More telcos sign wholesale NBN agreement but expert warns there’s no rush

Telcos Primus and iiNet have joined nearly 20 other companies in signing up to the National Broadband Network's wholesale agreement, after the network sent out a revised agreement to businesses with amended indemnity clauses.

But while anticipation is growing for the industry's largest players, Telstra and Optus, to sign the agreement, Telsyte director of research consulting Chris Coughlan says there isn't too much of a rush.

"This issue will really come into play once Telstra gets its structural separation undertaking. As soon as that happens, there is an obligation to disconnect copper services," he says.

Both iiNet and Primus announced their move to sign the agreement yesterday, with iiNet chief regulatory officer Steve Dalby saying that after negotiations, final changes resolved some key points, including sharing of risk and liability.

"We welcome NBN Co.'s changes to the original WBA as a sensible and positive approach. Our product development, testing and marketing will continue uninterrupted, which is a very positive outcome for NBN Co., iiNet and, most importantly, our new NBN customers."

Primus also said in a statement that it will continue to work with the NBN in delivering high quality services.

But Coughlan says a lot of telcos are waiting for Telstra to sign up. "This issue comes to fruition when the SSU is approved."

"After that, there is an 18 month window for Telstra as far as the disconnection of customers on copper networks goes. There is an interim agreement that starts then."

"At the moment, there's no rush. But as soon as that SSU occurs, that phase begins of getting people disconnected and onto other services."

Coughlan says the other part of the problem is that unlike a traditional wholesale agreement, each telco must agree.

"They have to negotiate with the entire industry, as opposed to a traditional relationship where there is flexibility. That adds time as well."

Related Items :
busy
 

Steve Jobs - Free eBookFREE eBOOK: Steve Jobs - Lessons from a legend

In this eBook, we look at the career of Steve Jobs and showcase a number of different lessons you can gain from following his example

Register for the SmartCompany Newsletter and receive 'Steve Jobs - Lessons from a legend'.

Please enter a valid email address. For example fred@domain.com .

By submitting your email you are agreeing to our Terms & Conditions.

Free Daily Newsletter
SmartCompany Newsletter Please enter a valid email address. For example fred@domain.com .
Follow us:

By submitting your email you are agreeing to our Terms & Conditions.

Sponsored Links

Business Resources

Our Partners

 

Private Media Publications

Crikey

loading...

Crikey Blogs

loading...

StartupSmart

loading...

Property Observer

loading...

Leading Company

loading...
Smartco

DIRECT LINKS

TOPICS

OUR PARTNERS

NETWORK PARTNERS

 

SmartCompany.com.au is Australia's leading website for SMEs featuring business news, business information and business blogs. SmartCompany's archive of news, feature articles, entrepreneur interviews and business webinars cover topics such as advertising and marketing, buying or selling a business, starting a business, growing a business, franchising, SEO, superannuation and tax.
SmartCompany is a Private Media website

Online Solution by Valegro

Download SmartCompany eBooks: 10 quick sales and marketing wins | Steve Jobs: Lessons from a legend50 tips from Australia's top SME entrepreneurs

Popular on Partner sites: Small business awards | Property Investment Tips | How to Write a Business Plan | Technology in Business | Business MentorsBusiness to Business | Small Business | How to Write a Marketing Plan | Federal Budget 2012 | Federal Budget 2012 webinar25 start up ideas