26Mar 09
Telstra: We hear separation rumours
Posted by Phil Dobbie @ 11:25 64 comments
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Is the government manoeuvring towards a structural separation of Telstra?
Telstra's Group MD for Public Policy and Communications says they've heard rumours but no one from the government has spoken to them about the prospect. Nor have they been consulted about integrating the winning National Broadband Network bid into the Telstra network.
Does this indicate that the government's broader plan is to announce a split of Telstra's retail and wholesale divisions as a means of facilitating the build of the NBN?
In this week's Twisted Wire Phil Dobbie talks to David Quilty, who says that that approach is not necessary and is likely to be counter-productive. Does Quilty see the ACCC's threatened court action as a forerunner to separation? If the outcome is unfavourable for Telstra will the company consider legal action of its own undertaking?
It's a complex issue. Add your thoughts to the debate in the comments section at the end of this post.
Next week Optus shares its views on the issue. Why does it see structural separation as being necessary?
Phil Dobbie is a broadcaster and businessman with more than 15 years commercial experience across the telecommunications, internet, tourism, advertising and radio industries. Dobbie also provides a daily podcast for our sister site BNET.com. Join him for BTalk Australia, where he provides a lively and insightful view on business issues, adding his blend of irony and humour to the discussions.






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I've always said that I don't support a seperation of Telstra. What I do support are easier ways for Telstra's market might to be competed with OR a government buyout of Telstra and every single ISP coupled with regulation of prices just like the old days. Either way we'll see a lower price so that everyone can afford a phone and Internet access.
Seperating Telstra would just lead to the two seperate entities colluding in some way and there'd be no real improvement on the situation that currently sees Telstra wanting to control everything.