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The stick is regulation, and the carrot is money. Unfortunately, it's really hard to do once the govt. money is spent. I'm familiar with AU/NZ. Both are pumpin
by xyzzy123 14y ago
The stick is regulation, and the carrot is money.
Unfortunately, it's really hard to do once the govt. money is spent. I'm familiar with AU/NZ. Both are pumping significant public money into broadband infrastructure, and they took different approaches to enforcing fair network access.
In AU, they created a new company (NBN co) to run the "utility" part. See: http://whirlpool.net.au/wiki/nbn http://whirlpool.net.au/wiki/nbn
The government is paying the monopoly incumbent to switch users onto the new network.
In NZ, our privately owned largest telco (Telecom NZ) semi-voluntarily split itself into two parts - a retail and a wholesale branch. The shareholders agreed to do this, because that meant the wholesale part (Chorus) would get a big govt. contract to lay fiber to the door.
In theory, the split is "arms length", so other network providers can access the infrastructure on fair terms.
Reference: http://www.stuff.co.nz/business/industries/5858284/Telecom-split-first-in-world http://www.stuff.co.nz/business/industries/5858284/Telecom-s...
It remains to be seen whether this is the right way to go about things, but both approaches do seem plausible.