Legislation "unnecessary" says Telstra, and the Opposition agrees

Stuart Corner
Tuesday, 15 September 2009 10:41

IT Industry - Strategy

Telstra says the government's proposed legislation putting it under intense pressure to structurally separate is unnecessary given that Telstra is actively discussing its involvement in the National Broadband Network.

CEO David Thodey said: "While we are disappointed the Government has felt it necessary to introduce this legislation, Telstra remains committed to working with the Government to find a solution that is in the best interests of the industry, the nation, Telstra and our shareholders."

He pointed out that Telstra had been making a concerted effort to discuss its possible role in the NBN. "The NBN has been given the strongest possible board and management focus, including the establishment of a dedicated Board sub-committee, chaired by the chairman of the board, Ms Catherine Livingstone, and an NBN engagement team led by group managing director Mr Geoff Booth. Telstra has done a large amount of work to ensure we have the best possible understanding of the complex and challenging issues around separation and NBN."

He added: "Telstra supports the Government's NBN vision. We are willing to discuss options around separation. Telstra will carefully examine the package [of legislation] over the coming days...[However] at all times, our approach to regulatory reform and the NBN will continue to be driven first and foremost by the need to protect the interests of our shareholders."

Shadow communications minster, Nick Minchin, said: "Now that Telstra managing director, David Thodey, has brought a new spirit of consensus and cooperation to the leadership of that company, the Government should be working with him, not holding a gun at his head."

He added: "The Government has given no adequate explanation for this radical change of policy [to push for the break up of Telstra] or any analysis of the likely impact on Telstra's nine million customers, 1.4 million shareholders or 30,000 employees. Nor has the Government explained why it needs to take the radical step of forcing the break-up of Telstra, when it is proposing to spend $43 billion building a wholesale only optical fibre network to compete with Telstra."