[LINK] Stand up, ACCC

[stephen at melbpc.org.au]

The gouge is on for NBN users

By Henry Ergas The Australian August 26, 2011 12:00AM 
http://www.theaustralian.com.au/news/opinion/the-gouge-is-on-for-nbn-
users/story-e6frg6zo-1226122392946  (snip)


Central to the government's case for the NBN was that it "would not need 
to make the rate of return that the telco sector is used to". 

"This project", Stephen Conroy promised, only requires "a modest return 
of 6 to 7 per cent". And no less an authority than Julia Gillard said a 
return a smidgen above the commonwealth bond rate would be "a viable rate 
of return" for the NBN, "recovering all its funding costs".

Yet NBN Co now wants to charge consumers on the basis of rates of return 
that start at seven times the bond rate, and that even when the network 
is fully mature, remain far above it.

Reconciling the government's repeated claims with NBN Co's ask must put 
the ACCC in a difficult position. 

So now is the time for the ACCC to stand up for consumers. No one else 
will. And that is why it exists as an independent statutory body. It has 
made its share of mistakes. Here's a chance for its new chairman to show 
it remains an institution well worth feeding.

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Cheers,
Stephen