Telecommunications giant Telstra Ltd is preparing an alternative plan should it be unable to strike a deal with the Natioanl Broadband Network (NBN) within the next few weeks, involving an upgraded cable broadband network for millions of subscribers, according to The Australian newspaper.
According to the newspaper, Telstra has well advanced plans to upgrade its cable network to speeds of up to 100 megabits per second, as it currently offers in Melbourne, for homes in Sydney, Brisbane, Adelaide and Perth.
The demand for the service in Melbourne is low, but Telstra plans to cut its prices significantly to gain a foothold in the market before the NBN is rolled out.
The telco will also separate the service from the Foxtel premium service customers are currently required to sign up to in order to get the speeds
The Australian also reports that the federal government may introduce a levy on Tesltra and other telcos should they choose to compete with the NBN and build their own fibre networks.
The levy is one of the 84 recommendations made in the NBN implementation study by McKinsey & Company and KPMG, which also advises the extension of fibre coverage to 93 per cent of the population, from 90 per cent under the government's plan.
The report warns that a vertically integrated company could pick the most attractive areas in the country and deploy its own network there, reducing the viability of the NBN as well as competition.
"The simplest disincentive against cherry-picking would be to impose a levy on cherry-pickers, payable to the government, with proceeds to be directed towards telecommunications subsidy programs," the report says.
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