NBN Co told to boost points of interconnect by ACCC

16 Dec 2010

NBN Co, the public-private company set up to oversee the construction of Australia’s National Broadband Network (NBN), has been told that it must redesign the project, after the Australian Competition and Consumer Commission (ACCC) rejected its initial proposals to construct just 14 points of interconnect (POI). According to the Business Spectator, with NBN Co having put forward plans for interconnection points only in capital cities, the regulator has informed it that it must increase this number to around 120. Such a decision will likely go part way to appeasing the country’s major telcos, such as Telstra, Optus and AAPT, which had called for there to be between 200 and 400 POIs. The ACCC’s decision, meanwhile, it is understood could have an adverse effect on the NBN project’s commercial return, arguably making it harder for NBN Co to uphold the government’s pledge to offer a single price for access over the new infrastructure across all regions of the country. Following the regulatory ruling NBN Co is now expected to release an amended business model later this month.