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In its submission to the Federal governments review telecommunications review, Google has warned the Rudd government that by not splitting the network and retail broadband into two separate entities, competition and thus consumers will suffer the price consequences.
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According to the Google submission, “As important as the goal of universal access to fast broadband is, it will also be the affordability of broadband services that will ensure that Australians will be able to fully embrace the significant benefits of participation in the digital economy.
Google also said that that it “believes that some form of strong and independently enforced functional separation, or structural separation, is necessary in order to achieve this key objective”.
Google said it was “concerned to ensure that the Government’s well-intentioned investment in the NBN does not inadvertently lead to decreased competition and access to broadband services in the short term”.
In this view, Google is singing from the same hymn sheet as both Optus and Terria who reiterated their arguments in support of this type of structural separation.
The Google submission was just one of over 70 from ISPs, telcos, local and state governments received by Communications Minister Senator Stephen Conroy as part of a review being held over the tender for the $4.7 Billion broadband contract.
