Optus Next Generation Broadband

How can a monopoly supplier of broadband access be encouraged to behave like a business facing stiff competition?

The Australian government is funding a National Broadband Network to be run by a Government Business enterprise NBN Co. Optus, the second largest telecommunications carrier Australia asked SPC Network to review how the NBN monopoly can be incentivised to behave like a firm in a competitive market to ensure the best outcome for retail competition. In particular we were asked to review how NBN Co could be encouraged to be responsive to customer needs and continuously to improve quality. SPC Network proposed a form of price cap regulation incorporating quality incentives.

"Many thanks for your work on this report. The timing of the report and its conclusions are very helpful because we are already seeing issues arise in terms of the interaction between NBN Co and access seekers”.