NBN Co to raise prices without Optus deal

NBN Co to raise prices without Optus deal

John C. Tanner  |   January 03, 2012
NBN Co told Australian regulators it will be forced to raise wholesale prices for its national broadband network if an A$800 million deal with Optus to close its cable network is rejected.
In a letter to the Australian Competition and Consumer Commission, NBN Co said that without the deal – under which Optus would shut down its HFC network and transfer its customers to the NBN – NBN Co would not be able to meet its obligations to provide uniform pricing across the country, according to the Australian.
NBN Co said that if Optus is able to offer customers broadband services in Brisbane, Melbourne and Sydney, that could potentially inhibit NBN Co's ability “to cross-subsidize to deliver lower uniform national prices", which would in turn result in NBN Co delaying rollouts in those areas.
The NBN Co letter said: "NBN Co's profitability and viability would be likely affected and NBN Co may need to raise its uniform national wholesale prices. This would mean consumers and (retail service providers) may have to pay higher prices nationally," the Australian reports.
John C. Tanner
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