The regulator argues that the deal would avoid costs of operating the Optus HFC network to provide a service the NBN is also able to provide. Furthermore, the deal would deliver a lower cost HFC subscriber migration to the NBN. The ACCC acknowledges that the agreement removes a potentially significant fixed-line competitor to the NBN in Brisbane, Sydney and Melbourne.
Competitive pressure from the Optus HFC network may have resulted in positive outcomes notably prompting NBN Co to improve its performance. However, a number of factors reduce the detriments that which would normally be expected, the regulator says. These factors include the fact that the footprint of Optus' HFC network is unlikely to be extended beyond the current 1.4 million homes. The ACCC also accepts that Optus is unlikely to undertake the large investment required to allow the company to offer significantly faster products on the HFC network than those currently available. The Optus HFC network will, therefore, only provide a close substitute to the NBN for customers seeking broadband services that will be at the lower end of the range of services that the NBN will support.
Optus welcomed the draft approval and said the agreement will enable it to gradually decommission its HFC network and move customers over to the NBN from 2014 once the network is ready for service in those areas.
