Telstra uses ALP broadband plan for another swipe at ACCC

Stuart Corner
Wednesday, 21 March 2007 15:15

IT Policy - Regulation

Telstra has used the ALP's announcement of is $4.7 billion broadband plan  to take another swipe a the ACCC.

Telstra's group managing director of public policy and communication, Phil Burgess, said that Telstra welcomed the news that "a Rudd Government would take broadband policy leadership away from the unelected regulator and return it to the elected representatives, where it belongs."

This may not have been a wise move: an ALP Government would inevitably rely heavily on the ACCC in putting in place the regulatory reforms it envisages would be required as part of the plan, and Telstra will have to work with the ACCC.

"Telstra agrees with Senator Conroy that regulatory reform is urgently needed to facilitate the rollout of a high-speed FTTN broadband network," Burgess added. "Telstra will continue to work constructively to achieve these reforms."

"Today Senator Conroy made clear that the ALP is prepared to do what is necessary to ensure Australia has a globally competitive broadband infrastructure, including removing the regulatory roadblocks to investment in a national FTTN network. Telstra supports this important national objective," Burgess said.

Also in Burgess's sights was the G9 proposal: "We note the ALP proposes to establish a process to assess private sector proposals to build a FTTN, including the G9.  In Telstra's view, the G9's proposal is fatally compromised on legal, technical and policy grounds. It involves confiscation of Telstra's network assets which have been bought and paid for by 1.6 million mum and dad investors. Further, it would lock Australia into an already outdated and much slower technology under the cover of a 20 year statutory monopoly."

However he was quite keen that Telstra should have the opportunity to build a similarly monopolistic network. "Telstra agrees with Senator Conroy that an FTTN network should be built as soon as possible. Telstra stands ready to invest in a world-class FTTN network if the regulatory climate provides certainty and enables its shareholders to achieve a competitive return on their capital."