more government legislation?

Now that the number 1 & 2 are in revolt, will we see the small fish follow??? Also, will Senator Conroy dream up some more threatening Legislation?? This time attacking OPTUS!! I would like to see that...


"Optus sides with Telstra in national broadband controversy Mitchell Bingemann From: The Australian April 08, 2010

OPTUS has joined Telstra in baulking at a deal with the government over the national broadband network, with the No 2 carrier saying drastic changes were needed to draft legislation before it will sign up to the $43 billion project.

In its submission to the senate select committee on the national broadband network, Optus warned that the project could be sunk unless clauses that allowed the government-owned network to compete in retail markets -- specifically in the supply of telco services to government agencies -- were removed from the draft legislation.

Optus, until now, has been happy to negotiate with the government about its involvement in the NBN and had even gone so far as to consider selling its east-coast hybrid fibre-coaxial (HFC) cable network into the project.

But its submission demonstrates a hardening of attitude and a rare show of unity between Optus and its arch-rival Telstra, which last month wrote to shareholders with similar concerns about the NBN becoming a government-funded retailer. The retail clause has been designed to bolster the financial credentials of the NBN -- at the expense of retail companies such as Telstra, Optus and AAPT -- but it goes against the grain of the NBN's core mandate: to be a wholesale-only service, providing open and equal access to all retail telecommunications companies.

Optus argues that the regulatory uncertainties and a raft of new discretionary powers for the Communications Minister outlined in the bill suggest otherwise. "As it stands, the draft legislation provides wide scope for NBN Co to play in the retail market, either at the complete discretion of the minister or by acquiring businesses in its own right," Optus director of government and corporate affairs Maha Krishnapillai said.

"Despite assurances to the contrary, the legislation also allows the opportunity for Telstra to gain a privileged position on the NBN (for example access to better pricing or conditions), jeopardising the promise of improved retail competition."

Communications Minister Stephen Conroy has previously denied that the discretionary powers would turn the NBN Co into a retailer offering value-added services to the lucrative government sector, leading some analysts to instead conclude that the clause was deliberately included to increase the threat to Telstra's commercial operations and encourage it to co-operate with the new fibre network.

Optus says the government's failure to heed its warnings and amend the legislation is likely to see other telco access seekers bow out of participation in the NBN.

"If these issues are not addressed then it is highly questionable as to whether the government's vision for a viable and successful NBN at the heart of a reformed and competitive fixed-line telecommunications market will be realised," Optus says in its submission.

"To put this into sharper perspective, access seekers are unlikely to be willing to commit to the NBN or provide confidential information to NBN Co while doubts remain about the future of the NBN Co as a prospective retail competitor."

The warning is the first sign that Optus's smiling and supportive veneer for the broadband project is starting to crack, as frustration from within political and private spheres with the government's failure to provide clarity on key aspects of the NBN -- such as a thorough cost-benefit analysis and ways to attract private sector investment to the project -- continue to mount. Optus also argued the equivalence measures set out in the draft legislation were no better than the ones in place today, which had allowed Telstra to dominate profits and margins in the telco sector.

"As it stands, Telstra could potentially negotiate special prices in return for an agreement to migrate its 8 million customers to the NBN -- it is unlikely that any other carrier would qualify to receive those same terms," Optus says.

In its submission, Optus outlined 18 wholesale changes it believed should be made before the draft legislation was submitted in its final form, including restricting the NBN Co to supplying services to carriers only. It also proposed the introduction of an equity cap that would prevent retail telecommunications providers taking a stake of more than 20 per cent in NBN Co.

The government welcomed Optus's input and said it would be taken into consideration".