The beauty of the NBN is that it will be a wholesale only company and not permitted to sell directly to end customers. That means the likes of Telstra, Optus, TPG, iiNet and a miriad of other ISPs will buy directly from the NBN. Currently they buy the last mile access of copper from Telstra but have to compete with Telstra retail. The allegations from these ISPs is that Telstra retail gets an unfair advantage of selling to themselves.
Any provider such as Optus, Transact, Telstra or companies such as Amcom in WA or Internode in SA that have their own fibre into their customers premises would not be required to pull it out. They would just compete directly with NBN in these sites but would buy off NBN in areas that they do not have their own cable.
The point about NBN being wholesale only is that each ISP buying access at the same price from NBN will have to live or die by their customer service, retail pricing packages and any special content that they can deliver. That is true competition. I would predict that in 10 years there are probably around 10 large ISPs all directly buying from NBN and competing with each other to attract their end customers.
