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Telstra calls separation a 'fool's gold' debate

4 September 2008 06:49AM
Tags: nbn | telstra | broadband | separation | network | upgrade

Telstra has used Senator Stephen Conroy's announcement of the closing date for proposals to build the National Broadband Network (NBN) to reiterate the telco’s opposition to separation.

In a statement, Telstra’s GMD for public policy and communications, David Quilty, described NBN as ‘a massive project, bigger than even the Snowy Mountains Scheme, and incredibly complex’.

“The NBN is a major upgrade of Telstra’s existing network,” said Quilty.

"The NBN is urgently required to secure Australia's future economic prosperity and Telstra stands ready to build as long as it is in our shareholders' interest to do so.”

Quilty also used the opportunity to reiterate Telstra's ‘absolute guarantee’ that the NBN would be an open access network.

"Open access means that Telstra's competitors will be able to access the NBN on an equivalent basis as Telstra's own business units,” said Quilty.

"This is a critical promise and we fully expect it to be enshrined in law and to be policed by the ACCC - and we have no difficulty with these protections.”

However, Quilty did say that the ‘guarantee of open access renders obsolete what he called 'the 'fool's gold' debate around separation‘. 

“Separation increases costs and kills off investment and it has not worked anywhere in the world,” added Quilty.

   


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Thoughts on this article? Add a comment below.
Comments: 3
This is all well and good for Tel$tra to make these promises of "open access" to an "equivalent basis", but when has big business been known to operate fairly and honestly, especially Tel$tra. In my opinion I believe that if Tel$tra do win the NBN contract then forced separation should be the first thing the Government puts in place to protect all consumers.
iTnews - comments icon Posted by MatSep 4, 2008 11:14 PM
Telstra can make any claim they like about "open and equivalent access". But the problem remains that as an integrated company they can charge whatever they like to themselves for access to the network, and then retail it at a minimal margin above that. eg wholesale cost per port = $69, Bigpond's retail price = $70. Then they can offer all the other ISPs access and expect them to "compete" at ridiculously low margins. But hey, it's still open and equivalent access, right?
iTnews - comments icon Posted by mehSep 5, 2008 11:09 AM
Meh,they would be two separate companies, with inevitably different shareholders. It would be very bad for telstra retail shareholders in that case, and absolutely no benefit for the company.
iTnews - comments icon Posted by JSep 6, 2008 12:06 AM
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