Page 127 - SAMENA Trends - October 2019

REGULATORY & POLICY UPDATES SAMENA TRENDS

the NBN undertaking a separate analysis which had place extensive compliance arrangements, including
indicated that such interference is possible, the report an annual independent audit of its compliance with its
said. Fletcher has written to the Australian Competition non-discrimination obligations. Commenting, ACCC
and Consumer Commission (ACCC) seeking advice chairman Rod Sims said: ‘The ACCC has concluded that
on allocation limits ahead of the auction, which is NBN Co failed to comply with its non-discrimination
scheduled for early 2021. The auction will be the first obligations on a number of fronts … These legal
opportunity Australian telcos will be able to access obligations were enacted to ensure that NBN Co does
mmWave spectrum. At the end of last year, the ACMA not distort competition in the market for retail NBN
auctioned off 125 MHz of spectrum in the 3.6GHz services, such as by favoring larger RSPs.’ He added:
band. In total, Telstra paid AU$386,008,400 for 143 ‘In this case, the ACCC has not identified evidence that
lots; the TPG-Vodafone Australia joint venture Mobile the conduct resulted in specific harm or competitive
JV paid the next most, at AU$263,283,800 for 131 lots; detriment before it came to light … Despite this, the
Optus paid AU$185,069,100 for 47 lots; and Dense Air ACCC is satisfied that NBN Co’s conduct amounted to
Australia paid AU$18,492,000 for 29 lots. The ACMA a serious breach of its non-discrimination obligations.
made AU$853 million from the spectrum auction, the The undertaking we have accepted from NBN Co is
equivalent of around AU$0.29/MHz/pop. In July, a intended to ensure that all access seekers can compete
study of 43 devices conducted by Enex for the ACMA on an equal footing going forward.’
showed how 5 GHz WIFi outperformed 2.4GHz in long- (October 10, 2019) telegeography.com
range testing, negating a major reason to continue
using the slower 2.4GHz band. “The 2.4GHz band is A number of measures have been proposed by the
often promoted as a better choice for longer range Australian Competition and Consumer Commission
communications,” Enex said in its report. “However, (ACCC) aimed at improving NBN Co’s wholesale service
Enex’s findings did not support this. Operating in the levels, including a reworked rebate structure for missed
5GHz band appears to be the best choice for consumers appointments, late connections and unresolved faults.
under all circumstances.” “The 5GHz band also has the In a draft decision, the regulator has put forward new
benefit of more recent technology developments which regulated wholesale terms for the service standards
includes features such as directional beamforming and NBN Co provides to retail service providers (RSPs),
MU/MIMO (with up to eight antennas and multiuser noting that the proposals are in response to concerns
sub-channels).” (October 27, 2019) zdnet.com raised by stakeholders during its National Broadband
Network (NBN) wholesale service standards inquiry.
NBN Co, the company overseeing the construction and Among the proposed changes from existing wholesale
management of Australia’s National Broadband Network arrangements are: a change to the structure of rebates
(NBN), has been formally warned for discriminating for late connections and fault repairs to apply on a daily
between retail service providers (RSPs) with relation to basis, rather than as a one-off payment, and an increase
the supply of upgraded NBN infrastructure to business in the size of these rebates; an increase in the size of
customers. In a press release regarding the matter, the rebates for missed appointments by NBN technicians,
Australian Competition and Consumer Commission from AUD25 (USD17) to AUD75, with a requirement
(ACCC) said that having issued the warning, it had also that RSPs pass this rebate on to consumers; the
accepted a court-enforceable undertaking from NBN introduction of monthly AUD20 rebates for fixed
Co, which includes a commitment by the company to wireless services in congested cells or connected to
take measures to ensure such conduct is not repeated. congested backhaul links, as well as rebates for fixed
According to the ACCC, it had determined that from at line services that fail to meet certain minimum speed
least January 2018 NBN Co offered materially different objectives; and the implementation of enhanced
commercial terms to different RSPs as it upgraded NBN reporting, measurement and automation requirements
infrastructure to support high speed, business-grade to promote better communication, transparency and
services. Further, the regulator also claimed that it had coordination. With the ACCC having invited feedback
provided one RSP with indicative pricing information on its proposals by a deadline of 1 November 2019,
for its new Enterprise Ethernet service months before chairman Rod Sims said of the matter: ‘The new
it gave the same information to other RSPs. Following arrangements are designed to give NBN Co more
the ACCC’s investigation, NBN Co was said to have incentives to lift its service standards to RSPs, which
admitted that it did not have appropriate processes in should, in turn, improve service to NBN consumers by
place to ensure it was complying with its transparency reducing instances of missed appointments, delayed
and non-discrimination obligations. As part of the connections and unresolved faults … We have heard
court-enforceable undertaking, the firm has reportedly long-standing concerns from consumers about how
committed to offering consistent contract terms to frustrating, inconvenient and costly these issues can
RSPs for the supply of upgraded NBN infrastructure. It be. We need to see more action from NBN Co and RSPs,
has also committed to providing the same information especially now that the NBN rollout is entering its final
to its customers at the same time, while it will put in stages.’ (October 1, 2019) telegeography.com

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