With the recently government annoucement on the regulatory reform which includes Telstra being require to choose between being a retail operator or a network operator, the question that should be on many developers minds is where does that leave them with Velocity.

Velocity is a Telstra's Fibre to the Home solution delivered by their Smart Communities group. This is very much a retail solution and with structure seperation depending on which way Telstra chooses to go could result in the end of this program. If Telstra becomes a retail operator only (which in my opinion is most likely - see here for my option) then Velocity will be no longer as they will not be able to own wireline networks and also retail services.

This is also backed up by the draft legistation to be introduced into parliament. Under division 2 - Structural Seperation" Telstra "will not supply fixed-line carriage services to retail customers using a telecommunications network over which Telstra is in a position to exercise control and Telstra will not be in a position to exercise control of a company that supplies fixed-line carriage services to retail customers using a telecommunications network over which Telstra is in a position to exercise control". So that means Velocity and Bigpond become mutually exclusive.

With the mandating of FTTH for all greenfield estates progressing forward, developers will be required to make a decision over which FTTH provider to choose. A Telstra path may not be in their best interests because in 12 months time the landscape of Telstra will have changed so much. Choosing Telstra for FTTH has now become a big risk.

1 comments:

At 15 September, 2009 11:34 Donald said...

Stephen - win for the developers that already have cosy little arrangements in place with Telstra. Telstra install their below par network and then the Government tears up the exclusity clause.

Ross

 

Post a Comment