NBN Co is keeping close tabs on the ongoing TPG-Telstra saga, in part because it’s adding fuel to a long-running beef the company has with regulators over the substitutability of cellular fixed wireless for NBN connections.
In a parliamentary submission [pdf], dated December 9, NBN Co cited commentary by the ACCC that TPG could use Telstra network infrastructure to supply “a ‘fallback’ or ‘failover’ option for its NBN fixed line services in the regional coverage zone”.
It said other language used by parties involved in the proposed network sharing deal suggested the substitutability of cellular and NBN fixed line services.
NBN Co has a long-running campaign to convince the ACCC, in particular, that the substitutability threat is so significant that action should be taken to constrain the competitive threat.
That action would come in the form of forcing cellular operators to pay the regional broadband levy (RBS), colloquially known as the ‘broadband tax’.
The RBS money is put towards the upkeep of NBN Co’s fixed wireless and satellite networks, however it also makes services supplied over NBN-like infrastructure more expensive.
In mid-2021, the ACCC declined to declare cellular fixed wireless as an NBN-like service, and therefore bring it under the RBS.
Since then, NBN Co has sought to maintain the pressure on the ACCC to change its mind, warning of a six-figure customer exodus to cellular services, and publishing detail scoping the ongoing competitive threat.
Now, NBN Co is hoping that a senate committee seeking to promote multi-carrier mobile infrastructure in regional Australia will take an interest in the issue of substitutability as well.
“NBN Co suggests the committee consider whether it would also be appropriate for 4G/5G fixed wireless network operators that provide ‘substitutable’ services to premises to be subject to the RBS levy and, if so, to make recommendations to the ACCC to assess this option in their next review,” the network operator said.
“Given the purpose of the RBS levy is to fund the net costs of non-commercial NBN fixed wireless and satellite broadband services in regional Australia, there will be a role for the government to assess the churn of services from fixed-line network operators to fixed wireless operators and mobile network operators (MNOs); and to assess the impact this shift will have on both the RBS funding base itself and on the ability for fixed wireless operators such as NBN Co to compete with future multi-carrier MNO arrangements.”
