Australia - Customers may be "forced" to sign up to NBN

[business spectator] The federal government and private sector partners of the national broadband network (NBN) are negotiating over how to ensure customers who do not sign up to the NBN will continue to receive basic phone services, according to a report in The Australian.

Under current plans, citizens who live within the borders of NBN coverage must opt-in to the NBN program before a home with a fixed-line phone can choose a telecommunications provider.

The government is expected to propose competition and consumer reform legislation into parliament in the next three weeks, The Australian reported.

Officials are negotiating the balance between preserving consumers' freedom of choice but also ensuring a viable customer base for the network. Some are concerned that a system that would require citizens to opt-in to the NBN would mean many customers would not go to the effort.

In Tasmania, the state government has adopted a system where homes and businesses will be automatically connected to the NBN service unless they refuse. The decision followed estimates that only 16 to 25 per cent of homes in the state would subscribe to the NBN.

Other states, such as NSW and Victoria, have ruled out a similar arrangement. But the Tasmanian move has compelled government and private sector stakeholders to begin negotiations on how to protect consumer freedom while ensuring a solid enough customer base for the service to make it a viable entity.

Consumers may be forced to sign up to NBN