No relief: no new network says Telstra

Stuart Corner
Friday, 02 December 2005 08:53

IT Policy - Regulation

Telstra has stated categorically that it will not invest to upgrade its access network unless it obtains relief from access regulations.

At an investor briefing in Sydney, group managing director, public policy and communications, Phil Burgess, said Telstra would be seeking legislative reforms before proceeding with the network upgrade. He said existing laws designed to give companies certainty before going ahead with major new investments were inadequate because the processes were slow and cumbersome, with decisions subject to challenges that would delay Telstra's plans by at least two years.

The company also sought to involve all its shareholders in the decision, suggesting that they would be asked to give their assent to the project. Burgess said: "If Telstra's 1.6 million Australian shareholders are being asked to build the new network, then they shouldn't be forced to hand it over to our competitors. You can't ask Telstra shareholders to invest in a new broadband network, and then allow competitors to pay none of the cost but still enjoy the same benefits." Burgess said.

However there has been no suggestion of any call on shareholders to fund the network nor of putting the decision to a vote of shareholders.

Telstra is calling for the immediate introduction of: an average ULL price of $30; limiting operational separation requirements to existing wholesale core services and exempting new services from mandated 3rd party access.