Transcript: Stephen Conroy's opening address to media

Staff Writers
Tuesday, 15 September 2009 14:22

IT Industry - Market

Many countries restrict incumbents from owning both cable and traditional fixed-line telephone networks.

Moreover, in a range of countries, the fixed-line incumbent does not also own the largest mobile carrier, as is the case in Australia.

The Government intends to correct Australia’s unique and highly integrated market structure by preventing Telstra from acquiring additional spectrum for advanced mobile services unless it structurally separates, divests its HFC cable network and divests its interests in Foxtel.

The legislation provides scope to remove either or both of the cable network and Foxtel requirements if Telstra submits an acceptable undertaking to structurally separate.

The measures will promote competition across the different delivery platforms while providing Telstra with the flexibility to choose its future path.

The Government’s clear preference is for Telstra to submit an undertaking to voluntarily structurally separate that is acceptable to the ACCC.

The Minister will provide guidance to the ACCC to assist its assessment of these matters.

Importantly, the Government retains an open mind on how structural separation may be achieved.

For example, it may involve the creation of a new company into which Telstra could transfer some of its fixed-line assets.

Alternatively, it may involve Telstra progressively migrating its fixed-line traffic to the NBN over a period of time and under set regulatory arrangements, and for it to sell or cease to use its fixed-line assets on an agreed basis.

This approach will ultimately lead to full structural separation over time.

Such a negotiated outcome would be consistent with the wholesale-only, open access market structure to be delivered through the National Broadband Network.

The Government has commenced constructive discussions with Telstra on how NBN Co and Telstra could work collaboratively towards the NBN.

And I want to congratulate the new leadership at Telstra, Catherine Livingstone and David Thodey, for the very constructive way they have approached these discussions.

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