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Migration of Optus subscribers to NBN approved
20 July 2012
Regulator clears decommissioning plan for parts of network
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NBN
Singtel Optus
Australia
regulation
Mike Quigley
The agreement between
Australian data network provider, National Broadband Network (NBN) and the second
largest telecomns company in the country, SingTel Optus for the migration of Optus’ hybrid fibre-coax
network (HFC) subscribers to the NBN has been approved by the Australian
Competition and Consumer Commission (ACCC). The agreement was announced in June
2011.
The ACCC also approved
the decommissioning of parts of Optus’ HFC network, the trade authority said in
a release. The ACCC had earlier in May issued a draft decision, which has now
been confirmed by the approval.
ACCC, chairman, Rod
Sims said: “As outlined by the ACCC at the time of the draft determination,
this decision is finely balanced. The ACCC remains of the view that the public
benefits, which are clear and quantifiable, on balance outweigh the likely
detriment.”
NBN CEO Mike Quigley,
said: “The NBN is expected to facilitate further competition in the retail
market, and we are already seeing positive signs of this with over 40 telephone
and internet retail service providers signed up as customers of NBN Co.”
The HFC Agreement will
avoid the operating cost of the Optus HFC network to offer a service the NBN is
also able to provide. It will also reduce the migration cost of Optus
subscribers who are on the HFC to the NBN.
The ACCC said that competition
between HFC and the NBN would be unlikely to persist in the long term if it did
not grant authorisation, due to the pervasive and enduring economies of scale
associated with the NBN. GTB