[business spectator] NBN Co, the company building the $36 billion national broadband network (NBN), has been forced to redesign the project after the Australian Competition and Consumer Commission rejected its plan for just 14 points of interconnect (POIs) - located in capital cities, The Australian Financial Review reports.
The broadband provider will now have to offer internet service providers (ISPs) about 120 places to connect to the network. Industry analysts, however, are unsure how the large telcos – including Telstra, Optus and AAPT – will react, given they lobbied for between 200 and 400 POIs, the report says.
Before news of the radical redesign emerged, Optus had "warned of compensation claims running into several hundred millions of dollars if NBN Co's plan was allowed to stand," the paper says.
Meanwhile, sources told The Australian Financial Review the redesign is likely to have an adverse effect on the project's commercial return, therefore making it more difficult for NBN Co to uphold the government's pledge to offer a uniform national price across regional, rural and urban Australia.
NBN Co is due to release its altered business model later this month, the report says.
Telcos to benefit from NBN redesign: report