Cabinet to consider future proofing and separation plans

Stuart Corner
Saturday, 10 September 2005 16:30

IT Policy - Regulation

According to the Financial Review, Federal Cabinet will tomorrow (Tuesday) consider a $3 billion package of telecoms investment and regulatory reform aimed at appeasing the National Party and Telstra's competitors. It would include $1 billion of government spending on rural broadband, a commitment to the National Party's proposed $2 billion Future-Proofing Fund and operational separation of Telstra into wholesale and retail arms.

Separately Telstra is lobbying for a government contribution of $2.6 billion to its $5.7 billion plan to improve broadband services. According to the AFR, which claims to have seen the plan, Telstra has proposed spending $3.1 billion to take broadband at 6Mbps to 87 percent of the population and wants the Government to tip in another $2.6 billion to provide services at a minimum of 1.5Mbps to the remaining 13 percent.