Telstra v ACCC: now it gets personal

Stuart Corner
Monday, 07 November 2005 16:34

IT Policy - Regulation

The battle between Telstra and the ACCC over the ACCC proposed pricing for the unbundled local loop services (ULLS) has reached new heights of intensity, with Telstra's chairman, Donald McGauchie launching a very public and very personal attack on ACCC chairman, Graeme Samuel.

The latest round in the long running saga started when Telstra's CFO, John Stanhope, wrote to Samuel following comments Samuel had made last Monday, 31 October in a Senate Estimates Committee hearing. That letter was lodged with the ASX as was Samuel's reply

Now Stanhope has responded with a very detailed account of how Telstra believes it will be adversely impacted by the ACCC's proposed ULL pricing, but his letter has been sent, and made public, prefaced by one from Telstra chairman Donald McGauchie in which he accuses Samuel of "lack of due process and objectivity" and in which he describes Samuel's response to Stanhope's initial letter as being "what could best be described as a diatribe of sarcasm derision, and ridicule towards [Telstra's position].

He goes on to suggest that Samuel's conduct is unethical and a dereliction of his duties.

"We do not understand how an independent competition policy regulator, with a legal and ethical duty to discharge his/her duties objectively and dispassionately can behave in such a fashion to any company in any industry irrespective of its size, market share and whether or not he/she agrees with its views. Telstra, like any other company in Australia is entitled to due process and fair and objective treatment in its dealings with the ACCC.

"Based on the attitude demonstrated in your letter which was written in your capacity as chairman of the Commission it is impossible to believe that Telstra is receiving or will receive the impartial and considered treatment to which it is entitled."

McGauchie closes by saying in will be raising his concerns "with the relevant ministers as soon as I can".

His comments, and his move to raise his concerns with ministers elevate the issue to an entirely new plane: no longer is the battle confined to an attack on the merits of the ACCC's ULL pricing proposals and the rationale behind how they have been achieved. McGauchie is launching a direct attack on Samuel and his right to hold the top job at the ACCC.