[AusNOG] News: TPG gets green light to connect fibre to basement in apartments

[Skeeve Stevens]

From:
http://www.smh.com.au/business/the-economy/tpg-gets-green-light-to-connect-fibre-to-basement-in-apartments-20140911-10f9i2.html


TPG forced to separate wholesale and retails divisions.... I didn't think
anything could make me happier than the Apple announcements this week.

#EatItTPG

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TPG Telecom will be allowed by the competition regulator to keep connecting
urban apartments to its high speed broadband network despite NBN Co's claim
it could lead to its business case collapsing and the potential it could
add billions of dollars in expenses to the Budget.


But Communications Minister Malcolm Turnbull will push to force the
functional separation of TPG Telecom's wholesale and retail divisions as
part of a new license arrangement.


TPG Telecom launched its plan to connect 500,000 apartments and businesses
to a fibre-to-the-basement network that provided internet speeds similar to
those offered by the national broadband network.


The company used a clause that allowed networks built before 2011 to be
extended by 1 kilometre to go around laws designed to stop NBN Co from
having any competition.


But NBN Co opposed the measure because it has been ordered to build
broadband services to unprofitable rural and regional areas and must use
lucrative city homes and businesses to help pay for the construction.


If TPG Telecom is allowed to own and operate its network bigger rivals like
Telstra have indicated they would want to be able to compete and experts
have warned this could force billions of dollars in extra expenses onto the
Budget.


"Having carefully examined TPG's plans, the ACCC does not propose to take
further action in relation to TPG's planned fibre to the basement network
rollout to supply residential customers in high-rise buildings in Brisbane,
Sydney, Melbourne, Adelaide and Perth," Australian Competition and Consumer
Commission chair Rod Sims said. "TPG's networks were capable of supplying
superfast carriage services to small business or residential customers at 1
January 2011.


"The ACCC will now conduct a declaration inquiry into whether a superfast
broadband access service like the type to be provided by TPG over its
fibre-to-the-basement networks should be the subject of access regulation."


Mr Turnbull said in a statement he would speed up the process of imposing
restrictions on companies looking to compete against NBN Co in a move that
could make TPG's plan unprofitable.


"The public inquiry process for declaring a category of telecommunications
services can take up to a year, however, which creates a window of
potential instability and industry uncertainty," he said. "The licence
condition would require owners of high-speed networks affected by the
ACCC's declaration process to functionally separate their wholesale
operations, and to provide access to competing service providers on the
same terms as it is provided to their own retail operations.


"This licence condition would remain in place for two years – allowing the
ACCC to undertake its declaration inquiry, the recommendations of the
Vertigan panel to be properly considered, and long-term regulatory
arrangements for the sector to be settled."


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...Skeeve

*Skeeve Stevens - *eintellego Networks Pty Ltd
skeeve at eintellegonetworks.com ; www.eintellegonetworks.com

Phone: 1300 239 038; Cell +61 (0)414 753 383 ; skype://skeeve

facebook.com/eintellegonetworks ;  <http://twitter.com/networkceoau>
linkedin.com/in/skeeve

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