ACCC approves $800m NBN, Optus deal

19 Jul 2012, 8:27 pm   -   Source: AAP
(AAP)

(AAP)

The competition regulator has approved a deal between NBN Co and SingTel Optus to migrate customers from the telco's cable network to the NBN.

RELATED

The competition regulator has approved the $800 million deal between NBN Co and Optus to migrate customers from the telco's cable network to the high-speed national broadband network (NBN).

The Australian Competition and Consumer Commission (ACCC) also approved on Thursday the shutting down of parts of Optus's hybrid fibre-coaxial (HFC) network.

The ACCC said the public benefits outweighed any public disadvantage that might result from the arrangements between Australia's second largest telecommunications company and NBN Co.

ACCC chairman Rod Sims said the approval for the deal signed in June 2011 between NBN Co and Optus was "finely balanced".

"The ACCC remains of the view that the public benefits, which are clear and quantifiable, on balance outweigh the likely detriment," Mr Sims said in a statement.

This approval confirms the ACCC's draft decision in May this year.

The main public benefits were avoiding the cost of operating the HFC network to provide a service the NBN would also provide, and lessening the expense of migrating customers from Optus to the NBN.

The ACCC said it had balanced the benefits against the shutting down of a potentially significant fixed line competitor to the NBN in Brisbane, Sydney and Melbourne.

It said the footprint of the Optus HFC network was unlikely to extend beyond the current 1.4 million homes, and it accepted the telco was unlikely to make the investment needed to offer faster products on the HFC network.

Also, the ACCC acknowledged the HFC network would become uneconomical to operate once enough customers were lost to the NBN.

NBN Co chief executive Mike Quigley said the ACCC's decision was another step to allow any telecommunications and internet service provider the opportunity to offer a service to any customer.

"The migration of Optus cable customers supports the NBN's business case and confirms the network as the cornerstone of Australia's digital communications future," Mr Quigley said.

Optus Australia chief officer Paul O'Sullivan said Australian consumers would benefit from the increase in competition among fixed line broadband providers on the NBN.

Mr O'Sullivan said Optus expected the migration of its customers to the NBN would begin in 2014, with the program due to be completed within four years.

Under Labor's $36 billion project, NBN Co is to deliver high-speed optic fibre broadband cable to 93 per cent of homes, schools and business across Australia by 2021.

The ACCC approved a similar deal between NBN Co and Telstra in February.

  • Follow us: 
  • Follow us on Facebook
  • Follow us on Twitter
  • Follow us on Youtube