DOCSLIB.ORG

Open Access to Next Generation Broadband

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
Open Access to Next Generation Broadband OPEN ACCESS TO NEXT GENERATION BROADBAND A thesis presented to the Queensland University of Technology In fulfilment of the requirements for the degree of Doctor of Philosophy by Douglas Ross Kelso B. Eng. (Hons) (University of Queensland) M. Eng. Sc. (University of Queensland) Grad. Dip. Media, Comms. & IT Law (Melbourne University) Creative Industries Faculty February 2008 D.R.Kelso PhD Thesis, QUT, February 2008: Open Access to Next Generation Broadband {single line spaced version} Keywords: ACCC, access, broadband, communications policy, fibre to the home, fibre to the node, Foxtel, next generation broadband, next generation networks, network neutrality, open access, optical fibre, telecommunications, telecommunications policy, Telstra, TransACT. ii D.R.Kelso PhD Thesis, QUT, February 2008: Open Access to Next Generation Broadband {single line spaced version} Abstract Wireline telecommunications infrastructure in the customer access network or CAN is undergoing a veritable technological and commercial revolution. The paired-copper CAN is being modernised with optical fibre deployed ever closer to customers, culminating soon with fibre-to-the-home networks or some variant thereof. Although bandwidth ceases to be a scarce commodity, the underlying natural monopoly will most likely be strengthened. National competition policy desires open access to multiple service providers yet commercial pressure calls for closure. This has been the recent experience with the hybrid fibre coaxial networks delivering pay television and Internet access. This research asks the question: What are the factors that prevent open access to the broadband services of next generation wireline infrastructure? How can these obstacles be overcome? A particular focus is given to non-price considerations which come to the fore due to the unique strategic and technological characteristics of optical fibre in the access network. The methodological approach involves data gathering via three case studies - that of the Telstra/Foxtel pay television network, the TransACT broadband network and fibre-to-the-home networks in general. Although the ultimate focus is on the research question above, these cases are discussed in a holistic way with consideration of a number of contextual factors. The research also examines the relationship between the concepts of ‘open access’ and ‘network neutrality’, visiting the concept of ‘common carriage’ in doing so. Several findings are reached that illuminate the field of telecommunications access regulation as applied to infrastructure capable of delivering truly next generation broadband services. Since 1993, our politicians have only paid lip service to the importance of competition and have deferred to the demands of the dominant builder of telecommunications infrastructure. From the viewpoints of end-users and access seekers, the access regime is found to be incapable of dealing with the technical and commercial bottlenecks arising from optical fibre in the CAN. It is concluded that communication between users should be recognised as the prime purpose of telecommunications and that the regulatory regime should not reward discriminatory practices detracting from the development of a networked information economy. It is also concluded that dominant players should never be rewarded with access holidays which could otherwise entrench market dominance through the creation of new bottlenecks. Access regulation is ill-equipped to cope with optical fibre in the CAN until it also recognizes the strategic potential of such infrastructure. iii D.R.Kelso PhD Thesis, QUT, February 2008: Open Access to Next Generation Broadband {single line spaced version} TABLE OF CONTENTS Keywords …………………………………………………………………………………………..…... ii Abstract ……………………………………………………………………………………………..…. iii Table of Contents ………………………………………………………………………………….…... iv List of Figures & Tables ………………………………………………………………………….…... viii List of Abbreviations ………………………………………………………………………………..…. ix Statement of Original Authorship ……………………………………………………………………… x Acknowledgments ……………………………………………………………………… …………... xi CHAPTER ONE – INTRODUCTION ................................................................ 1 1.1 Significance of this Research ....................................................................................................1 1.2 Structure of Thesis.....................................................................................................................2 1.3 Summary of Findings ................................................................................................................3 CHAPTER TWO – LITERATURE REVIEW & RESEARCH PROBLEM.......... 6 2.1 Literature Review ......................................................................................................................6 2.1.1 Perspectives on Access ...........................................................................................................6 2.1.2 Perspectives on Openness .......................................................................................................8 2.1.3 Control of Access..................................................................................................................11 2.1.4 US Approaches to Open Access ...........................................................................................13 2.1.5 EU Approaches to Open Access ...........................................................................................18 2.1.6 Australian Approaches to Open Access................................................................................20 2.1.7 Consumers, Users and Producers..........................................................................................23 2.1.8 Network Technology ............................................................................................................24 2.2 Formulating the Research Problem .......................................................................................25 2.2.1 Issues from Literature Review ..............................................................................................25 2.2.2 Research Question ................................................................................................................27 2.3 Untangling the Terminology...................................................................................................27 2.3.1 The ‘Broadband’ Dilemma ...................................................................................................28 2.3.2 ‘Next Generation’ .................................................................................................................34 CHAPTER THREE – RESEARCH METHODOLOGY.................................... 38 3.1 Introduction .............................................................................................................................38 3.2 Case Study Research ...............................................................................................................39 3.3 Case Criteria, Number and Selection.....................................................................................42 3.3.1 Criteria ..................................................................................................................................42 3.3.2 Selection................................................................................................................................43 3.3.3 Discussion of Selection.........................................................................................................46 3.4 Data Sources.............................................................................................................................47 3.4.1 Primary Sources....................................................................................................................47 3.4.2 Secondary Sources................................................................................................................48 iv D.R.Kelso PhD Thesis, QUT, February 2008: Open Access to Next Generation Broadband {single line spaced version} CHAPTER FOUR –TELSTRA/FOXTEL PAY TV NETWORK CASE STUDY49 4.1 The Birth & Closure of Cable.................................................................................................49 4.1.1 Ending the moratorium .........................................................................................................49 4.1.2 The cable guys ......................................................................................................................51 4.1.3 The coming of closure...........................................................................................................56 4.1.4 The government decides .......................................................................................................60 4.2 Potential Bottlenecks with HFC Networks ............................................................................64 4.3 Opening the Door to Access: Deeming & Declaration..........................................................67 4.4 Challenge & Counter-Challenge ............................................................................................70 4.4.1 Validity of deeming and declaration.....................................................................................71 4.4.2 Sufficient amount of service/channel capacity......................................................................71 4.4.3 Protected contractual right ....................................................................................................72
Load more

Recommended publications
  • Pay TV in Australia Markets and Mergers
    Pay TV in Australia Markets and Mergers Cento Veljanovski CASE ASSOCIATES Current Issues June 1999 Published by the Institute of Public Affairs ©1999 by Cento Veljanovski and Institute of Public Affairs Limited. All rights reserved. First published 1999 by Institute of Public Affairs Limited (Incorporated in the ACT)␣ A.C.N.␣ 008 627 727 Head Office: Level 2, 410 Collins Street, Melbourne, Victoria 3000, Australia Phone: (03) 9600 4744 Fax: (03) 9602 4989 Email: [email protected] Website: www.ipa.org.au Veljanovski, Cento G. Pay TV in Australia: markets and mergers Bibliography ISBN 0 909536␣ 64␣ 3 1.␣ Competition—Australia.␣ 2.␣ Subscription television— Government policy—Australia.␣ 3.␣ Consolidation and merger of corporations—Government policy—Australia.␣ 4.␣ Trade regulation—Australia.␣ I.␣ Title.␣ (Series: Current Issues (Institute of Public Affairs (Australia))). 384.5550994 Opinions expressed by the author are not necessarily endorsed by the Institute of Public Affairs. Printed by Impact Print, 69–79 Fallon Street, Brunswick, Victoria 3056 Contents Preface v The Author vi Glossary vii Chapter One: Introduction 1 Chapter Two: The Pay TV Picture 9 More Choice and Diversity 9 Packaging and Pricing 10 Delivery 12 The Operators 13 Chapter Three: A Brief History 15 The Beginning 15 Satellite TV 19 The Race to Cable 20 Programming 22 The Battle with FTA Television 23 Pay TV Finances 24 Chapter Four: A Model of Dynamic Competition 27 The Basics 27 Competition and Programme Costs 28 Programming Choice 30 Competitive Pay TV Systems 31 Facilities-based
    [Show full text]
  • Channel Guide
    Channel Guide To view your favourite channels, simply turn on your TV using the remote provided and select the channel number listed below. Entertainment 101 / 149 103 / 150 1105 / 105 / 151 1106 / 106 / 152 A fun, vibrant channel, that celebrates A cracking celebration of brilliant British Escape with larger than life reality, soap Your destination for original, exclusive TV Hits we love to love. See more on entertainment. dramas and daytime favourites – Arena and award winning local and TVH!TS+2 on channel 149. has it all. international lifestyle productions. 1108 / 108 111 / 154 113 / 156 1119 / 119 / 161 Hungry for non-stop entertainment? Provides a fun, entertaining place to FOX Classics is the only channel which Be entertained by edgy and FOX8’s got you covered with relax and watch your favourite gems. showcases classic movies and classic unconventional cinematic drama your favourite animations and DC television, 24 hours a day. series that redefine the genre. superheroes. 121 / 162 1122 / 122 / 614 1123 / 123 / 163 124 The home of comedy. Australia’s Discover genuine, passionate and Absorbing, accessible and adventurous. MTV showcases an array of international 24-hour channel dedicated to making authentic characters who risk life, limb There’s always something to feed your reality, drama & live music shows PLUS people laugh. and fortune to survive and win. imagination on Syfy. LIVE action from its annual award shows. 125 126 127 / 164 128 As Pop Culture evolves, E! will always be Expertise and inspiration for women who Australia’s dedicated food channel The ultimate destination for home at the heart of it, making sure you don’t aspire to look fabulous, live well, be daring delivering the best in delicious and property entertainment.
    [Show full text]
  • ANNUAL REPORT 2019 Revellers at New Year’S Eve 2018 – the Night Is Yours
    AUSTRALIAN BROADCASTING CORPORATION ANNUAL REPORT 2019 Revellers at New Year’s Eve 2018 – The Night is Yours. Image: Jared Leibowtiz Cover: Dianne Appleby, Yawuru Cultural Leader, and her grandson Zeke 11 September 2019 The Hon Paul Fletcher MP Minister for Communications, Cyber Safety and the Arts Parliament House Canberra ACT 2600 Dear Minister The Board of the Australian Broadcasting Corporation is pleased to present its Annual Report for the year ended 30 June 2019. The report was prepared for section 46 of the Public Governance, Performance and Accountability Act 2013, in accordance with the requirements of that Act and the Australian Broadcasting Corporation Act 1983. It was approved by the Board on 11 September 2019 and provides a comprehensive review of the ABC’s performance and delivery in line with its Charter remit. The ABC continues to be the home and source of Australian stories, told across the nation and to the world. The Corporation’s commitment to innovation in both storytelling and broadcast delivery is stronger than ever, as the needs of its audiences rapidly evolve in line with technological change. Australians expect an independent, accessible public broadcasting service which produces quality drama, comedy and specialist content, entertaining and educational children’s programming, stories of local lives and issues, and news and current affairs coverage that holds power to account and contributes to a healthy democratic process. The ABC is proud to provide such a service. The ABC is truly Yours. Sincerely, Ita Buttrose AC OBE Chair Letter to the Minister iii ABC Radio Melbourne Drive presenter Raf Epstein.
    [Show full text]
  • Annual Report
    08 Annual Report iinet.net.au iiNet Limited ACN 068 628 937 ABN 48 068 628 937 Contents Financial Calendar and Corporate Information 1 About iiNet 3 iiNet History 17 Financial Highlights 19 Operational Highlights 20 Corporate Highlights 21 Education and Community Outreach 23 Chairman’s Review 25 Managing Director’s Report 29 Directors’ Report 35 Corporate Governance Statement 65 Financial Report 71 Directors’ Declaration 139 Independent Auditor’s Report 141 Shareholder Information 143 Financial Calendar Annual General Meeting The Annual General Meeting of iiNet Limited will be held at the Sheraton Hotel, 297 Adelaide Terrace, Perth, Western Australia, on Monday the 24th of November, 2008 at 10:30am. Other key dates in the 2009 financial year: • Annual report and Notice of Annual General Meeting mailed to shareholders October 2008 • Half-year results February 2009 • Full-year results August 2009 Corporate Information Directors Michael Smith Chairman Michael Malone Managing Director Andrew Milner Director (non-executive) Peter James Director (non-executive) Paul Broad Director (non-executive) Tony Grist Director (non-executive) David Grant Director (non-executive) Company Secretary David Buckingham Principal Place of Business and Registered Office iiNet Limited Durack Centre, Level 6 263 Adelaide Terrace Perth WA 6000 Share Registry Computershare Investor Services Pty Ltd Level 2 Reserve Bank Building 45 St George’s Terrace Perth WA 6000 Telephone: +61 8 9323 2000 Internet: www.computershare.com.au Stock Exchange Listings iiNet Limited’s ordinary shares are quoted on the Australian Stock Exchange Limited (ASX: IIN). Auditors Ernst & Young The Ernst & Young Building 11 Mounts Bay Road Perth WA 6000 1 iiNet Annual Report 2008 Financial Calendar and Corporate Information 2 08 About iiNet We’ve come a long way since our days of working out of a suburban garage in the early 90s.
    [Show full text]
  • TPG Telecom Limited and Its Controlled Entities ABN 46 093 058 069
    TPG Telecom Limited and its controlled entities ABN 46 093 058 069 Annual Report Year ended 31 July 2016 2 TPG Telecom Limited and its controlled entities Annual report For the year ended 31 July 2016 Contents Page Chairman’s letter 3 Directors’ report 5 Lead auditor’s independence declaration 34 Consolidated income statement 35 Consolidated statement of comprehensive income 36 Consolidated statement of financial position 37 Consolidated statement of changes in equity 38 Consolidated statement of cash flows 39 Notes to the consolidated financial statements 40 Directors’ declaration 91 Independent auditor’s report 92 ASX additional information 94 3 TPG Telecom Limited and its controlled entities Chairman’s letter For the year ended 31 July 2016 Dear Shareholders On behalf of the Board of Directors, I am pleased to present to you the TPG Telecom Limited Annual Report for the financial year ended 31 July 2016 (“FY16”). Financial Performance FY16 was another successful year for the Group. Continued organic growth and the integration of iiNet into the business have resulted in further increases in revenue, profits and dividends for shareholders. FY16 represents the eighth consecutive year that this has been the case. A detailed review of the Group’s operating and financial performance for the year is provided in the Operating and Financial Review section of the Directors’ Report starting on page 7 of this Annual Report, and set out below are some of the key financial highlights and earnings attributable to shareholders from the year. FY16 FY15 Movement Revenue ($m) 2,387.8 1,270.6 +88% EBITDA ($m) 849.4 484.5 +75% NPAT ($m) 379.6 224.1 +69% EPS (cents/share) 45.3 28.2 +61% Dividends (cents/share) 14.5 11.5 +26% iiNet Acquisition At the beginning of FY16 we completed the acquisition of iiNet and consequently there has been significant focus during the year on integrating the businesses to improve the efficiency of the combined organisation.
    [Show full text]
  • Amaga 2020 Individual.Pdf
    Tax invoice Membership category Payment details ABN 83 048 139 955 Membership Form Regular (Loyalty) Concession* (Loyalty) Membership Fee $ (inc of GST) (inc of GST) + Networks $ Individual □ $180 ($162) □ $90 ($81) + Donation* $ Your information Individual (existing Total Payable $ New member ICOM members only) □ $171 ($153) □ $86 ($76.50) □ Australian Museums and Galleries Association AMaGA Membership Card * Donations over $2.00 are tax deductible. □ Renewing member Individual employed by a member - Australian Museums and Galleries Association □ $144 ($144**) Member number (if known) AMaGA □ Membership Card institution Individual employed Payment method AMaGA by a member Please email or post your completed form for payment □ Please send me a new membership card □ $144 ($144**) - Member Number institution (existing New members will automatically get sent a card. Expiry processing. Your receipt and membership card or sticker will be Member Name AMaGA is a partner to ICOM members only) Renewing members will receive a sticker with your Australian AMaGA Museums ICOM Australia. and Galleries If found, please return to Association PO Box 24, Deakin West receipt/invoice to attach to your current card. Member ACT 2600 issued when payment has been processed. * Concession rates available to retired, full-time students, pensioners, unemployed Member Number Expiry Member Name and volunteers Australian AMaGA is a partner to Museums ICOM Australia. and Galleries If found, please return to Association PO Box 24, Deakin West Member ACT 2600 made payable to Australian Museums and Galleries Association ** Discounts are capped at 20% □ Cheque Title □ Mr □ Miss □ Ms □ Mrs □ Dr □ Name Loyalty Discount Members of more than five consecutive years can claim a 10% loyalty Credit Card (Visa or Mastercard only) discount on their membership.
    [Show full text]
  • Liberty Global's Australian Subsidiary AUSTAR Receives a Non-Binding
    Liberty Global’s Australian Subsidiary AUSTAR Receives a Non-Binding and Conditional Acquisition Proposal from FOXTEL Englewood, Colorado – May 25, 2011: Liberty Global, Inc. (“Liberty Global”) (NASDAQ: LBTYA, LBTYB and LBTYK) announced today that its 54.2%-owned subsidiary, AUSTAR United Communications Limited (“AUSTAR”), has received an indicative, non-binding and conditional proposal (“Proposal”) from FOXTEL to acquire 100% of AUSTAR for a price of 1.52 Australian dollars (AUD) in cash per share. A copy of AUSTAR’s release to the Australian Securities Exchange is set forth below. The Proposal values AUSTAR at AUD 2.5 billion (including net debt of AUD 525 million at March 31, 2011), representing an enterprise value multiple of approximately 10 times AUSTAR’s consolidated operating cash flow (as customarily defined by Liberty Global) for the 12 months ended March 31, 2011. Assuming definitive agreements are reached on the indicative terms and the conditions to closing are satisfied, Liberty Global would realize gross proceeds of AUD 1.0 billion ($1.1 billion based on the exchange rate at May 24, 2011) for its 688.5 million AUSTAR shares. In light of the non-binding and conditional nature of the Proposal, no assurance can be given that the Proposal will lead to a definitive transaction. Further, to the extent a definitive transaction is entered into, no assurance can be given that the conditions to closing that definitive transaction will ultimately be satisfied. Liberty Global is being advised by Allen & Overy in connection with this Proposal. About Liberty Global, Inc. Liberty Global is the leading international cable operator offering advanced video, voice and broadband internet services to connect its customers to the world of entertainment, communications and information.
    [Show full text]
  • PDF (Accepted Manuscript)
    Swinburne Research Bank http://researchbank.swinburne.edu.au Author: Morsillio, R. & Barr, T. Title: Innovation or disruption? The National Broadband Network comes to Australian TV Year: 2013 Journal: International Journal of Digital Television Volume: 4 Issue: 3 Pages: 239-260 URL: http://doi.org/10.1386/jdtv.4.3.239_1 Copyright: Copyright © 2013 Intellect. This is the author’s version of the work, posted here with the permission of the publisher for your personal use. No further distribution is permitted. You may also be able to access the published version from your library. The definitive version is available at: http://ingentaconnect.com Swinburne University of Technology | CRICOS Provider 00111D | swinburne.edu.au Powered by TCPDF (www.tcpdf.org) Innovation or disruption? The National Broadband Network comes to Australian TV Robert Morsillo and Trevor Barr, Swinburne University Abstract There are many forces for change confronting the well-established institutional arrangements underpinning Australian media industries, with commercial television, in particular, likely to be most challenged during the next five years. New distribution and delivery models connected to the proposed high capacity National Broadband Network (NBN), along with new content providers and changing viewer preferences are likely to drive major changes to existing television arrangements. In a rapidly changing environment, this article seeks to relate established concepts of innovation and creative destruction, disintermediation and disruption to the impact these new NBN mediated opportunities may have on existing TV arrangements, both free-to-air (FTA) and subscription (STV). It seeks to explore the extent to which TV-like services over the NBN might disrupt incumbent TV broadcasters; the extent to which changing consumer preferences and practices might disrupt current business models; and how incumbent TV broadcasters might be responding to these threats with their own innovations.
    [Show full text]
  • Austar Lifesciences Limited 奧星生命科技有限
    THIS CIRCULAR IS IMPORTANT AND REQUIRES YOUR IMMEDIATE ATTENTION If you are in any doubt as to any aspect of this circular or as to the action to be taken, you should consult your licensed securities dealer, bank manager, solicitor, professional accountant or other professional adviser. If you have sold or transferred all your shares in Austar Lifesciences Limited (“Company”), you should at once hand this circular and the accompanying form of proxy to the purchaser, the transferee or to the bank, licensed securities dealer or other agent through whom the sale or transfer was effected for transmission to the purchaser or transferee. Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this circular, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this circular. Austar Lifesciences Limited 奧 星 生 命 科 技 有 限 公 司 (Incorporated in the Cayman Islands with limited liability) (Stock Code: 6118) PROPOSED GRANT OF GENERAL MANDATES TO ISSUE AND REPURCHASE SHARES; RE-ELECTION OF RETIRING DIRECTORS AND NOTICE OF ANNUAL GENERAL MEETING A notice convening the annual general meeting of the Company to be held at 10:00 a.m. on Friday, 29 May 2020 at Conference Room, Rooms 2010-2013, 20th Floor, No. 1018, Changning Road, Changning District, Shanghai, the People’s Republic of China (“Annual General Meeting”) (or any adjournment thereof), is set out on pages AGM-1 to AGM-5 of this circular.
    [Show full text]
  • Inside This Issue
    Lake Pointe Subdivision Inside this Issue: • National Night Out 2019 Party Pics ........................... Pages 5-6 • Holiday Trash Collection Schedules .......................... Page 8 • NTRCA is seeking Neighborhood Reps!..................... Page 11 • Harvest Fest & Car Show is November 2nd ............... Page 18 ASSOCIATIONOUR COMMUNITY UPDATES Need to Report a Maintenance Issue? If you notice a maintenance issue within the community, send an email to [email protected]. Your message will be routed to our maintenance department NEW TERRITORY RESIDENTIAL for a speedy response. Feel free to snap a pic with your COMMUNITY ASSOCIATION (NTRCA) phone to illustrate the issue you are reporting, and provide details about the exact location. 6101 Homeward Way Sugar Land, TX 77479 Is Your Street Light Out? www.newterritory.org If you notice a street light out, write down the 6-digit number on the light pole. Then report the outage to CenterPoint Energy at 713-207- 2222 or report it online at http://cnp.centerpointenergy.com/outage. Association Phone Numbers Association Office 281-565-0616 Are You a New Resident in the Community? Association Fax 281-565-0188 If so, welcome to New Territory! Please stop by the Association office The Club 281-565-1070 for a New Homeowner¶s Guide, and fill out forms to register for use of The Club Fax 281-565-1130 The Club facility. Then drop by The Club and check out the pool and Tennis Pro Shop 281-565-5355 all of the other wonderful amenities that are available to you. For a preview of amenities, visit the Parks and Recreation section on the newterritory.org website.
    [Show full text]
  • “Light-Touch” Internet Regulation
    THE USE AND ABUSE OF “LIGHT-TOUCH” INTERNET REGULATION JOHN BLEVINS ABSTRACT The Federal Communications Commission (“FCC”) recently repealed network neutrality regulations. In doing so, the agency claimed to be restoring the traditional “light-touch” deregulatory approach that successfully guided Internet policy for decades. Today, this version of history—what I call the light- touch narrative—provides a key normative foundation for deregulatory policy. It also influences current interpretations of positive law. Indeed, the FCC’s legal authority to repeal network neutrality rules relies on statutory interpretations reflecting these historical assumptions. This Article contends, however, that the light-touch narrative has become misleading, because it relies on flawed understandings of the Internet’s history. It assumes that today’s Internet access providers are the legal equivalents of earlier data and dial-up service providers. As a result, policymakers cite the deregulation of these earlier entities to justify deregulating modern access providers—an approach that is both normatively and legally problematic. To illustrate these problems, this Article examines the origins and evolution of light- touch Internet regulation. It then explores the legal and policy implications of this history, particularly with respect to the FCC’s recent network neutrality repeal and its legal challenges. John J. McAulay Distinguished Professor of Law, Loyola University New Orleans College of Law. I would like to thank Adam Gershowitz, Johanna Kalb, and John Lovett for helpful advice. 177 178 BOSTON UNIVERSITY LAW REVIEW [Vol. 99:177 CONTENTS INTRODUCTION ............................................................................................... 179 I. AN OVERVIEW OF LIGHT-TOUCH POLICY APPROACHES ......................... 185 II. THE ORIGINS OF LIGHT-TOUCH POLICIES ................................................ 194 A.
    [Show full text]
  • Herbert Geer Letter
    20 March 2012 PUBLIC VERSION Mr Bruce Mikkelsen Australian Competition and Consumer Commission GPO Box 3131 Canberra ACT 2601 By email: [email protected] Dear Mr Mikkelsen Proposed acquisition of Austar by Foxtel – response to proposed undertakings This submission is provided by iiNet Limited and its wholly owned subsidiary TransACT Communications Pty Ltd (referred to collectively in this letter as iiNet) in response to the Commission‟s letter of 7 March 2012 inviting comments about the effectiveness of the section 87B undertaking offered by Foxtel in relation to its proposed acquisition of Austar. 1. INTRODUCTION The proposed undertaking will have little (if any) meaningful effect on the market for the acquisition of compelling content in the event that the merger is allowed to go ahead. The undertaking also does nothing to address the market dominance issue in the Australian subscription TV market, or related telecommunications markets, and actually exacerbates the issue which will result in a substantial lessening of competition. It is apparent from the preamble to the proposed undertaking that the main source of competition that is being relied on to provide competitive restraint is IPTV. The only way that this can realistically be achieved is if the undertaking improves the access to compelling content for new and emerging IPTV providers to a level where those IPTV providers will actually be in a position to compete with the merged entity for the acquisition of content. It is impossible for this objective to be achieved unless IPTV providers have access to premium content that is capable of attracting large numbers of subscribers.
    [Show full text]