Alston orders inquiry into Telstra split - News - Communications

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This story was printed from ZDNet Australia.
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Alston orders inquiry into Telstra split

By James Pearce, ZDNet Australia
December 11, 2002
URL: http://www.zdnet.com.au/news/communications/soa/Alston-orders-inquiry-into-Telstra-split/0,130061791,120270616,00.htm

An inquiry is underway into the proposed structural separation of dominant Australian telecommunications company Telstra and subsequent sale of the services division.

The controversial proposal was put forward in a white paper, Reforming Telstra, by Shadow Communications Minister Lindsay Tanner in May this year, and involves separating the retail and wholesale arms of Telstra. This would allow the retail division to be privatised, allowing for competition, while keeping the infrastructure in public hands to ensure national interest is satisfied.

The Minister for Communications, Information Technology and the Arts, Senator Richard Alston, has welcomed the inquiry, which is being conducted by the House of Representatives Standing Committee on Communications, Information Technology and the Arts.

However, he refuted any suggestion the inquiry signals a change in policy direction for the Government, saying it has clearly stated its position on the future ownership of Telstra, and remains absolutely opposed to the structural separation of the telecommunications giant. However, the Government has passed legislation requiring the accounting separation of the retail and wholesale arms of Telstra.

Tanner is reportedly pleased the Government is considering the structural separation of Telstra. The white paper he released was intended to stimulate debate in the topic, but most of the discussion has come from Labor politicians.