published by arrangement was ACMA each year. implemented. Contestability Without a In the future nbn In the future nbn In the future nbn the funding funding compete could compete compete arrangement arrangement in with other with other with other comes into place, place, it is providers to providers to providers to it is unlikely that unlikely that the provide fixed provide fixed provide fixed the fixed wireless fixed wireless and wireless and wireless and wireless and and satellite satellite services satellite services. satellite services. satellite services. services could be could be made made contestable. contestable. Competitive nbn would nbn could lower The cost of fixed End users would nbn would neutrality continue to face its prices in line wireless and receive direct continue to face costs that its with the amount satellite services subsidies. costs that its competitors do of additional would be shared competitors do not. funding it proportionally not until the received. across all funding comparable arrangement is providers. implemented. Sustainability nbn would be The cost of the The cost of the The proposal nbn would be increasingly fixed wireless and fixed wireless and would be complex continue to be uncompetitive. It satellite services satellite services and costly to uncompetitive on may be unable to would be would be administer. price until the continue to fund sustainably sustainably funding services. funded. funded. arrangement was implemented. Depending on the period of delay, it may be unable to continue to fund fixed wireless and satellite services. Economic This proposal This proposal Entry decisions This proposal This proposal would lead to would not distort would be efficient would not distort would lead to Efficiency: Allocative inefficient entry investment as nbn and other investment inefficient entry decisions by nbn choices by broadband choices by decisions by nbn efficiency comparable broadband providers would broadband comparable providers. providers or end face the same providers or providers. users. There incentives. commercial end End user End user would be users. However, it decisions for End users would decisions for distortions would be likely commercial shift away from associated with that few people services are also nbn comparable services are also direct budget would take up impacted as they services, because impacted as they funding, which fixed wireless or implicitly fund these providers implicitly fund could be in the satellite services would no longer order of $1.5 in the absence of
published by ACMA each year. arrangement was implemented. Contestability Without a funding arrangement in place, it is unlikely that the fixed wireless and satellite services could be made contestable. In the future nbn compete with other providers to provide fixed wireless and satellite services. In the future nbn could compete with other providers to provide fixed wireless and satellite services. In the future nbn compete with other providers to provide fixed wireless and satellite services. the funding arrangement comes into place, it is unlikely that the fixed wireless and satellite services could be made contestable. Competitive neutrality nbn would continue to face costs that its competitors do not. nbn could lower its prices in line with the amount of additional funding it received. The cost of fixed wireless and satellite services would be shared proportionally across all comparable providers. End users would receive direct subsidies. nbn would continue to face costs that its competitors do not until the funding arrangement is implemented. Sustainability nbn would be increasingly uncompetitive. It may be unable to continue to fund services. The cost of the fixed wireless and satellite services would be sustainably funded. The cost of the fixed wireless and satellite services would be sustainably funded. The proposal would be complex and costly to administer. nbn would be continue to be uncompetitive on price until the funding arrangement was implemented. Depending on the period of delay, it may be unable to continue to fund fixed wireless and satellite services. Economic Efficiency: Allocative efficiency This proposal would lead to inefficient entry decisions by nbn comparable providers. End user decisions for commercial services are also impacted as they implicitly fund This proposal would not distort investment choices by broadband providers or end users. There would be distortions associated with direct budget funding, which could be in the order of $1.5 Entry decisions would be efficient as nbn and other broadband providers would face the same incentives. End users would shift away from nbn comparable services, because these providers would no longer This proposal would not distort investment choices by broadband providers or commercial end users. However, it would be likely that few people would take up fixed wireless or satellite services in the absence of This proposal would lead to inefficient entry decisions by nbn comparable providers. End user decisions for services are also impacted as they implicitly fund
ris_for_consultation.docx