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Australian government updates the policy for telecommunications in new developments

The new policy establishes obligations for the NBN and other infrastructure providers, which have to provide wholesale services where they are the Statutory Infrastructure Provider.

Background: The Australian Government set out the current policy for Telecommunications Infrastructure in New Developments (TIND) in 2015. The policy aimed to provide new developments with ready access to modern telecoms services, and to support competition in the market for the provision of such infrastructure. The policy is now being reviewed, due to the impending completion of the National Broadband Network (NBN), the evolution of alternative providers’ operations, Telstra’s reduced role in new developments, and the forthcoming passage of new statutory infrastructure provider (SIP) legislation.

Fixed-line remains the default: The amendment keeps developers responsible for the arrangement of telecoms infrastructure in their own developments, including its funding. Developers can approach their operator of choice, although the NBN will be the default SIP for most of the country. When a developer contracts a carrier to service its development, the carrier will become the SIP for that development. SIPs are required to provide wholesale services. Fixed-line networks should be installed as the default; however, where this is not reasonable, fixed-wireless access (FWA) or satellite should be used. The policy explicitly leaves overbuilding to the market, noting that commercial forces will decide whether a given area is most efficiently served by one fixed-line network, rather than the Government.

NBN charges to be treated as price caps: The amendment proposes that the NBN’s developer and end-user charges become the reference price caps, which means that the NBN will be able to charge less where it needs to respond to competition. Where other carriers have end-user charges, this will trigger a transparency obligation to publish them. The total end-user charge for broadband and television will never have to exceed AUD500 (USD319.4). The NBN will be free to install competing infrastructure on a commercial basis, but must keep records of its commercial decision making. Access to backhaul and to the NBN’s business-to-business interface should also be pursued on a commercial basis. A consultation on the proposal is running until 8 June 2020.