The Federal Government has indicate the National Broadband Network (NBN) tender winner will be announced soon. Importantly we already know who the winner will not be: Telstra. It may be argued that the fact that Telstra is now out of the tender will be good for future competition in the sector. However, a close inspection of the current regulatory framework will reduce that expectation.
Of more interest to people in the indusry is the legislative framework that will accompany the decision announcement. Will Senator Conroy be able to convince his colleagues to provide a truly competitive framework for the NBN such that the telecommunications sector can move forward with fair and reasonable competition for all.
One thing that must not occur is for Senator Conroy to limit competion to the NBN. This would be anti-productive. At a time when Telstra will be spurred on to improve its offerings and to effectively compete with the publically funded NBN, the country does not need legislation that would give the NBN provider any form of protection or monopoly.
Is this a risk that could reduce the effectiveness of the public monies being put into the NBN? No it is not. The reason for the NBN has always been to provide more competition and better services to the Australian public. The greatest need in Australia today is a second national backhaul network and closely following this is the need to reduce Telstra's monopoly over wholesale offerings.
The NBN must not occur if it is to put Telstra into a position whereby Telstra cannot compete fairly. If the Telstra board decides to invest in systems and services in competition with the NBN then the winners will be the Australian public. The recent announcement by Telstra to upgrade their national cable network is a sign of positive outcomes related to the NBN occuring.
The question we all need answered is can the government get it right and provide a level playing field for everyone in the telecommunications sector? We shall know the answer to this question soon.