Minchin claims Conroy and Tanner at odds over Telstra break-up

Stuart Corner
Monday, 21 September 2009 09:58

Opinion and Analysis

Shadow communications minister Nick Minchin claims that communications minister Stephen Conroy and finance minister Lindsay Tanner are at odds over the government's determination to wrest the HFC network and Foxtel stake from Telstra's grip, but the rules are set out in black and white in the bills now before parliament. Or are they...

Minchin says there is now "a major split" between Conroy and Tanner "over whether Telstra should be forced to divest its interests in Foxtel under Labor's plans to break up the company."

According to Minchin "Mr Tanner told the Insiders program that the Keating Government made a 'significant mistake' allowing Telstra into Foxtel as in many other countries the main competitor to the fixed line network was cable television.' ... Tanner was then asked if he was confident he could separate the two. He responded: 'Oh absolutely'."
In contrast, says Minchin, "Senator Conroy told the Inside Business program that Telstra would be allowed to keep its Foxtel interests and the cable which delivers it "if we do receive an acceptable form of structural separation put forward by Telstra that the ACCC and myself tick off on".

Minchin seems to be clutching at straws when it comes to trying to nail the government. There is nothing inconsistent in Tanner's and Conroy's statements: either Telstra will have to put in place some form of structural separation so that its ownership of the HFC network and of 50 percent of Foxtel gives it no advantage in the market for services delivered over those network or it will be forced to divest those assets.

It is there in black and white in the legislation. "Telstra may give the following undertakings: (a) an undertaking about structural separation; (b) an undertaking about hybrid fibre-coaxial networks; an undertaking about subscription television broadcasting licences
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