ISP claims higher broadband costs under Telstra's NBN plan

Internode claims consumers may end up paying higher prices for broadband services under Telstra's NBN plan.

Telstra's recent submission for the National Broadband Network (NBN) has provoked a mix of concerns from other non-bidders in the tender process about the regulatory framework of the new network.

Australian internet service provider (ISP) Internode has joined the chorus of concern. Internode claims consumers may end up paying higher prices for broadband services they already obtain should the Federal Government consider Telstra's regulatory framework. The telco believes its framework needed to meet the vision of Senator Stephen Conroy, the minister for broadband, of an open, competitive high-speed national broadband network.

Internode's managing director, Simon Hackett, expressed concern when Telstra asked the Federal Government not to force the NBN operator to "accommodate old and new technologies, which are not compatible".

Hackett said Telstra's "incompatibility" claim was not based on technical data. "The truth is that there is no technical barrier to coexistence", Hackett said. "With appropriate software configuration settings, ADSL2+ can coexist in the new node-based VDSL2 environment. To claim they are not compatible is a Telstra excuse that is driven by its target profit level rather than consumer outcomes."

Experts in Netherlands and Australia back Hackett's view that an ADSL2+ and VDSL2 hybrid model can work.

Dr Paul Brooks from telecommunications strategy company Layer10 concluded in a 2007 study that "there was no need to cut the copper" to protect VDSL2 services at a node from non-VDSL2 services at the exchange.

In his own submission to the Department of Broadband, Communications and the Digital Economy, NBN Regulatory tender Hackett states that the ADSL2+ services from many ISPs should continue to be available to consumers in parallel to an NBN deployment, for a minimum transition period of at least five years: "It's OK if someone wants to pay more for a higher speed than they can obtain now, but its not OK if the NBN just drives up the costs for services at the speeds that are already available."

In Hackett's view, a hybrid model would preserve competitive tension and provide consumers with insurance against a variety of possible NBN challenges and failures, including escalation in price and reduction in available technical services.

"The hybrid approach is the most pro-consumer approach to building the NBN", said Hackett. "This isn't about handing anyone a monopoly on a plate: it is about maximising consumer outcomes and choice as a priority."

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.
Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Julie Shingleton

PC World
Show Comments

Brand Post

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Aysha Strobbe

Microsoft Office 365/HP Spectre x360

Microsoft Office continues to make a student’s life that little bit easier by offering reliable, easy to use, time-saving functionality, while continuing to develop new features that further enhance what is already a formidable collection of applications

Michael Hargreaves

Microsoft Office 365/Dell XPS 15 2-in-1

I’d recommend a Dell XPS 15 2-in-1 and the new Windows 10 to anyone who needs to get serious work done (before you kick back on your couch with your favourite Netflix show.)

Maryellen Rose George

Brother PT-P750W

It’s useful for office tasks as well as pragmatic labelling of equipment and storage – just don’t get too excited and label everything in sight!

Cathy Giles

Brother MFC-L8900CDW

The Brother MFC-L8900CDW is an absolute stand out. I struggle to fault it.

Luke Hill

MSI GT75 TITAN

I need power and lots of it. As a Front End Web developer anything less just won’t cut it which is why the MSI GT75 is an outstanding laptop for me. It’s a sleek and futuristic looking, high quality, beast that has a touch of sci-fi flare about it.

Emily Tyson

MSI GE63 Raider

If you’re looking to invest in your next work horse laptop for work or home use, you can’t go wrong with the MSI GE63.

Featured Content

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?