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Structural separation: on the cards or not?
Cornered!
Structural separation: on the cards or not? | Structural separation: on the cards or not? |
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| by Stuart Corner | |
| Thursday, 04 June 2009 | |
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Page 2 of 2 Then, crucially, only two options are listed: "Option 1—Strengthening the current operational separation regime that applies to Telstra," and "A further option open to Government would be to introduce a stronger form of separation, such as a functional separation regime similar to those introduced in the United Kingdom and New Zealand, and being considered as a regulatory remedy within the European Union," There is no mention of "legal" or "structural" separation.Featured Whitepaper
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There's no shortage of material in the discussion paper detailing the faults of the current system, and little to indicate how greater functional separation would solve these without adding even further weight to the heavy regulatory oversight that has so patently failed to achieve its goals to date. So it is not hard to interpret the paper as a sign that the government is heading at least towards legal separation. Is the Government perhaps unwilling to spell out the 'S' word but hoping that the regulatory reform process will lead to at least legal separation as the inevitable and only solution to the problems so clearly spelt out in the discussion paper? Perhaps it is hoping that the mere threat of legal or structural separation and a Telstra free NBN will persuade Telstra to take the initiative and start down the road to greater separation.
This article first appeared in ExchangeDaily, iTWire's daily newsletter for telecommunications professionals. Register here for your free trial.
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