Optus CEO, Paul O’Sullivan, has put forward a number of controversial proposals for the future management and governance of the National Broadband Network (NBN).
In line with Optus’ increasing concern that the NBN may become “another lumbering monopoly”, O’Sullivan suggested that its management could be put out to tender either on a national basis or even state-by-state to keep it efficient.
He also proposed that an independent oversight body for the NBN be established to ensure that it remained focussed on its customers’ needs – not the needs of the government of the day or NBN Co executives.
O’ Sullivan seems to have forgotten that it is the intention of the federal government to privatise NBN Co once the project is complete and neither of these proposals is likely to appeal to private investors.
But even in the shorter-term the regular, comprehensive turnover of management and operations that O’Sullivan appears to envisage would obviously be highly disruptive to the NBN Co business.
As for tendering management out on a state-by-state basis to “drive greater competition”, it is hard to see on what terms these state NBN Cos would compete against each other, especially given the very different terrains and demographics – and hence cost structures – of the Australian states and territories.
Moreover competition on price, if this is what is envisaged, would surely run counter to the government’s vision of uniform wholesale pricing across the whole of Australia.
It is hard to regard these recent suggestions from Optus as realistic proposals. What they do signal, however, is a growing unease in the telecommunications industry about the impact of the NBN project on current businesses and business models.
As the industry enters this unknown territory, such voices are set to grow louder.
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