If there was ever any way the outrageously expensive National Broadband Network could have paid for itself, that prospect ended on Friday:
NBN Co has been forced to back down on its plans to restrain Telstra from promoting its wireless internet services as a substitute for the $36 billion fibre network for two decades after pressure from the competition watchdog.
The Weekend Australian can reveal that the $11bn deal between Telstra, the government and NBN Co for Telstra to decommission its copper network and shift its customers to the new service will be revised following concerns by the Australian Competition & Consumer Commission that the curbs on Telstra’s marketing of its wireless services could hinder competition for wireless voice and broadband services.
Instead of Telstra agreeing not to promote wireless as a direct substitute for fibre, it is understood Telstra will effectively pledge that it would not engage in misleading and deceptive conduct about the NBN in its marketing — which is prohibited anyway under Australia’s consumer law.
The only way the NBN could have been competitive was to shut down competing technologies.
The ACCC’s decision is a good one for Australian consumers. The NBN will no longer be allowed to stop other companies implementing superior internet delivery systems.
But Australian tax payers will still be stuck with a bill of $6,000 for every household to pay the cost of what should have been clear from the beginning was a bloated, inefficient and already outdated system.
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