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.
Hopefully they will come up with the right solution, Telstra shouldnt be split wholesale (network) and retail but should ne split into different networks - copper - cable - mobile. With each network looking after its own infrastructure and competing againts each other for customers.