Telstra's new guard: it's all about the customer

Stuart Corner
Friday, 08 May 2009 06:45

Opinion and Analysis

Relations with Government and regulation were, of course, all that the press wanted to talk about: the first question to Livingstone, was "Will you be less combative when it comes to dealing with the Federal Government than your predecessor?"

She promised "We are focussed on having a very constructive engagement with Government and we are working with various stakeholders in this process at multiple levels in the government," adding: "It is very important we have an open discussion with the Government and it is very important find what is best for Telstra and for Australia."

This could well prove to be an enormously  difficult challenge. Many would argue that what is best for Telstra is a more evenly balanced market which would mean a significant reduction in Telstra's market power, most likely by some form of structural separation. Should the government be determined to pursue this course, then what will be best for Telstra will likely be accept the inevitable and co-operate fully.

Asked specifically for Telstra's position on the proposed regulatory changes (outlined in the discussion paper released with the announcement of th $43b NBN plan) Thodey said: "we are looking to see what will be the best outcome for Telstra. There is a lot of detail and we will be going through that over the next few weeks and we will then be able to share more detail on it.

Thodey would not comment on speculation that Sol might depart before his scheduled date of 30 June but this seems likely: he said the two would be "sitting down and planning the transition over the next few days."

Not surprisingly Thodey ducked the direct question: "What do you think of your predecessor's strategy on the National Broadband Network. Did they get it wrong?" Sol, he said "has been a great leader," quickly adding "We are looking forward." So too is the entire industry, and hoping for better than the past four years of acrimony, false starts on failed policies on broadbanding Australia.