Telstra submits regulatory wish-list to government

Telstra will bow out of NBN if structural separation is enforced.

Telstra has submitted to the Federal government its proposal for what regulatory framework it believes is needed to meet Senator Conroy's vision of an open, competitive high speed national broadband network.

Under the tender process, a submission outlining regulatory framework for the NBN is required by all bidders, but is also open to non-bidders who wish to have a say in the regulatory framework of the new network.

The key component of Telstra's submission is a call for regulatory certainty, with an agreement on the terms of core wholesale access to the NBN to provide certainty for investors and wholesale customers and to attract the multi-billion dollar investment required to build the network.

Telstra has said that if the NBN is going to be built, the builder needs up-front certainty that its investment will not be undermined or given away by regulatory changes once a decision to invest is made.

Senior media relations manager for Telstra, Jeremy Mitchell, said that currently a lack of regulatory certainty, and the fact that regulatory settings have been designed for the old network, has led to a lack of investment because the ACCC has the power to change regulation and pricing at will.

"If you get certainty in the market for whoever wins it - Telstra or not - they are going to need that certainty because you are talking about billions of dollars of investment. The return on that capital will happen over years, even decades, so you need that certainty to know what rules will be in place and what will be happening as far as returns on that investment," Mitchell said.

Telstra also rejected claims that structural separation is essential in Australia and said it will remove itself from the build process if this occurs.

"This idea that our competitors are arguing for - the actual split of Telstra - is proven not to have worked overseas and if it is on the agenda we will not be a participant in the national broadband network," Mitchell said.

As part of its submission to the Federal government, Telstra submitted evidence from a number of independent international experts stating that a split of Telstra is unnecessary and would not work.

Kip Meek, former commissioner of the UK's independent telco regulator and competition authority, Ofcom, said the UK (British Telecom) form of structural separation was designed to address severe problems of non-price discrimination which he does not believe exists in Australia.

"I would not recommend that the UK form of separation be used as a starting point in the Australian context," Meek said.

"I am also of the view... that more radical measures, such as structural separation, would involve substantially escalated risk and costs. The demand risks and uncertainties associated with building a Next-Generation Network, especially where it is intended to replace the PSTN, seem to me to raise doubts about whether a non-vertically integrated approach would be able to achieve the necessary level of investment co-ordination."

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Andrew Hendry

Computerworld

Comments

Comments are now closed.

Latest News Articles

Most Popular Articles

Follow Us

GGG Evaluation Team

Kathy Cassidy

STYLISTIC Q702

First impression on unpacking the Q702 test unit was the solid feel and clean, minimalist styling.

Anthony Grifoni

STYLISTIC Q572

For work use, Microsoft Word and Excel programs pre-installed on the device are adequate for preparing short documents.

Steph Mundell

LIFEBOOK UH574

The Fujitsu LifeBook UH574 allowed for great mobility without being obnoxiously heavy or clunky. Its twelve hours of battery life did not disappoint.

Andrew Mitsi

STYLISTIC Q702

The screen was particularly good. It is bright and visible from most angles, however heat is an issue, particularly around the Windows button on the front, and on the back where the battery housing is located.

Simon Harriott

STYLISTIC Q702

My first impression after unboxing the Q702 is that it is a nice looking unit. Styling is somewhat minimalist but very effective. The tablet part, once detached, has a nice weight, and no buttons or switches are located in awkward or intrusive positions.

Resources

Best Deals on GoodGearGuide

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?