Rivals tell Telstra to make plans public

Several rival telcos have reacted to the breakdown of Telstra's talks with the competition regulator over a new fibre broadband network by demanding Telstra make its proposal public.

This morning Telstra said differing opinions over costs had forced an impasse in the talks with the Australian Competition and Consumer Commission (ACCC). The two had for some months been negotiating terms under which the network would be built.

The telco this afternoon released some technical -- but not other -- details of its draft proposal, but some competitors called for more.

"It's probably time for Telstra now to come out publicly with the material that it thinks is reasonable," Macquarie Telecom's national executive for regulatory and government, Matt Healy, told ZDNet Australia via telephone.

"This is the time for Telstra to show the detail of what it's been discussing with the Commission. We think that should have been done quite some time ago."

The comments echo recent sentiments by ACCC chairman Graeme Samuel that Telstra should make its proposal available to all.

"We call on Telstra and the ACCC to now release the proposal and the two percent issues that became sticking points," said iiNet general manager of regulator affairs Steve Dalby.

But Phil Burgess, Telstra's group managing director for public policy and communications, said this morning in a media teleconference that Telstra saw no need to release its draft proposal as it would not be working further with the ACCC on the conditions under which the network would be built.

Telstra's fibre just a feint?
In an e-mailed statement, Optus director of corporate and regulatory affairs Paul Fletcher alleged Telstra had not been serious about building the network.

"Today's announcement confirms suspicions Telstra's fibre to the node plans were simply a regulatory leverage technique," Fletcher said in an e-mailed statement.

"The suspicion is reinforced by Telstra's refusal to publicly disclose its regulatory terms for building the network."

The Competitive Carriers' Coalition (CCC), a lobby group representing telcos like iiNet, Internode, PowerTel and Macquarie Telecom, backed Fletcher's view.

"By declaring war on the competition rules, Telstra succeeded in creating months of confusion and uncertainty for its competitors' investment plans, while it was falsely talking up the progress of discussions with the Commission," CCC executive director David Forman said in a statement.

"We always said it was a Bunyip, a creature of the dark. Well, now the spotlight's been brought to bear, it's just dissolved," said iiNet's Dalby, describing Telstra's fibre plans as "a ploy".

Telstra's rivals were also united in pointing out they continued to move forward in building broadband networks of their own irrespective of what Telstra did.

"The rest of the industry has been getting on with it for the year in which Telstra has been vacillating -- delivering up to 24Mbps ADSL services to the market while Telstra customers languish at 1.5Mbps," said Internode managing director Simon Hackett in an e-mail to ZDNet Australia.

"The rest of the market (and their customers) have been marching forward while Telstra cries in the corner over milk that it just spent a year spilling over its own head."

The telcos commenting on Telstra's decision are also members of a consortium known as the G9, representing major competition to Telstra's services in Australia. The group has in recent months proposed an alternative fibre network plan.

"Regardless of Telstra's game playing, the G9 is continuing to work on its detailed plans and recently met with the ACCC," said Optus's Fletcher. "If our discussions with the ACCC and other parties progress well, we will have more to say. However, we anticipate the process will take a number of months."

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Talkback 6 comments

    Never had any plans Kieran Foy -- 08/08/06 (in reply to #120139705)

    This mob of crooks never had any plan.There is no money.Why do you think they have had to resort to stealing from employees superannuation accounts.Creative accounting cannot last forever.Get outa Telstra now.

    Telstra ADSL2+ at half speed Matt Reid -- 08/08/06

    I read in a major newspaper this morning that Telstra is considering rolling out ADSL2+ now....but at a maximum of 12Mb/s. Funny how the technology is there, but they won't use it to make a quick buck. Tel$tra is holding back the consumer broadband market in Australia, not the ACCC.

    To Mr Kieran Foy Anonymous -- 08/08/06

    Them very dangerous accusations about Telstra dipping into employees super and unless you have some facts I would keep you mouth shut!

    Why should Telstra build a fibre network just so its competitors can ride on the coattails of its investment? The government is 100% responsible for its idiotic policy and decision making – nothing strategic nor sustainable in anything they’ve proposed.

    The government has pushed Telstra into a corner where they need to surgically remove services from its portfolio that are simply not profitable. How can Telstra possible meet the objectives and needs of both the government and shareholders?

    If I was Sol I would be making similar decisions, why feed your competitors? Your shareholders will crucify him more than they already want to.

    The Australian public needs to pressure the government(s), both state and federal to invests and subsidise telecommunications as its not possible for Telstra to achieve its financial objectives demanded by its shareholders whilst delivering services that government constituents want and need. One option would be to get rid of ‘Rotten Johnny’ and for the government to take back ownership of the infrastructure and for Telstra to be retailer of services only, with the government wholesaling the services back to everyone. Anyone who wishes to invest beyond what is provided at a base level can do so based on their own investment strategies.

    Whilst we continue to have the current government at the helm, Australian people will continue to suffer. Our only hope is that we mine the crap out of this island of ours and hope that WA doesn’t want to break free at become its own country.

    To anonymous Kieran Foy -- 08/08/06 (in reply to #120139713)

    Lots of facts.Vote rigging,superannuation theft, lies to ACCC,ASIC and markets.All still being perused by Helen at this moment.Yes the truth will be dangerous for some people.

    to Anonymous Robert Mettam -- 08/08/06 (in reply to #120139713)

    Anonymous asks "Why should Telstra build a fibre network just so its competitors can ride on the coattails of its investment? "
    Well, in the real world, someone will be the wholesaler and others will be the retailers. In this case, Telstra had said that it would build a network and then on-sell the services to the other providers.
    Idealogues like Anonymous might not like real-world answers, but if its just not commercially viable to provide wholesale services at the cost that the ACCC mandates, then it won't be done. By anyone!

    Speculative Rhetoric Nathan Smith -- 08/08/06

    I would like to point out that I am yet to see G9 or the CCC provide a true Broadband proposal that would be applicable to the entire nation - which includes rural and remote areas by the way. G9 and CCC seem to perform a lot of speculative rhetoric (ala name calling) from the sidelines, but themselves are playing no active part in providing a solution. I think it would be interesting to see G9's FTTN proposal get legs and be implemented. I'd then also like to see Telstra knocking on G9's front door (as a wholesale customer). I wonder how long it would then be before the grass didnt look so green for G9 as the national provider and slave to ACCC draconian regulation? I wonder whether G9's shareholders would also be happy with a shaky-at-best ROI under the current regulatroy regime?

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