Optus calls for NBN volume discounts

10.03.2011
Optus will push for NBN Co to be given the power to offer volume discounts to service providers on the National Broadband Network (NBN) under legislation currently in Senate Committees hearing.

Speaking at the Senate Committees into the , Optus government and corporate affairs director, Maha Krishnapillai, said the telco debated internally whether it was better to have an environment where no volume discounts were offered by NBN Co, but decided it was in its commercial interest to push for them.

"As the second largest player, we think there would be advantages, clearly, in us being able to say we are more efficient in terms of buying," he said.

"What we are trying to do is mirror normal commercial negotiations and commercial practices... which say that if you are helping the supplier in their costs to you -- effectively aiding efficiency -- then there should be some recognition for you of that in commercial discussions."

The decision comes despite concerns that offering volume discounts would undermine the level playing field which NBN Co, in its being the dominant wholesale provider of broadband carriage in Australia, would create.

In November, communications minister, Stephen Conroy, , that the current NBN legislation may allow NBN Co to offer special pricing to major players such as Telstra.