Telstra urges Senate to delay NBN debate

James Riley
Friday, 09 October 2009 08:54

IT Policy - Government Tech Policy

"The failure of the private sector to invest in fixed high-speed broadband infrastructure is in part a function of the cost of deploying optical fibre in a country like Australia, with such a large land mass and relatively small population.

"However, it is also a function of the significant investment uncertainty created by the current regulatory regime."

On structural separation – the crux of the Telstra negotiations with Government – the company restated its position that it cannot support proposals that would diminish shareholder value

And on the threat to deny Telstra access to new spectrum, Telstra says the Government would reduce competition and hurt consumers, without achieving any progress toward the nation’s NBN goals.

"Denying Telstra access to spectrum will undoubtedly hurt consumers, particularly those in rural and remote Australia, by depriving them of an upgrade path with reduced competition and innovation," the Telstra submission said.

And on Government's proposal that Telstra be forced to divest its Foxtel assets and HFC cable, the company said nothing would be achieved except raising questions of sovereign risk – reducing the attractiveness of Australia as an investment destination.

"Telstra’s shareholders have invested significant sums in these assets. To require them to divest their interests in these assets just as they are becoming profitable is unjust and raises questions of sovereign risk," it said.

"There is no consumer or competition benefit from requiring Telstra to sell these assets.
Denying Telstra access to spectrum would also do nothing to achieve the NBN."