Variation request submitted (multi-technology NBN and revised Definitive Agreements)20 Mar 2015

On 20 March 2015 Telstra submitted its revised Migration Plan to the ACCC for assessment and approval.

Shift to a multi-technology model NBN and the revised Definitive Agreements

In April 2014 the government directed NBN Co to use a multi-technology mix (MTM) model in the rollout of the NBN, comprising fibre-to-the-premises (FTTP), fibre-to-the-node (FTTN), fibre-to-the-basement (FTTB) and HFC infrastructure.

Throughout 2014, Telstra and NBN Co negotiated revised Definitive Agreements to facilitate the implementation of the MTM model NBN. The revised Definitive Agreements include a condition precedent that the ACCC approve a revised Migration Plan from Telstra reflecting the new MTM arrangements.

Regulatory instruments

To enable Telstra to submit a revised Migration Plan to the ACCC, the government modified the two regulatory instruments - the Migration Plan Principles and the Specified Matters Instrument - that set out in detail the matters that Telstra’s Migration Plan must cover and the manner in which it must deal with those matters. While the ACCC provided high level comments on the draft Migration Plan Principles, it did not have a substantive role in their development.

Revisions to the Migration Plan

Telstra’s revised Migration Plan contains extensive changes. These include:

  • extending the provisions so that they provide for the migration of services to FTTN, FTTB and HFC connections with the NBN, not just FTTP
  • adopting managed disconnection arrangements that have been implemented on an informal basis for Fibre Serving Area Module 32 and into the future
  • incorporating processes that were developed by Telstra and approved by the ACCC after the acceptance of the original Migration Plan (‘Required Measures’), as well as setting out the process for receiving ACCC approval for the two remaining Required Measures and modifying or replacing the existing Required Measures.

ACCC assessment process

In assessing Telstra’s revised Migration Plan, the ACCC’s role is limited to determining whether the Plan, as varied, complies with the Migration Plan Principles and Specified Matters Instrument. The ACCC cannot refuse to approve the revised Migration Plan merely because of a preference for another approach, nor can it seek revisions that are not consistent with the Migration Plan Principles.

The ACCC is seeking feedback from industry on whether Telstra’s revised Migration Plan complies with the Migration Plan Principles and the Specified Matters Instrument. The ACCC is required to publicly consult for 28 days on the revised Migration Plan. Submissions to the ACCC’s discussion paper are due by 4 May 2015.

The ACCC is working with Telstra and NBN Co to make some additional documents available to help stakeholders make informed submissions. For example, Telstra and NBN Co have revised the Disconnection Protocols under the Definitive Agreements, which set out the process which Telstra must follow for disconnection of premises from its copper and HFC networks.

Some of the measures to effectively migrate services in FTTN and FTTB areas will need to be developed outside the scope of the Migration Plan. The discussion paper notes that Telstra and NBN Co are developing an integrated migration process for these premises. The details of this process will be determined following consideration by a Communications Alliance working group. Communications Alliance members (or industry participants wishing to become a member) can obtain more information about this process by sending an email to info@commsalliance.com.au. The ACCC can field any enquiries from non-members on the matter using the contact details in the discussion paper.