[AusNOG] Telstra to be split?

[Luke Connolly]

http://www.news.com.au/technology/story/0,28348,26075552-5014239,00.html


THE Rudd Government has introduced major changes to telecommunications  
laws, including the separation of Telstra.

"Today we are delivering historic reforms in Australia's long term  
national interest," Communications Minister Stephen Conroy said this  
morning.

"The Government will require the functional separation of Telstra,  
unless it decides to voluntarily structurally separate."

Telstra has been given the choice of voluntarily separating its  
infrastructure and retail arms in a manner approved by the competition  
watchdog.

If it chooses not to, the legislation will let the Government impose  
rules on the way it operates.

The rules include making sure Telstra charges other companies a fair  
price to access its network.

Telstra will also be prevented from moving into advanced wireless  
broadband unless it separates and divests its cable broadband and  
Foxtel assets.

"These reforms will address Telstra's high level of integration to  
promote greater competition and consumer benefits," Senator Conroy said.

Related Coverage

	• More: Coverage at The Australian
	• Conroy to enforce Telstra break-upThe Australian, 15 Sep 2009
	• Rudd to break up TelstraDaily Telegraph, 15 Sep 2009
	• Telstra to be broken upThe Australian, 15 Sep 2009
	• Conroy lays path for Telstra splitAustralian IT, 15 Sep 2009
	• Readers' Comments: Govt to force Telstra split - PerthNowPerth Now,
Your Say

This is wonderful news. For far too long this 800 pound gorilla  
dominated the telecommunications sector inflicting poor products,  
services and prices on a nation that had little oth...

(Read More)

LCS of Sydney
The changes, included in an update to the Telecommunications Act, will  
be tabled in Parliament today.

Senator Conroy said Telstra and the Government had already been in  
talks about the move.

"Telstra are very constructively engaged in discussions with us  
already," Senator Conroy said.

"They were very well prepared already when we had our first meeting."

The Government was flexible on how Telstra may choose to separate, he  
said.

"The Government maintains an open mind on how structural separation  
may be achieved," he said.

"It may include a new company Telstra that may transfer some of its  
fixed-line assets to."

Senator Conroy said previous governments of both persuasions had  
failed to address telecommunications reform.

"The measures in this legislation will finally correct the mistakes of  
the past," he said.

Telstra has previously strongly resisted moves to separate its  
infrastructure and retail arms.

The new laws will also give more power to the competition watchdog and  
the communications minister to protect consumers and issue warnings to  
telcos.

A new Universal Service Obligation will ensure "all people in  
Australia to have reasonable access on an equitable basis to standard  
telephone services".

It will also regulate the removal of payphones and include serious  
penalties – up to $10 million – for Telstra if it fails to comply.




Finally, IMHO.. Discuss.