Telstra competitors worried about access while NBN being built

Stan Beer
Friday, 29 July 2011 11:44

IT Policy - Government Tech Policy

The Competitive Carriers' Coalition (CCC), which represents Telstra's competitors in Australia, has hit out at the dominant carrier for not revealing its plans to structurally separate in preparation for the incoming National Broadband Network.

The CCC is concerned that until the NBN reaches significant penetration, which is expected to be at least five years away, it will be business as usual where Telstra uses its dominant market position to deny competitors equivalent access to its wholesale network.

Telstra's lack of contact with competitors to discuss how it plans to deal with its obligation to better meet their needs was difficult to understand and did not auger well for the chances of its detailed separation plan being well received, the CCC said today.

Telstra is expected any day to lodge with the Australian Consumer and Competition Commission its so called structural separation undertaking.

A core element of this document has to be a detailed plan to show how Telstra will provide competitors with equivalent access to its monopoly network during the period when the National Broadband Network is being built.

'Telstra's systematic and persistent misuse of its market power has made it difficult for competitors to exercise their legal rights to use these assets over the past two decades,' a CCC spokesperson said.

'This has ultimately left Australian consumers hugely disadvantaged compared to the citizens of other advanced countries and was one of the main reasons for the Government's radical overhaul of the telecommunications sector.

'These reforms were intended to fundamentally and permanently change relationships and practices across the industry.

'However, Telstra has had no contact with competitors nor, apparently, with consumer representatives to 'road test' its ideas as to how it will fix these longstanding problems,' a CCC spokesperson added.

'In the light of Telstra's consistent track record of seeking to exploit its market power to advantage itself, this does not inspire confidence that competitors or consumers will be made an acceptable offer by Telstra.'

The CCC, while hoping that the undertaking will yet meet the required standard, said that in the absence of consultation so far, Telstra would need to be open minded to the feedback of competitors and consumers when it does release its document, and take on board necessary amendments.

'We strongly urge the ACCC to be firm in setting a standard that can finally deliver real internationally comparable standards of competition for consumers, and urge the Government to encourage and support a strong line from the ACCC,' a CCC spokesperson said.

'Yet another failure to implement real reform would not only mean Australia remains an international competition joke for another decade, but would create a serious problem for the NBN, which requires robust and lively retail competition to deliver affordable broadband to consumers.'