Trujillo welcomes gov't end to fibre jam

Telstra head Sol Trujillo has told staff he welcomes the government's decision to appoint a panel charged with breaking the fibre-to-the-node deadlock -- but it has no plans to negotiate over a rollout.

In a letter to Telstra workers, Trujillo said: "On balance, I think this is a good sign because the government apparently sees the need to break a regulatory logjam that is now stopping the deployment of fibre-to-the-node (FTTN).

"The solution to breaking the logjam is simple: backward-looking regulations need to be changed if we are to enjoy continued progress in telecommunications."

It's expected the panel in charge of regulating fibre deployments will be appointed by the government this week. Telstra has criticised plans for a fibre network deployment by the rival Optus-led G9 consortium as a "non-starter" and a "press release" with little credibility.

Trujillo also used the letter to question who will be chosen to sit on the panel, requesting that the government choose those who have yet to pick a side on the controversial issue.

"The composition of the 'expert panel' is the business of the government. It is not our business. Though we assume they will include people with experience and competence, people who are fair and balanced in their approach -- and exclude people who have already embraced one approach or another in the ongoing broadband debate."

Trujillo also stated he believes such issues should be dealt with by the government and not regulators. The telco has been involved in an ongoing spat with the communications watchdog, the ACCC, which yesterday highlighted how the question of Australia's fibre future could affect the overall telecoms market, saying in a report issued this week competitors could be "exposed to significant risks" from any Telstra FTTN deployment.

Telstra and the ACCC were previously involved in discussions over how competitors would be allowed access to the network but talks broke down last year.

Trujillo, meanwhile, reiterated Telstra's intention to stick to its guns over fibre-to-the-node, telling staff: "When this process comes about, we will be engaged with our plan for FTTN -- not a proposal or a concept. We have already completed a management plan, financial operating plan, engineering plan, deployment plan, and a technology evolution plan ... I should add, that we are not engaging in this process to 'develop' or 'refine' or 'negotiate' a plan."

The telco is, however, involved in negotiations over planned redundancies. Telstra is currently talking with the government on how to minimise the effects of the closure of 13 call centres, which will result in the loss of 500 jobs.

Tasmania's Coalition members and senators, including the federal member for Bass, Michael Ferguson, also met with Telstra yesterday and hope to convince the company to retain its call centre at Launceston, which employs 250 workers.

Talkback 11 comments

    Trujillo Ransom Anonymous -- 15/06/07

    Trujillo - I hope you'll leave us, preferably very soon, so that we're not held to your ransom demands. There are better, more constructive, and simpler ways of setting up an Australian-wide communications infrastructure than your $$$$$ dreams imagine. You, and your adverts, are simply gross. R

    Trujillo is NOT first over Australia.

    Trujillo Arrogance Anonymous -- 15/06/07

    So Telstra are trying to call the Gov't bluff by daring them to select someone other than Telstra for the Broadband solution? This must be the ultimate in arrogance. Of course if the G9 (and any others that may enter the fray) are NOT successful, then Telstra will stand to get their way and their price - we will all suffer.

    And as for the sackings - is this the only method left for Trujillo to meet his cost / profit targets so that he gets his next bonus? Has he run out of ideas to actually improve the business? He gets his bonus due to the improved bottom line, the workers have to do more work for the same pay, the share price goes up (probably will trigger another bonus), Sol get his higher price broadband solution (maybe), this leads to another profit increase - more bonus, etc.

    Bugger the rest of us and the poor workers.

    Trujillo Rex Alfie Lee -- 19/06/07 (in reply to #320081056)

    He never had any intention of providing services. He doesn't care about them & never did before. Why change now?????

    Telstra Holding Us Hostage Mame du Bois -- 16/06/07

    I am dismayed that the ongoing debate hasn't been picked up by the mainstram media.

    Telstra is basically holding the future growth of the Australian economy to ranson here.

    I am glad I am not a Telstra shareholder.

    Telstra Holding Us Hostage Anonymous -- 16/06/07 (in reply to #320081072)

    No, Telstra isn't holding the future growth of the company to randsom. I wish people would look at what they are saying with an open mind. All it wants to do is invest (a bloody lot of money, mind you) and be reasonably certain they can foresee a viable return. That's no different then BHP, Coles, Woollies or even you or me. Telstra isn't public anymore. The government sold it. Yes, they sold every exchange, every duct, every peice of wire, every building, every call centre. Yes, Telstra holds a special position within the country but look around at Australia's corporate landscape. It's full of duopolies! Toll - Qantas - Adsteam... WAKE UP!!!! What Telstra needs to do now is focus on it's Customer Service and it's billing.

    To the Telstra Pr Hack Above.. Anonymous -- 17/06/07 (in reply to #320081096)

    Only a Telstra Paid PR Hack, would come up with such rubbish above. Lets just examine one such cosy duopoly for example. You mentioned Qantas, or rather the airline industry in Australia. I can catch a plane from sydney to melbourne for roughly 100 bucks, or even cheaper depending on whether jetstar, virgin, is offering a special price at the time.
    What Telstra is proposing is daylight robbery, close to 100 bucks for 512kps minimum broadband. On top of petrol prices, mortgage payments, this needed bit of national infrastructure is now going to cost families even more just so that they can educate their children

    Trujillo Anonymous -- 17/06/07 (in reply to #320081146)

    This is just one bloody big mess all made by Mr John Howard

    Telstra Holding Us Hostage Rex Alfie Lee -- 19/06/07 (in reply to #320081096)

    Do you actually believe the crap you wrote?

    Wake up Anony Mouse! Telstra is just screwing themselves into the ground whilst hoping that by maintaining a monopoly they'll be able to continue supplying a less than useful service.

    The agreement was equitable & up-to-date, throughout Oz, not the non-service they provide now. It was also to be including the other competitor companies.

    John Howard's fault & his amazing economic shift survives bcoz of this & GST but has demolished broadband services in so doing as well as a decent standard of living without us working ourselves to death to pay tax.

    Telstra Holding Us Hostage Rex Alfie Lee -- 19/06/07 (in reply to #320081072)

    You're absolutely right! I sincerely hope the G9 makes it & with enough financial support from Gov't & these major businesses, don't forget that these businesses are not small & Telstra are basing there commentary about these "miniscule" companies, on a tirade of propaganda from Mr Sol (Sun-shines-out-of-my-bottom) Trujillo.

    The fact is that here in Oz they may not be as big as Telstra but their resources are huge & if they see the possibility & worthwhileness of this investment, then Telstra you can go to hell.

    Once upon a time this company was a great company but between Mr Sol (Sun-shines-out-of-my-bottom) Trujillo & the last peanut in charge, Telstra has turned into scumbags, to use a former PM's words.

    Trujillo, Howard & Telstra Rex Alfie Lee -- 19/06/07

    Firstly, Mr Howard succeeded in supplementing his own pockets & those of the Gov't coffers with his sale of Telstra. His doing & his fault that this incredible crap is continuing.

    Trujillo is a mastermind at doing nothing about services. He doesn't care about them & has basically said so & proven this with the demolition of the last 2 companies he CEO'd in the states. (btw, I'm not going looking for it to back up as it is pretty easily found & one of the local stations ran a doco on it anyway). This guy runs the company into the ground, gets paid fantastically for it & screw everyone else. He doesn't care bcoz he's going back home eventually anyway. On that note - good riddance!

    As far as Telstra is concerned, the basic strategy was this, private if you provide a reasonable & equitable service throughout the country.

    Well, guess what? Telstra provides FA service & eqitably, zip.

    To the anonyMOUSE (SQUEAK!!) Telstra shareholder above, you're a fool if you buy the crap Trujillo is selling & if you don't then you're a traitor to Australia for the crap you just wrote. You know what the original bargain was & your company are just spitting on the rest of Australia. I hope your company & others like you go broke!!!

    TELSTRA Anonymous -- 11/10/07

    W HO CAUSED THESE DEBATES OOPS WAS IT JOHN HOWARD .GOV .INC!!
    THE SALE OF TELSTRA IS JOHN BOYS KERRS KERR.
    IT SHOULD NOT OF HAPPENED O/F WAS ROLLING OUT QUITE WELL UNTIL YES BLOODY SHAREHOLDERS TURNED UP.

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