Optus sinks the boot in over Telstra delay proposal

Stan Beer
Friday, 09 October 2009 16:13

IT Policy - Government Tech Policy

Telstra rival Singtel Optus has taken the opportunity to launch a broadside at the incumbent fixed line carrier over its public submission to the Senate inquiry into regulatory reform, which urges the Senate to delay debate on the National Broadband Network until after the Government's implementation study is complete.

In its submission Telstra, in a thinly veiled criticism of the Government's proposed legislation for regulatory reforms, which is aimed at structural separation of Telstra's wholesale and retail arms, said it had no choice but to oppose the bill in its current form.

The market was apparently not impressed with the spectre of yet another Telstra stoush with the Government, punishing Telstra shares on the ASX, sending them down by 2.17%.

Never one to miss an opportunity to hop into a bash Telstra party, Singtel Optus tonight issued its own release slamming Telstra's stance.

Maha Krishnapillai, Optus Director of Government and Corporate Affairs said:

“Telstra has once again thumbed its nose at the Government by its complete rejection of every aspect of the proposed legislation.

“After repeatedly refusing to come to the table with its bluster and gamesmanship, Telstra now demands that the Government delays this historic reform process until after it has concluded discussions with Telstra.

“This is further testament to the fact that Telstra is only willing to sit down with the Government on its terms and to its timetable.

“The ‘new’ Telstra management has finally shown that there’s nothing ‘new’ about their approach to regulatory reform.

“The sense of entitlement is so deeply ingrained in Telstra’s DNA that the Government has been left with little choice but to implement the proposed legislation at the earliest opportunity for the sake of our industry, consumers and the national interest.”

On Telstra’s proposed functional separation, Singtel Optus stated:

“Telstra’s amendments to the Government’s functional separation proposal will lead to separation in name only.

“They would ensure that Telstra’s retail units continue to get preferential treatment from its wholesale division and leave the rest of the industry out to dry.

“Critically, if Telstra has its way, many Australian consumers will continue to be denied a choice of supplier for their voice and broadband services.”