Telstra wants fast passage of telco reforms

James Riley
Wednesday, 20 October 2010 14:01

IT Policy - Regulation

Telstra has called for the swift passage of telecommunications reforms introduced to Parliament today, legislation that includes provisions for the structural separation of the company.

The Telecommunications Legislation Amendment (Competition and Consumer Safeguards) Bill also includes the regulatory framework that underpins the National Broadband Network.

Telstra chief executive officer David Thodey said the interests of shareholders were best served  if the bill were passed this year, because it secured arrangements for the deal currently being negotiated between Telstra and the NBN Company.

While Telstra signed a Heads of Agreement with NBN Co prior to the election, a definitive agreement that would see Telstra become the NBN Co's largest customer cannot be reached until the legislative safeguards are in place.

"On balance we support the passage of the Bill," Mr Thodey said.

"We also strongly recommend that consideration be given to further amendments that guarantee appropriate checks on regulatory decision making and bring telecommunications into line with other industries," he said.

"We believe the interests of Telstra shareholders would be best served by the Bill being passed this year so that a definitive agreement on our involvement in the NBN can be reached quickly."

Prime Minister Julia Gillard said the bill, which has been stalled in the parliament since last year, had been reintroduced so Government can get on with building the National Broadband Network.

"We seek expeditious passage of this legislation because every day it is delayed '¦ is a day of higher prices and less services for Australians, particularly Australians in regional areas," Ms Gillard told Question Time in the House.

She accused Opposition leader Tony Abbott and shadow communications minister Malcolm Turnbull of trying to delay the NBN through their calls for a seven month Productivity Commission cost benefit analysis of the project.

Treasurer Wayne Swan said Australia currently lagged behind 26 other OECD countries on broadband speed. He said regional Australians stood to benefit most from the project and said the Opposition was trying to delay its roll-out.

"Regional Australians absolutely understand the importance of super-fast broadband. They understand the importance of being connected to the national economy. They understand the importance of being connected to the international economy," Mr Swan said.

"What we are going to see now '¦ are delaying tactics for this initiative which will build our economy for the future, drive our economy, drive our competitiveness and give us the prosperity that we al seek," he said.