In a controversial decision, the Australian Competition And Consumer Commission has given the green stamp to a deal that will see NBN Co pay Optus $800 million to tear up its hybrid fibre-coax (HFC) broadband network – currently one of Australia’s fastest at up to 100Mbps one-way – and transfer its 400,000 customers to the NBN.Following yesterday’s decision, Optus Australia boss Paul Sullivan said the migration of customers to NBN infrastructure would begin in 2014.
Payments from NBN Co would be received progressively as the customers were migrated. The program should be completed – and the 800 million smackers banked – by 2018, Sullivan said.
Dismantling up of the HFC cable network – along with a similar cable network operated by Telstra – has been highly criticised by the Federal Opposition spokesman Malcolm Turnbull.
Turnbull has argued the HFC networks should be retained in areas where they now operate – mainly eastern states capitals – obviating the need for new optical fibre. But NBN supporters say NBN fibre will be superior to HFC, supplying high speeds in both directions.
In any case the Opposition’s ability to stop the process, should it win government next year, now appears difficult to turn back, following acceptance of the contracts involved.
