Telstra tears Terria a new one over NBN monopoly revelation

By Alex Zaharov-Reutt
Tuesday, 09 September 2008 14:06

Strategy

Telstra has accused its National Broadband Network rival, Terria, of wanting what Terria accused Telstra of deeply desiring: a monopoly. Should we inform the Parker Bros?

It’s a game of broadband real estate madness gone, well... mad.

Telstra, long accused of being the 800 pound monopoly gorilla of Australia, and wanting to re-establish that monopoly through an exclusive contract to build the National Broadband Network, has torn a hole in Terria’s previous competitive claims.

Telstra has quoted Terria's bid manager, Mr Michael Simmons, from an article in today’s “The Australian” newspaper, saying: “Our proposition to the Government is that no party be allowed to expand the network and operate in competition to the national broadband network ... you must preclude any alternative broadband network.”

Telstra then says that “Australian businesses and consumers would be the big losers under a Terria-built National Broadband Network, after its shock revelation today it would demand a guaranteed monopoly.”

David Quilty, the Group MD for Telstra Public Policy and Communications and the new “Dr Phil”, said “Terria's stunning demands showed it wanted to take Australia back to the last century and re-monopolise the nation's telecommunications industry, depriving Australians the choice and innovation produced by true infrastructure competition.”

Quoth Quilty: "While Terria crows about fairness and encouraging competition it is really the monopolist hiding in the shadows.”

Although Terria would no doubt have critically branded Telstra as the hypocritical party in the past (and probably still today), Quilty quiverlessly states that: “the comments from Mr Simmons were blatantly hypocritical and risked making Australia an international laughing stock.

"For months Terria has been claiming that Telstra wants a monopoly and that Terria is committed to competition. Today Mr Simmons has revealed that Terria's bid relies on the Government granting it a guaranteed monopoly.

Quilty’s quotes quickly continue on page 2...