Euphoric welcome for new telecoms legislation

Stuart Corner
Tuesday, 15 September 2009 12:02

IT Industry - Strategy

Much of the telecoms industry - individual companies and organisations - has greeted the government's proposed new telecommunications rapturously, saying it addresses most of the concerns they have been airing for years and will give the industry a major boost.

Commenting on the proposed changes to the access regime, David Forman, executive director of the Competitive Carriers' Coalition, told iTWire: "What was a seven year process [from an access seeker entering into negotiations with Telstra, to lodging an access dispute with the ACCC and having resolved] will become a six month process. That in itself is massive. It's a real game changer."

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.)

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