Telstra fronts Senate committee, crossbench waits

James Riley
Tuesday, 13 October 2009 08:27

IT Policy - Government Tech Policy

Telstra has again urged to senators to delay debate on the telecommunications reform bill, this time appealing directly to a committee hearing on the proposed legislation.

Appearing at a Senate communications committee hearing in Melbourne today, Telstra group managing director Geoff Booth restated the two clear messages contained in the company’s submission to the inquiry: It supports the "NBN vision" and opposes the reform legislation in its current form.

"If the Government decides to proceed with the Bill, we believe that it is only sensible that the Senate defer debate until after the conclusion of the constructive discussions between Telstra and the Government over the NBN and the completion of the Government’s NBN Implementation Study," Booth said in his opening statement.

"We would also urge that significant amendments are made to the Bill."

Booth said the company was continuing its ongoing negotiation with Government to find a "mutually beneficial solution" to the possible structural separation of the company between retail and wholesale units. But it is by no means certain those discussions – which have been taking place for some months behind closed doors – will have a successful outcome.

It is still not clear where the numbers fall in relation to the bill. If the Greens vote with the Government, as seems likely, the Nationals line up with their Coalition partners, it gets down to the cross bench – and senators Steve Fielding and Nick Xenophon have still not publicly stated their position on the telecommunications reform bill.

Senator Xenophon has asked for clarification from Government about why it's important that the legislation pass this year. And Senator Fielding has scheduled meetings with both Communications Minister Stephen Conroy and his Opposition shadow Nick Minchin to discuss the vote.

A Telstra spokesman told iTWire the company hoped the proposed changes would be delayed to maximise the chances of a successful negotiation.

Others in the industry are nonplussed by Telstra's calls for Senate delays. Competitive Carriers Coalition executive director David Forman says the industry reforms are long overdue, and have nothing to do with the construction of the National Broadband Network.

The CCC appears before the committee with it resumes hearings in Canberra tomorrow.

Telstra told the committee the proposed legislation was unnecessary, could harm competition in some areas, and hurt customers – particularly mobile users in regional Australia.

"We strongly believe that the way to realise a mutually acceptable outcome on the NBN is via commercial negotiations, not via legislation," Booth told the committee.

"While Telstra opposes the Bill in its current form, Telstra intends to continue its constructive discussions with the Government on the NBN," he said.

“We are absolutely genuine in our desire to find a mutually beneficial outcome that is in the best interests of our shareholders, our customers, our staff and the nation.”