[AusNOG] Help with NBN questions.

[Bevan Slattery]

Page 465

"Rather than either outright prohibition of competing networks, which
would reduce innovation and remove the discipline of competitive
pressure from NBN Co, or linking rates of return explicitly to those of
NBN Co, the simplest disincentive against cherry-picking would be to
impose a levy on cherry-pickers, payable to the Government, with
proceeds to be directed towards telecommunications subsidy programs".

The report seems to recommend that any carrier that risks their equity
and competes with NBN Co, should therefore expect to pay a higher
tax/levy (or Supertax) than ordinary (compliant) telcos.  A Telco
"supertax" as it were.

[b]





> -----Original Message-----
> From: ausnog-bounces at lists.ausnog.net 
> [mailto:ausnog-bounces at lists.ausnog.net] On Behalf Of Bevan Slattery
> Sent: Wednesday, 12 May 2010 3:18 PM
> To: Karl Kloppenborg; ausnog at ausnog.net
> Subject: Re: [AusNOG] Help with NBN questions.
> 
> 
> > 2) someone told me that anyone who competes with the NBN will face 
> > prosecution? does this mean anyone who builds a fibre 
> network (I just 
> > plainly don't know what to take with that)
> 
> Kind of.  The report suggests that if you 'cherry pick' and 
> rollout out services that compete within limited areas, then 
> they recommended to the government they should introduce a levy.
> 
> So, if Telstra were still under Government control and say a 
> fibre company like PIPE Networks decided there was a business 
> case to deliver competitive backhaul to say 200 exchanges, 
> the reports suggests the Government should levy said 
> commercial operator out of those markets.
> 
> So in essence, they are recommending that if the socialist 
> investment fails to be competitive in a market area (say 
> backhaul or FttP in areas already service by NBN 2.0), then 
> we should deem that to be 'cherry picking' and in order to 
> protect said socialist investment, the Government should have 
> the ability to introduce a levy or 'supertax' on any 
> telecommunications investment that competes with it, to make 
> sure that said competitive telco investment no longer makes 
> sense and the monopoly will retain it's position and be able 
> to continue to excert unparalleled market and legislative 
> power and if deemed appopriate, obtain monopoly rents from 
> Australian citizens and businesses.
> 
> Yep - I think I captured it succinctly.
> 
> [b]
> _______________________________________________
> AusNOG mailing list
> AusNOG at lists.ausnog.net
> http://lists.ausnog.net/mailman/listinfo/ausnog
>