More telcos sign wholesale NBN agreement but expert warns there’s no rush

Telcos Primus and iiNet have joined nearly 20 other companies in signing up to the National Broadband Network’s wholesale agreement, after the network sent out a revised agreement to businesses with amended indemnity clauses.

But while anticipation is growing for the industry’s largest players, Telstra and Optus, to sign the agreement, Telsyte director of research consulting Chris Coughlan says there isn’t too much of a rush.

“This issue will really come into play once Telstra gets its structural separation undertaking. As soon as that happens, there is an obligation to disconnect copper services,” he says.

Both iiNet and Primus announced their move to sign the agreement yesterday, with iiNet chief regulatory officer Steve Dalby saying that after negotiations, final changes resolved some key points, including sharing of risk and liability.

“We welcome NBN Co.’s changes to the original WBA as a sensible and positive approach. Our product development, testing and marketing will continue uninterrupted, which is a very positive outcome for NBN Co., iiNet and, most importantly, our new NBN customers.”

Primus also said in a statement that it will continue to work with the NBN in delivering high quality services.

But Coughlan says a lot of telcos are waiting for Telstra to sign up. “This issue comes to fruition when the SSU is approved.”

“After that, there is an 18 month window for Telstra as far as the disconnection of customers on copper networks goes. There is an interim agreement that starts then.”

“At the moment, there’s no rush. But as soon as that SSU occurs, that phase begins of getting people disconnected and onto other services.”

Coughlan says the other part of the problem is that unlike a traditional wholesale agreement, each telco must agree.

“They have to negotiate with the entire industry, as opposed to a traditional relationship where there is flexibility. That adds time as well.”