No. 1 Story
ACCC clears Optus to scrap HFC network and use NBN instead
The ACCC has cleared, provisionally, the proposed deal between Optus and NBN Co under which Optus is to be paid around $800m to shut down its HFC network and transfer customers onto the NBN. read moreMore From
Minchin claims Conroy and Tanner at odds over Telstra break-up
Stuart Corner
Monday, 21 September 2009 09:58
Page 2 of 2
"An undertaking comes into force when it is accepted by the ACCC. Telstra will not be allowed to supply services using a designated part of the spectrum unless all three undertakings given by Telstra are in force.So there you have it. At the end of the day whether Telstra has to get rid of its HFC networks and its Foxtel stake comes down to a ministerial judgement; a judgement which is, presumably appealable by Telstra if it disagrees and moreover a judgement likely to be very hard to quantify.
For one thing, many have concerns about Telstra's market power that go beyond its vertical integration. As the former monopoly and by far the largest telco it enjoys economies of scale, levels of brand awareness, size of customer base, high street presence and breadth and depth of retail product portfolio that will continue to give it huge advantages even if an effective wholesale + network/retail split is implemented.
In other words, if the minister is determined to force divestiture of HFC and Foxtel on Telstra, he can probably do it. Note that, in contrast, Telstra's access to spectrum is dependent only on the separation undertaking being acceptable to the ACCC, not on ministerial judgement as to whether or not it is "sufficient to address concerns about the degree of Telstra's power in telecommunications markets."
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