FOXTEL today called on Terria to publicly clarify whether it is seeking a guaranteed monopoly over any new broadband network built in Australia.

"The trend in entertainment is towards providing consumers with what they want, where they want it and over the network of their choice. Forcing Australians to take all their services via one network would be a massive step backwards to failed approaches of the mid-20 century," said Mr Kim Williams, FOXTEL’s Chief Executive Officer.

FOXTEL is concerned that attempts to reduce the number of networks in Australia will reduce the nation’s ability to continue to evolve with a variety of providers giving consumers choice over when, where and over which network they receive their entertainment and communications services.

FOXTEL provides its channels over three terrestrial networks – Optus and Telstra’s HFC networks and Telstra’s Next G™ network and also via Optus Satellite separately. Many independent channels carried by FOXTEL separately provide services over the Telstra, Optus, Vodafone and 3 mobile networks.

Terria appears to want to take us backwards. Terria’s bid manager is quoted as saying,

"Our proposition to the Government is that no party be allowed to expand the network and operation in competition to the national broadband network … you must preclude any alternative broadband network"⁽¹⁾

"Terria’s approach looks dangerously close to a Big Brother style totalitarian solution and is hopelessly outmoded in responding to 21st century demands of a contemporary economy – one which needs less not more protection if it is effectively to meet the challenges presented in meeting future consumer and business needs" said Mr Williams.

"Terria's reported approach to re-monopolising network provision would be without precedent in developed countries around the world, where policy makers all recognise that infrastructure based competition drives competition, investment and innovation to the benefit of all consumers".

"Any attempt to re-monopolise the provision of communications services is bad for investment, innovation and, of course as history attests, consumers. All the micro-economic policy reforms of the last twenty years show that the economy and consumers benefit from healthy competition", Mr Williams added.

"It is important that Terria explains exactly what is meant by press statements attributed to the consortium. If Terria wins the bid, what will happen with existing networks such as the Optus and Telstra HFC networks and mobile networks which would all potentially compete with a new NBN network?

"FOXTEL knows from its experience of competing with a universally available free substitute product (the FTA channels), video rental stores, supermarkets that sell DVDs and TiVO, that competition always means that consumers receive better outcomes and that providers remain focussed on ensuring that they provide good services and value" said Mr Williams.

(1) The Australian, 9 September 2008
* This statement was first published as a FOXTEL media release.