Broadband community cheers Telstra split

Australia's broadband community is celebrating the Federal Government's recent decision to separate the accounting practices of Telstra's wholesale and retail arms, anticipating increased competition.

The measures will ensure transparent reporting on the deals between Telstra's wholesale and retail divisions, and restrict its ability to appeal regulatory decisions.

-It will definitely have a beneficial effect, in two ways," telecommunications analyst Paul Budde told ZDNet Australia. -Firstly, the competition gets a much better chance to do something in the area."

-Secondly, Telstra is far more focused so it will be more aggressive in facilitating wholesale because it will be seen as a customer, where now it is seen as a nuisance. With more resellers on the Telstra network, that will create lots of activity and new customers."

The Internet Industry Association (IIA) agrees. -This proposal simultaneously addresses the three core impediments to sustainable competition in telecommunications markets since 1997 deregulation," said IIA chief executive Peter Coroneos.

Coroneos sees the three core impediments as being Telstra's conflict of interest, the opaque transfer pricing arrangements which conceal the true cost of pricing of telecommunications services, and the prolonged and convoluted pricing negations Telstra's competitors have been subject to.

Primus Telecom has also come out in favour of the measures.

-The package offers the prospect of improved outcomes for competitors and therefore consumers - that is what competition is all about," said Primus general manager, regulatory, Ian Slattery. -The proposed separation should lead to equivalent treatment of carriers, offer Telstra vastly improved wholesale business development and less chance of anti-competitive outcomes."

Advertisement

Talkback 3 comments

    Yeah Yeah! So what! They'll ju ...Anonymous -- 01/05/02

    Yeah Yeah! So what! They'll just get an army of Accountants in to fiddle the books and VIOLA!, Enron revisited!

    Don't hold your breath. We ar ...Keith Styles -- 03/05/02

    Don't hold your breath.
    We are liable to have an election before Alston gets off his overpaid backside. Even if he does manage to implement these changes, T(H)elstra will already be mustering its financial clout to fiddle the books & mount a legal defence to ensure it doesn't lose its monopoly control.
    They have more legal and accounting staff than the Feds and the ACCC put together. Its no wonder their annual reports are so lousy. The overheads are crippling.
    Our Feds are all PI*S & WIND.

    Im just waiting until my telst ...Anonymous -- 04/06/03

    Im just waiting until my telstra broadband contract is finished, then bye bye telstra.
    $100.00 per mont nearly for 3gb download.

    Tell me a good broadband supplier other than telstra

Add your opinion

Latest Videos

Sponsored content

Power Centre - Content from our premier sponsors

Blogs

  • Suzanne Tindal IT: Govt's cost-cutting bitch
    The government needs to stop looking at IT as a necessary evil or the place to remove costs when the Treasurer comes calling.
  • Array Can complaints on mobile content be cut?
    On 1 July this year the new Mobile Premium Services Code was introduced. It sounds like it's had a good impact, but is it enough?
  • Array NZ farmers: Bleating about broadband
    As we know, farmers are such bleaters. They bleat as much as the four-legged woolly things in their paddocks. If it's not the weather, it's the strength of the dollar! Nothing is ever right. Likewise with rural broadband.
  • More blogs »

Tags

Back to top

Featured