The proposed schemes by Regulators threats NBN FTTN Upgrades

High chances for paying up for the defaults and slow service

The proposal made by the concerned authorities has taken back the NBN Co. The company claims the FTTN network service and copper network are under threat. The situation raised after the Australian Competition and Consumer Commissions (ACCC’s) planned to impose a much higher standard on the NBN Co and to levy penalty to the company when the criteria do not meet.

The regime forecasted by the regulators includes;

  • For late or delayed connections of the network- $13.50 per business day- capped at $270.
  • For slow or fault fixing – $30 per day – capped at $1150.
  • For missing appointments, it starts from $25- capped at $75.

So far, no counter-arguments made by NBN has been made public. However, last week, on Friday, the government laid out extensive refutation.

The Wireless communication giant is all set to negotiate the service standards, with the RSPs (Retail Service Provider) with a complete new broadband agreement process.

Though the network builder is much more aware of the negotiation front, it still holds a slight clinch on the ACCC terms.

According to the spokesperson of NBN, “highly impactful initiatives currently being considered, subject to funding availability, that could potentially be canceled, delayed or reduced in scale to accommodate the investments NBN Co will need to make to comply with the [ACCC], and to pay applicable rebates, include … upgrading FTTN services to FTTC … [and] remediation and rehabilitation of the copper network”.

No commitment is made by the network to upgrade the FTTN channel, but to avoid the financial loss in the downstream, it has started testing every technical feasibility.

NBN diligently spoke on how the regulatory hindrance would add a burden to them on the WBA4 negotiation. They said;

“Any … intervention would be pre-emptive and hinder the development of industry-led commercial solutions at a critical juncture in the maturation of the structurally separated industry.”

“NBN Co needs to be given the opportunity: (a) to offer specific commitments to access seekers in exchange for specific commitments from those access seekers to progress their own customer experience initiatives, so that both parties align their efforts and improve service delivery in a way that has an appreciable impact for end-user customers, and (b) to deliver customer experience initiatives that are informed by extensive market research and experience of operating a broadband access network.”

“The ACCC rules, if made, will inevitably shift the focus of WBA4 negotiations to the terms of the rules, which will form the baseline commitments that NBN Co must make without any corresponding commitments from access seekers.”