The Australian Competition and Consumer Commission is opening up “superfast” broadband networks to greater competition, allowing retail service providers access to non-NBN network services.

The ACCC decision, announced on Friday, to regulate access to wholesale superfast networks by declaring a five-year “superfast broadband access service” (SBAS), allows it to set the pricing and other conditions imposed on operators wanting access to the networks.

The announcement of the SBAS declaration of service has now triggered a public inquiry into the price and non-price terms of access that should apply to the SBAS, with the ACCC setting interim price and non-price terms and conditions to apply for the next 12 months while it completes the inquiry.

ACCC chairman Rod Sims says that by setting interim terms and conditions the commission has taken into account industry concerns about the regulatory burden for smaller providers, and exempted superfast broadband operators supplying less than 20,000 customers.

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The TransACT/iiNet VDSL network and the HFC network in regional Victoria — all owned by TPGwill also be exempt in the interim, to allow sufficient time for these networks to be reconfigured to supply an SBAS product.

“During the inquiry the ACCC will look closely at the likely compliance costs for these operators, being mindful of the price benefits competition can bring to consumers,” Sims says.

The SBAS declaration allows retailers to access non-NBN network services with a downstream data rate normally more than 25 Mbps, including the fibre-to-the-basement (FttB) network operated by TPG subsidiary AAPT, and Telstra’s fibre networks in South Brisbane and Velocity estates.

Sims says the declaration is an acknowledgment that all superfast broadband networks, “regardless of their size display natural monopoly characteristics. What this access declaration does is provide retailers with the opportunity to enter superfast broadband markets, and in turn increase competition”.

“This decision will also help to simplify and clarify the existing regulations that apply to superfast broadband services, allowing all retail providers to compete on their relative merits, regardless of the technology used, when the network was constructed, or who operates it.

“Importantly, this will benefit consumers in the long term because it means greater competition between retail providers, and more choice, can now occur.”

The SBAS applies to all Layer 2 superfast broadband services except those supplied on the NBN, HFC networks contracted to be transferred to NBN Co, networks already subject to the LBAS or Domestic Transmission Capacity (DTCS) declarations and those that exclusively supply business, charity and public body end-users in central business district (CBD) areas of capital cities - where the ACCC says competition appears to be effective.

The interim prices (see below) for the SBAS are for 12 months while the ACCC conducts its inquiry:

Price terms for SBAS services – Telstra FAB services and other (non-FAB) SBAS services

Services Port (end-user access) charge Aggregation charge

Charge per port per month Rate per Mbps per month

Telstra FAB Services – Zone 1 $22.14 $29.27