Telstra attacks regulatory regime - again

Stuart Corner
Monday, 17 October 2005 18:41

IT Policy - Regulation

Telstra's general manager, regulatory affairs, Tony Warren has made wide-ranging criticisms of the telecoms regulatory regime, in an address to key regulatory forum.

In an address to the Australian Centre of Regulatory Economics' (ACORE) Annual Forum, on October 17, Warren claimed that: "The current system is unsustainable. You cannot have a competitive market, privately owned firms and such systematic asymmetric regulation."

His attack follows one last week by the head of Telstra Country Wide, Doug Campbell, in and address to the Country Press Club where, he said: "Australia is facing critical competition policy decisions and we are encumbered by 1990-type regulations when taking decisions on major new investments for the 21st century. What we instead desperately need are new policies and new regulations for the new investment necessary for this new century."

According to Warren, telecommunications regulation in Australia has been distorted for the last decade or more by the politics of Telstra privatisation. "Every time a tranche of Telstra has come up for sale the price that certain parties have asked for their acquiescence has been more obligations on Telstra and more powers for the regulators. In this process good regulatory principles like competitive neutrality are easily overlooked."

This is not entirely true: major changes to the telecommunications sections of the Trade Practices Act were introduced in 2002 simply because it became evident that the current provisions were not adequate to deal with competition issues.

Warren offered no solutions, saying only: "it's important as we move into the next phase of Telstra moving to private ownership that we raise the issue and get the discussion underway - it's certainly in the interests of both our customers and shareholders."