The Australian Competition and Consumer Commission has issued a draft determination to authorize a subscription migration agreement between NBN and SingTel Optus. The agreement makes the migration of Optus’ HFC subscribers to the NBN cheaper. The agreement also decommissions parts of Optus’ HFC network, thus avoiding the parts’ costs of operation because NBN provides the same service.
Although the agreement removes a competitor to NBN in Brisbane, Sydney and Melbourne, the ACCC determined that public benefit outweighed the competitive pressure that Optus HFC would have been able to supply. Moreover, the ACCC considered that Optus HFC subscribers will eventually migrate to NBN because NBN is able to offer significantly faster products than Optus HFC will ever be able to supply.
Full content: ACCC Press Release
Related content: Network Neutrality: A Competition Angle (Frank Maier-Rigaud, OECD)
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