The Productivity Commission has released the results of a six month investigation into the National Broadband Network Co (NBN Co), finding that the company is dangerously close to breaching competitive neutrality rules.

 

However, the report has found that the NBN Co becoming the last resort provider for housing estates of more than 100 premises is not anti-competitive, despite a number of complaints from providers.

 

"NBN Co's decision to be an alternative provider of fibre in greenfield developments (rather than only the provider of last resort) is not dependent on a competitive advantage by virtue of its government ownership, and is not a breach of competitive neutrality policy," the commission said.

 

"NBN Co's use of its profile to promote itself to the development industry as a provider of fibre to the home in greenfield developments is an operational decision, and is not a breach of competitive neutrality policy."

 

 

However, the Commission has found that the NBN has set an unrealistic rate of return goal of 7 per cent, finding that inherent risk in the market means the goal does not represent an accurate commercial rate of return.