ACCC vows strict monitoring of Telstra's role in NBN rollout

Consumer watchdog Australian Competition and Consumer Commission (ACCC) has raised concerns of potential competition issues relating to Telstra’s role in building parts of the National Broadband Network (NBN).

After consulting with broadband retail service providers, the ACCC issued a report Friday outlining its concerns over the Telstra-NBN Co service delivery agreements that may give the telecom firm a “head start” in connecting customers to the NBN services, among others.

The ACCC likewise warned against preferential service activation and/or repair of NBN broadband services for its own customers, and greater insight than Telstra’s competitors into the NBN rollout.

“NBN Co and Telstra have said that one of the benefits of these commercial agreements is that it will facilitate a faster rollout of the NBN, which the ACCC acknowledges, but we also recognise that there are potential competition implications and the effect of these on end users is just as important,” ACCC Chairman Rod Sims said in a statement.

While the NBN Co and Telstra did not make their agreements subject to ACCC approval, the consumer watchdog vowed to monitor the measures set up to mitigate the potential risks to competition. The measures include making the NBN HFC connections available to all service providers simultaneously, compelling the NBN Co to set priorities on activation and repair work that it allocates to Telstra and forcing Telstra’s field workforce to follow non-discrimination rules when attending to end-user premises.

“The ACCC is pleased at the progress made to date in terms of these agreements, but there’s still work to do to address our remaining concerns. We will continue to monitor the relationship between NBN Co and Telstra, and ensure that Telstra’s contracts with NBN Co do not give it an advantage over its competitors in providing superfast broadband services over the NBN,” Sims added.

The NBN Co and Telstra forged agreements on Dec. 21, 2015, and April 11, 2016, for the network planning, design, construction, and construction management services related to the NBN rollout.

The ACCC assured access to information pertaining on the NBN rollout.