The Australian Competition and Consumer Commission today released a discussion paper on the number and location of initial Points of Interconnection (POI) for the National Broadband Network (NBN) that will best meet the long-term interests of end-users.

A POI is the location where traffic is exchanged between one network and another. The location and number of POIs has important implications for the future structure of competition in the telecommunications industry under the NBN.

The government has asked the ACCC and NBN Co to provide advice on POIs. The matters that the advice is expected to address include:

  • short and long-term competition impacts of POI alternatives on the backhaul and retail markets
  • current and prospective state of competition in the backhaul market including pricing and the location and value of any assets that may be stranded by the POI alternatives and options for addressing any adverse implications (if any) for existing backhaul asset owners
  • implications (if any) for potential future Layer 1 unbundling and home-run topology, and
  • stakeholder responses to the consultation process.

ACCC chairman Graeme Samuel said: "The location and number of POIs is an important issue for the telecommunications industry. This consultation will seek industry's views on a range of issues, including the options for POI location that have been identified by NBN Co.

"The consultation will assist the ACCC in forming an opinion as to the appropriate number and location of POIs that is in the long-term interests of end-users."

The ACCC invites all interested parties to make submissions to the discussion paper by 8 November 2010.

The discussion paper, which includes NBN Co's Public Position Paper, will be available on the ACCC website.