Optus calls for NBN volume discounts

10.03.2011

Optus' Krishnapillai added that despite the telco's desire for volume discounts from NBN Co, it was difficult to gauge what volumes of carriage would be needed to justify such a discount.

"That is the real difficulty as I don't know that volume per se should be criterion or effectively some kind of discount," he said. "The key [criterion in the bill] is how you define 'aiding efficiency'.

There is no definition around that so I don't know that there is a number [for a volume discount]."

Optus interconnect and economic regulation general manager, Andrew Sheridan, said for volume discounts to apply, NBN Co would need to demonstrate that at a certain volume of carriage the economics of supply changed.

"It is not reasonable to say that if we had several times the volume of company X we should get a discount of X per cent," he said.