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Telecommunications Euphoric welcome for new telecoms legislation
Telecommunications Euphoric welcome for new telecoms legislation | Euphoric welcome for new telecoms legislation |
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| by Stuart Corner | |
| Tuesday, 15 September 2009 | |
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Forman said the proposed changes addressed almost everything on the regulatory 'wish list' of Telstra's competitors. "I don't think anything has been missed out. And they have knitted it together quite cleverly. The linkage of the three business areas [of Telstra] that need to be divested before they can acquire more spectrum really says to Telstra 'It is up to you guys how big you think that [fixed line] business is and how big you think the future [wireless] business is. You can keep the copper, keep the HFC and Foxtel, but say goodbye to wireless'." Forman added that he believed that Telstra would voluntarily divest its copper rather than be forced into functional separation. "Based on Conroy's confidence [at the announcement] this morning he seemed to be very comfortable that Telstra do a deal with him and get rid of the copper." He added: "Even if they do not structurally separate, functional separation coupled with the other regulatory measures would transform the environment for competitors." Maha Krishnapillai, director of government and corporate affairs at Optus (who himself has been involved in telecoms regulation for two decades) described the legislation as "the biggest piece of reform undertaken in this sector in 20 years." (This puts it ahead of moves to introduce a second fixed line carrier and two competing mobile carriers in 1991, and ahead of plans to open the market for full competition in 1997.) CONTINUED
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