Functional separation works for broadband: UK communications regulator

Stan Beer
Sunday, 06 July 2008 12:28

Opinion and Analysis

So with Australia's trans-Tasman neighbour New Zealand, the UK, and possibly the whole of Europe moving to embrace an increased regulatory interventionist framework, with functional separation a key principle, the pressure is now on the Australian government to follow suit.

It is to be hoped that further dithering on this issue is not a hallmark of this government as it has been with its predecessors.

As is the case with any industry, true and fair competition on a level playing field in retail telecommunications has been a proven success in providing consumers with the ability to choose best possible products at the best possible price. Sadly, in Australia with a vertically integrated Telstra whose wholesale division favours its retail arms ahead of competitors, this is anything but the case.

It should not be left to the Australian Competition and Consumer Commission to continually issue competition notices to Telstra each time it is notified of an alleged breach of fair dealings with its retail customers.

The Australian government, if it wants to be remembered for achieving something positive instead of emitting greenhouse gases from mouths in Canberra, should take a lead from the UK and usher in the age of the functional separation of Telstra.