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

[Paul Jones]

And we all know how well functional separation works out, even for a “quality“ carrier like Telstra!
So long as TPG are reasonable about what they charge for access I guess it could work. Hopefully it doesn’t end up being like Telstra Velocity estates.

Cheers,
Paul.

From: AusNOG [mailto:ausnog-bounces at lists.ausnog.net] On Behalf Of Skeeve Stevens
Sent: Thursday, 11 September 2014 10:01 AM
To: ausnog at ausnog.net
Subject: [AusNOG] News: TPG gets green light to connect fibre to basement in apartments

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
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