Bevan et al,<br><br>My reading of this says that the intent appears to be to ensure that:<br><br>- If you're building new infrastructure, it will need to be capable of providing L2 service (for example, you can't buy a wholesale L2 over HFC today);<br>
<br>- If you've re offering a high-speed L2 service, it meets at least base set of requirements (which are to match those of NBN Co, and judging from the technical product descriptions they have released to date, this should not be very hard);<br>
<br>Also, it appears to me that you're free to offer however complex and advanced L2 services *in addition* to the said "base bitstream L2 service" and price them as you wish. Here's your differentiation - differentiate away, as longs as you *also* offer a base service, at a regulated price point. I think this might actually help innovation, rather than hamper it.<br>
<br>Then again, I'm not a lawyer either.<br><br>Regarding Bevan's example with fibre in the basement - if my interpretation is correct, then you're free to add a switch and provide a service, as long as in doing so you're *also* establishing an ability to provide a "new world-compliant" service to a potential wholesale purchaser, wishing to serve somebody (else?) in the same building with a "universal bitstream L2 service" which he then would be able to buy from you at the regulated price.<br>
<br>-- D<br><br><div class="gmail_quote">On Fri, Nov 26, 2010 at 10:33 PM, Bevan Slattery <span dir="ltr"><<a href="mailto:Bevan.Slattery@nextdc.com">Bevan.Slattery@nextdc.com</a>></span> wrote:<br><blockquote class="gmail_quote" style="margin: 0pt 0pt 0pt 0.8ex; border-left: 1px solid rgb(204, 204, 204); padding-left: 1ex;">
On top of that - ACMA/ACCC will be deciding on what products and technical standards everyone will use (loss of innovation) and everyone must offer non-discriminatory pricing even though the competitive infrastructure providers have 'risked' their capital to build these networks. Pricing regime will also be regulated along with any volume discounts. You can go to any provider and get the same vanilla service as determined by the Government and NBN Co.. So with innovation and product differentiation removed, those that have the cheapest cost of equity/debt will win. And it's not hard to guess who that is.<br>
<br>
This is simply economic and technical communism. Welcome to the new world order.<br>
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