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."

Join the newsletter!

Error: Please check your email address.
Rocket to Success - Your 10 Tips for Smarter ERP System Selection
Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Andrew Hendry

Computerworld
Show Comments

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Ben Ramsden

Sharp PN-40TC1 Huddle Board

Brainstorming, innovation, problem solving, and negotiation have all become much more productive and valuable if people can easily collaborate in real time with minimal friction.

Sarah Ieroianni

Brother QL-820NWB Professional Label Printer

The print quality also does not disappoint, it’s clear, bold, doesn’t smudge and the text is perfectly sized.

Ratchada Dunn

Sharp PN-40TC1 Huddle Board

The Huddle Board’s built in program; Sharp Touch Viewing software allows us to easily manipulate and edit our documents (jpegs and PDFs) all at the same time on the dashboard.

George Khoury

Sharp PN-40TC1 Huddle Board

The biggest perks for me would be that it comes with easy to use and comprehensive programs that make the collaboration process a whole lot more intuitive and organic

David Coyle

Brother PocketJet PJ-773 A4 Portable Thermal Printer

I rate the printer as a 5 out of 5 stars as it has been able to fit seamlessly into my busy and mobile lifestyle.

Kurt Hegetschweiler

Brother PocketJet PJ-773 A4 Portable Thermal Printer

It’s perfect for mobile workers. Just take it out — it’s small enough to sit anywhere — turn it on, load a sheet of paper, and start printing.

Featured Content

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?