Competition boss Rod Sims says the regulator will rule on the legality of TPG Telecom’s controversial plan to roll out a high-speed broadband network in competition with NBN Co within one month.
NBN Co, which is the company building the $41 billion national broadband network, has said TPG’s plan to connect 500,000 homes and businesses with fibre to the basement internet services could help destroy its business case.
If the Australian Competition and Consumer Commission (ACCC) rejects NBN Co’s bid to ban the plan it will be a blow for the company and the Federal Government.
Allowing private companies to cherry-pick the most lucrative customers could stop NBN Co from being profitable and add billions of dollars in expenses onto the federal government’s budget.
ACCC chairman Mr Sims said the regulator now had all the information it needed to reach a decision within one month.
“We’re getting very close to settling an assessment of that,” he said. “It’s weeks and not more than that.
“This is a very serious issue in need of detailed legal assessment.”
He also said the ACCC’s decision would have no impact of whether or not TPG Telecom would receive compensation for the premises it had connected to its network thus far.
“I don’t want to indicate where we’re going on this but if they’ve done something legal, then it’s fine and if they’ve done something that’s not legal, then that’s not fine and there’s no question of compensation,” he said.
The NBN is protected from competitors by legislation introduced by the previous Labor government. Any fibre-optic network that served non-corporate customers must either be opened as a wholesale platform with the same prices and terms as the NBN or suffer a speed limit.
But TPG is relying on a clause that allows networks built before January 2011 to be extended by 1 kilometre or less to reach buildings, where it then switches to the existing copper wiring for internet services - a step NBN Co believes is against the law.
If NBN Co’s ACCC appeal fails it will be forced to depend on the Federal Government closing down the legislative clause and restrict companies like TPG from building rival networks.
Communications Minister Malcolm Turnbull is awaiting the findings of a review by the government-appointed Vertigan Panel before making a decision. The panel is running late and its findings are due for public release in August.
The ACCC’s Mr Sims previously said the regulator was almost forced to use its powers to demand key documents from TPG Telecom after the company took too long to voluntarily supply the information.
