iNet in talks to resell TPG's fibre to the basement
Summary: iiNet is in talks to resell services on the network of its closest rival TPG.
By Josh Taylor | October 7, 2014 -- 21:25 GMT (08:25 AEST)
iiNet CEO David Buckingham has confirmed that the company is in talks with TPG to resell its fibre-to-the-basement product.
TPG began activating services for customers on its fibre-to-the-basement network in Australian capital cities last month, after getting the tick of approval from the Australian Competition and Consumer Commission (ACCC) that the network is not in breach of the so-called anti-cherry picking provisions added into the Telecommunications Act to prevent companies from undermining the National Broadband Network's (NBN) cross-subsidy model.
At the time that the ACCC allowed TPG to directly compete with NBN Co, Communications Minister Malcolm Turnbull moved quickly to announce that the government would look to force companies like TPG to wholesale their fibre-to-the-basement services for other companies to be able to resell. ZDNet understands that TPG has been open to the idea of reselling its services, and yesterday, Buckingham confirmed that iiNet is in talks with TPG.
"We've always been very happy to take supply from whoever has got the best service and price available to us," he said at the CommsDay Congress in Melbourne yesterday.
"One of my esteemed colleagues from iiNet, sat opposite me there, is talking to TPG [about] whether they'd consider that right now," he said.
His comments follow those of Telstra CEO David Thodey, who also recently indicated that Telstra would be open to reselling TPG's services.
Buckingham said iiNet is also open to the possibility of building more of its own networks, in addition to the fibre-to-the-node and hybrid fibre-coaxial (HFC) networks the company already operates.
"We build where we feel we need to; where we can't buy or rent from somebody else. Our focus is service."
As the NBN moves to a multi-technology mix model that incorporates HFC and fibre to the node, Buckingham said that iiNet sticks by the notion that the bigger, faster, and wider the pipes available, the better for the country, but he said that iiNet needs to be pragmatic in light of the new government policy.
"I'm in the mindset now that after six years of being involved in this battle, I'll take whatever comes," he said, taking aim at the government's response to the Vertigan cost-benefit analysis and regulatory reviews.
"It's frustrating to see another year of the whole project on hold for review, where the primary recipient of the outcome of that review turns around and says, 'I'll wait a few more years before I'll deal with that'."
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