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VIRTUALISATION Break up Telstra and force it out of Foxtel, says Optus
VIRTUALISATION Break up Telstra and force it out of Foxtel, says Optus | Break up Telstra and force it out of Foxtel, says Optus |
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| by Stuart Corner | |
| Wednesday, 03 June 2009 | |
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Certainly Optus was pulling no punches when it announced its submission. Maha Krishnapillai, Optus' director of government and corporate affairs said: "[Telstra] routinely discriminates against [wholesale] customers." - discrimination whch is prohibited by regulations. He continued: "Telstra is able to do this because of an ineffective regulatory regime, a regime which Telstra has manipulated and abused in its quest to undermine competition and continue its stranglehold on the Australian consumer." In summary, Optus says: "Telstra should be required to establish a separate Access Service Company (ASC) – that is structurally and functionally separated from its Retail Businesses. It should be owned and operated as an independent entity from the current Telstra Retail businesses with its own board and management team. This company should hold the current fixed line network assets and provide services to all access seekers (including Telstra Retail). Such an entity could be created by giving existing Telstra shareholders two shares for each share they hold today; one to be held in the ASC; and one to be held in the Retail entity." In addition, Optus is calling for a wide ranging review of the regulatory regime administered by the ACCC to remedy the shortcomings of the current regime that it says "have resulted in a dysfunctional market structure and a regulatory system that is mired in litigation."
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