Communications minister Stephen Conroy has finally unveiled the draft legislation designed to set up a regulatory framework for the National Broadband Network Company.
The draft legislation is actually composed of two parts: one bill establishing the framework for the NBN Companies and another detailing access arrangements.
Conroy said in a statement the legislation specifies ownership, governance and sale arrangements and would ensure the company operates as a “wholesale-only company, offering open and equivalent access”.
“It also firmly establishes the Government’s commitment to sell its stake in the company five years after the NBN is built and operational, subject to market conditions and security considerations.”
The legislation states the NBN Co. could not supply services to another person unless that party is a carrier or service provider. Additionally, the NBN Co. would be prevented from supplying content “such as broadcasting services, online information services or online entertainment services”.
Additionally, the Government stated while the NBN Co. will act as a wholesale-only company, there may be space for the purchase of other telecommunications companies, even if they contain retail segments.
The draft bill also contains the Government’s plan to sell off its stake in the company within five years “from when the network is built and fully operational, subject to market circumstances and security considerations”.
The Government must keep a majority ownership of the company until a declaration is made by the communications minister, which must be made no later than June 30, 2018. This means the Government will sell off its stake by no later than 2023.
Additionally, the legislation states the NBN Co. cannot discriminate between access seekers and must give equivalent access to anyone seeking it. While some parties may want to operate on different terms within the network, the legislation states this activity “aids efficiency, innovation and investment, provided all access seekers have the same opportunity to benefit”.
This efficiency is designed as providing for business options, including “offering volume-based discounts, passing on savings arising from capital investments, discrimination based on risk sharing, discounts in response to competitive circumstances, migration incentives and other efficiencies”.
The draft legislation is also not intended to allow the company to differentiate price or non-price terms in a way that one access seeker could benefit from the arrangement.
“Volume discounts could not be structured in such a way as to limit their availability to a single carrier,” the legislation stated. “The Government’s policy intention is that differentiation in price and/or non-price terms should not confer a systemic advantage on an access seeker.”
Patrick Stafford is a freelance journalist and a former deputy editor of SmartCompany.
