NBN Co may need to prove it isn’t cross-subsidising enterprise play – Telco/ISP

NBN Co is going through calls to show it is not applying cash flow from its controlled actions – supplying household broadband – to subsidise its entry into the business and federal government current market.

The Australian Levels of competition and Purchaser Fee (ACCC) claimed late final thirty day period that additional “reporting and transparency requirements” may possibly be imposed on NBN Co to handle cross-subsidisation issues.

The ACCC pointed out NBN Co “has been progressively increasing into the contestable business market” and that this “expansion is probably to keep on over the coming years.”

“The ACCC considers that NBN Co’s continued expansion into the business services current market may possibly consequence in issues about cross-subsidisation concerning solutions,” it claimed.

“This could in convert generate a have to have for even further transparency on fees and revenues of individual services in upcoming.”

In the earlier, the ACCC claimed it experienced imposed identical transparency necessities on Telstra and Australia Put up to superior comprehend how they – as controlled entities – also operated in “contestable markets”.

The ACCC claimed it continued to view NBN Co’s business and federal government participate in intently for any signals that its existence is “distort[ing] competition”.

It claimed Telstra experienced precisely raised issues with the ACCC over the possible for cross-subsidisation of business and federal government connections.

“Telstra indicated that there is a absence of transparency around NBN Co’s fees and revenues and that cross subsidisation towards contestable locations these types of as business services is a worry,” the ACCC claimed.

“It also highlighted the possible for a additional thorough regulatory accounting framework to ease these issues.”

In Oct final calendar year, NBN Co was sanctioned by the ACCC over its behaviour in the business and federal government current market. 

As iTnews noted final thirty day period, considerable field issues stay that the sanctions have not experienced a material influence on curbing aspects of NBN Co’s strategy to securing business and federal government consumers.

NBN Co proceeds to sustain it has dealt with field issues and that the behaviours that drew regulatory and field attention have been dealt with.

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