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Telecom corporations will need to think once again about investing money in their own networks if a thought comes that the government's national broadband company can be given an undue benefit, states a prominent business group.
The management of these companies has become more significant as it is known that the broadband network and Telstra could split which create opposing networks for infrastructure.
This can put a lot of stress on the government so as to ensure that the 2 companies battle on an even field in spite of a strong interest from the government to ensure that the Federal government owned company which was created so as to set up the network,
NBN Co, is monetarily feasible.
The legislation that set the rules for NBN Co is quiet on the subject of neutrality in competitiveness; a rule that government managed industries must not enjoy an advantage over their private sector competitors in interacting with the Federal government.
Anxiety about the subject of competitive neutrality follows objections made by telecom companies to a proposal made in the draft legislation to give Stephen Conroy, the Communications Minister, prudence to permit NBN Co to tender retail services.
The Federal government is supposed to take the legislation of NBN Co to Parliament within the next 2 months. However, it is estimated to face numerous objections from the Greens about the need of the company to be privatized in the five years of the network's conclusion.
The Federal government is quite optimistic about luring Telstra into trading its fixed line network with NBN Co. This move will substantially bring down the $43 billion cost that is needed to construct the network. But all negotiations seem to be freezing, with Telstra saying last month that there was a noteworthy gap between both the parties.
