Labor promises tougher Telstra split

Labor Communications spokesperson Stephen Conroy has promised to be tougher on Telstra over operational separation.

Conroy said in an interview with The Australian that, if elected, Labor will introduce a new approach to the regulation of operational separation, saying: "We'll get rid of it and start again. We'll have a tougher operational separation regime."

"The operational separation regime is a complete joke, all it does is tie up resources that cost consumers ultimately, and achieves zero. We don't believe that is a worthwhile way to regulate," Conroy told the paper.

Conroy cited the examples of BT in the UK and Telecom New Zealand as examples of telcos who have experienced forms of separation and have not suffered as a result.

The Senator also said that Labor's planned fibre-to-the-node network could help prompt such regulatory change.

Earlier this year, Federal Communications Minister Helen Coonan suggested that the government's own fibre-to-the-node (FTTN) plan could eventually lead to some form of structural separation for Telstra.

Coonan said later that while the government itself will not be looking to structurally separate the telco, the expert taskforce in charge of picking who will build Australia's high-speed fibre network may consider separation if one of Telstra's rivals eventually wins the contract.