Telstra reforms will proceed this year: Conroy

James Riley
Friday, 09 October 2009 11:10

IT Policy - Government Tech Policy

The Rudd Government remains committed to having its telecommunications regulations passed this year, despite calls from Telstra to delay debate on the issue until Australia's largest carrier had completed its negotiations with authorities over the proposed changes.

A spokesman for Communications Minister Stephen Conroy said the Senate committee investigating the reforms was due to report later this month and Government intended to keep its timetable of getting legislation through this year.

In a submission to the Senate Environment, Communications and the Arts committee earlier today, Telstra outlined its opposition to the reform Bill as it is currently written, and urged the Senate to delay debating the bill until the company had completed its negotiation, and the Government has completed its NBN implementation study.

The crux of the reforms would see the structural separation of Telstra into separate wholesale and retail arms, as well as the divestiture of its Foxtel Pay TV assets.

Senator Conroy's office said the reforms would deliver better competition, better services and lower costs to consumers – and says its offers to Telstra are in the interests of shareholders.

"It is the Government's clear desire for Telstra to structurally separate on a voluntary and cooperative basis," the spokesman said.

"Telstra has a duty to act in the interests of its shareholders and the leadership team has given every indication that it intends to do so. However, the Government must act in the national interest, we are in positive discussions with Telstra and are confident that we can achieve a win-win outcome for shareholders and the Australian public."

Opposition communications spokesman Nick Minchin said there was no reason to rush the “planned radical telecommunications reforms” through the Parliament, supporting Telstra’s suggestion to shelve the bill until after the completion of the NBN implementation study.

"While Labor claims these reforms are all about enhancing competition and delivering better outcomes for consumers, in its submission Telstra puts forward quite a compelling argument that the Bill as it stands would in fact reduce competition, harm consumers and destroy shareholder value," Senator Minchin said.

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