Telco/ISP

Telstra pleads its case with independents

"A modicum of public scrutiny of Conroy's antics and the wolfpack bays!! Afraid of the light, boys? All negotiations between Telstra and NBNCo/AusGov are SECRET (at Conroy's insistence) till after ..."

By mick09

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By Brett Winterford

Oct 20, 2009 12:35 PM

Xenophon and Fielding lobbied as Coalition moves to block Telstra split.

Executives from Telstra met with Senators Nick Xenophon and Steven Fielding yesterday in an attempt to convince the two independents to swing their crucial votes to the Coalition on a bill aimed at forcing the structural or functional separation of Telstra.

The Coalition - which remains fractured on legislation such as climate change - has today officially united behind a plan by Shadow Communications Minister Nick Minchin to block the Government's Telecommunications Legislation Amendment (Competition and Consumer Safeguards) Bill.

The Bill, announced by Senator Stephen Conroy in September, threatens to deny Telstra access to future mobile spectrum for 4G services unless it splits its wholesale and retail assets or sells off its investments in HFC Cable or Pay-TV operator Foxtel.

Senator Minchin today gained an official endorsement from both the Shadow Cabinet and the party room to take a united stance that promotes deferring the legislation until after the implementation study into the NBN is finalised.

Minchin released a statement saying that "starving Telstra of mobile broadband spectrum amounts to an abuse of Government power against a company" that operates a mobile network "in a highly competitive market."

Coalition members have expressed "outrage" at the legislation, describing it as an attack on shareholders - of Telstra or otherwise.

While not opposed to "sensible reform" of the current access regime, the Coalition has joined Telstra in seeking more time to propose amendments to Conroy's legislation.

"We remain fundamentally opposed to what amounts to a blatant attack on the shareholders of a publicly listed Australian company," Senator Minchin said.

Senators Xenophon and Fielding separately met with Telstra yesterday to hear the incumbent carrier's pleas for a delay in passing the legislation, but both separately also met Optus today to hear advocates for the opposite position.

A spokesperson for Senator Xenophon told iTnews that the Senator is "broadly supportive" of a Telstra split but is equally aware of Telstra's need for more time. He plans to meet Senator Conroy shortly in an effort to form a position on the matter.

Fielding, meanwhile, will not state his position on the legislation until he has read all the transcripts from the Senate inquiry and a report prepared by the Senate.

Comments: 7

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scan06disk Oct 20, 2009 3:17 PM	Telstra should sell their HFC Cable network, as prices are too high and they simply can't manage it ! and BS to giving them more time !
cootified Oct 20, 2009 4:38 PM	I don't understand the arguement. The NBN will be built with or without Telstra seperation so what's the deal? It just means that Telstra will miss out on NBN products and services and the possibility not receiving a 4G spectrum?
scan06disk Oct 20, 2009 4:47 PM	@cootified There's more than that, if Telstra were to sell their HFC cable network, it would provide an almost immediate start for the NBN Co., with more than 50% of coverage. Also, If telstra seperate into wholesale and retail, yes shareholders will lose money, but the competitive nature of the market will improve.
anonymous Oct 20, 2009 5:23 PM	@scan06disk, it's far from certain that shareholders need to lose any money at all. The restructure may force Telstra to end the monopolist hubris that has seen it rely on spin, political scheming and legalistic gaming and go back to focussing on the needs of the long-suffering customers. If the corporation went back to looking after both wholesale and retail users, then Telstra future growth prospects would be greatly enhanced and that would of course be reflected in returns to shareholders.
tempname Oct 20, 2009 8:39 PM	I find it funny that they bring in the share price as one of the reasons not to split Telstra. 1. Buying shares has always had a risk and people should be prepared to loose it. 2. I didn't hear people complain about the Telstra share price when it dropped from $5+ down to what it is now. Probably thanks to Solomon Trujillo.
wolfpac Oct 20, 2009 9:53 PM	telstra is to big anyways just spit them cause if you give them MORE time they will find so other reason NOT to SPLIT....so telstra go suck an egg you WILL lose in the end so stop PROLONGING the case would ya i want cheaper phone rental and your not making it easyer for the public (telstra)
mick09 Oct 20, 2009 10:39 PM	A modicum of public scrutiny of Conroy's antics and the wolfpack bays!! Afraid of the light, boys? All negotiations between Telstra and NBNCo/AusGov are SECRET (at Conroy's insistence) till after a final agreement is signed. Hence all this p***ng into the wind! I'd love to see Quigley announce NBN as Telstra HFC, with optional twin-can-string fallback for when it rains. Can you imagine the cheering? And Santa Conroy announce a special Telstra bonus for Christmas, just to enhance "future growth prospects". And don't forget a Christmas card for Sol Trujillo! How relevant and predictable. NBN is currently a meaningless political slogan, with no form or definition, hence no cost or value. After the NBN implementation study is published, a debate may be possible. Meanwhile mates, just check the wind direction before relieving yourselves.