Regulator okays Optus exit from HFC network

The deal between nbn^TM and Optus has taken another step towards regulatory approval, with the Australian Competition and Consumer Commission (ACCC) issuing a draft decision to let the deal go ahead.

The two carriers have been waiting since December 2014 for the rubber-stamp.

The deal will progressively transfer elements of Optus' HFC network to nbn^TM, as the latter says “where it represents the fastest and most cost effective way to deliver fast broadband to families and businesses.”

Jumping the regulatory hurdle will help keep the network's HFC plans on track, with plans for trials late this year ahead of a commercial launch in 2016.

The transfer of HFC assets to nbn^TMwill also be happy news for Australia's communications minister Malcolm Turnbull, since it will quickly add a couple of million households to the network's footprint - with an election due in 2016.

Naturally, nbn^TM CEO Bill Morrow welcomed the draft approval, saying it's “a significant step” that lets the company “deliver better broadband to every Australian as soon possible and at the least possible cost.”

After initially saying it would be rolling DOCSIS 3.0, nbn^TM is going to make its HFC assets DOCSIS 3.1-capable, although it hasn't revealed when the gigabit-capable (download speed, dependent on contention) technology will be launched.

The ACCC's announcement says the regulator thinks the “balance of benefits and detriments” it had identified in first considering the deal in 2012 hadn't changed.

ACCC chair Rod Sims said: “The ACCC acknowledges the revised arrangements form part of a broader proposal for NBN Co to acquire Optus’ HFC network assets, and that utilising existing HFC infrastructure in rolling out the NBN is likely to generate cost savings”.

Those benefits include giving nbn^TM access to the fibre infrastructure in the network, giving consumers a choice of service providers, and offering a “less disruptive” customer migration to the NBN.

The ACCC will start a brief consultation process before issuing a final decision in August or September. ®