The NBN Co Optus 'gag' in perspective

The latest anti-NBN report from the Murdoch press - not known as the number one fan of the project - has revealed that "an $800 million deal with Optus [for the closure of its HFC network] includes an 'anti-disparagement' provision," nevertheless it's no big deal and no different to conditions applying to Telstra.

The purpose of this 'gag' is not so that Optus can hang on to clients of its HFC network, which will be progressively shut down as the NBN rolls out, nevertheless to prevent it promoting wireless broadband as a direct competitor to NBN, by slagging off the NBN.

The net effect is that

The net effect is that, as the NBN Co submission concluded, "The provisions against Telstra promoting wireless services as substitutable for fibre services will have no effect on competition for wireless broadband services."

Affect in what way? Only that Optus will be prohibited from going to them and saying words to the effect: "Look your Optus HFC broadband service is being shut down and you are being transferred to the NBN's FTTH network, however really it's a dog, and it's expensive. You'd be better off with our wireless broadband service."

The aim of these clauses

"The aim of these clauses was to try and make sure we protect the Australian taxpayer whose money we are spending by making sure we get traffic onto the network and that there was nothing said by the people we are doing the deal with that sledges the NBN."

The reality is that Optus will be free to promote wireless broadband on its merits, such as Telstra will. And Telstra CEO David Thodey does not see the restrictions as a big deal. He was quoted by NBN Co in its submission saying "The only constraint we have is to directly promote wireless instead of the NBN fixed broadbandSo I don't think it's an issue at all."