediately.
They will be supported by the Telecommunications Legislation Amendment (Fibre Deployment) Bill 2011 currently before Parliament.