Turnbull claims NBN killing broadband competition

Shadow communications minister, Malcolm Turnbull, has claimed recently that the National Broadband Network could kill broadband competition as demonstrated by the iiNet buyout of Internode.

Shadow Communications Minister, Malcolm Turnbull, has never been afraid to express his opinion over the Labor government’s National Broadband Network, and he has recently expressed his concerns about how the NBN could kill broadband competition in Australia, as demonstrated by the recent iiNet acquisition of rival broadband provider Internode.

iiNet recently revealed that it was spending $105 AUD on the acquisition of Internode, which will make iiNet the third largest fixed broadband provider in Australia and will result in a further reduction in the number of Internet Service Providers in Australia. iiNet has made a number of other broadband company acquisitions over recent years, such as AAPT and Netspace.

Following the announcement of the acquisition Mr Turnbull said that this was a clear demonstration of the effect that the NBN policy was having on broadband competition across the nation.

He stated: “Labor claims the NBN will provide a level playing field and enhance competition, but this merger confirms it will diminish competition – not just at the infrastructure level, but among service providers too. The NBN’s vast expense is the reason it is pricing small, innovative internet and phone companies out of the market. Senator Conroy’s plan will reduce consumer choice, and ultimately increase prices for broadband users.”