Telstra makes its appeal to the Senate
- 13 October, 2009 14:32
- Comments 9
Telstra has appeared before the Senate in an attempt to resist legislation that would force it to split its business in half.
In his opening address to the Senate, Telstra’s NBN engagement director, Geoff Booth, reinforced Telstra’s support of the National Broadband Network (NBN), while simultaneously opposing the proposed legislation. He claimed it had significant implications for Telstra, the industry and the NBN itself.
Expanding on a written submission made to the Senate last week, Booth claimed Telstra had been supportive of the NBN from the outset, and set-up an NBN Engagement Group, made evaluations on options for Telstra to be involved in the NBN, and been active in discussions with the Government and NBNco.
Telstra would like to find a mutually beneficial outcome for all, Booth said in his address.
The legislation, as it stands, will not achieve that, instead causing a reduction on competition, especially in the mobile and media markets, he said.
Booth also suggested the decision would harm consumers, particularly those in rural and remote Australia, provide the Australian Competition and Consumer Commission (ACCC) with expanded powers unparalleled in any other industry, and destroy value for the 1.4 million shareholders that purchased Telstra shares from the Government over the past 12 years.
Booth also made the request that, if the Senate does indeed plan to proceed with the Bill, then it should defer the debate.
The Government’s plan to structurally separate Telstra first came to the fore in September in order to promote competition in the telecommunications industry.
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Comments
Angus
Telstra
We can only hope the gargantuan beast that is Telstra is slayed. May sanity and decently affordable telecommunications reign supreme for all!!
Anonymous
Helstra
Either way, i hope Telstra will be split into two because its good for consumer.
JonBOY
"instead causing a reduction on competition, especially in the mobile and media markets, he said."
A reduction in competition! HAH! It'll be an open access network where every ISP has an equal opportunity to access the infrastructure.
Just because Telstra might be locked out of mobile spectrum, doesn't mean a decrease in competition. God I hate Telstra.
PK
Telstra doesn't speak for me...
As a (small) Telstra shareholder i want Telstra split for the good of all Australians. Does anyone know where to contact Investor Relations of Telstra to voice my opinion?
PK
As a (small) Telstra shareholder i want Telstra split for the good of all Australians. Does anyone know where to contact Investor Relations of Telstra to voice my opinion?
Francis
What a crock, Telstra
"Booth claimed Telstra had been supportive of the NBN from the outset, and set-up an NBN Engagement Group, made evaluations on options for Telstra to be involved in the NBN, and been active in discussions with the Government and NBNco."
Does he think we are all fools? It's like listening to Robert Mugabe claiming the high moral ground on human rights.
Telstra produced a 1000-page audit of its entire infrastructure and then wrote a (non-compliant) letter as its entire submission to the original NBN. Some support.
Telstra shareholders have a right to just recommence for the re-acquisition of the now-ageing infrastructure, but all Australians have a just expectation that the government will not fall for corporate sob-stories.
Senator Conroy is receiving solid advice behind the scenes, and has wisely resisted the luddite options proposed by his political opposites.
In fact the cash windfall and relief from ongoing infrastructure maintenance will benefit Telstra shareholders.
As for rural and regional customers, only the NBN can deliver high speed services, since they will be uncommercial. The very reason the government is running the NBN is to first deliver for the have-nots.
But I'm not telling the Senators anything they don't already know. Telstra should just get on with selling the assets.
Anonymous
You realise that telstra's reduction in competition is mainly mobile, as you say it is not economical in the bush.... and who is the company providing the best service to the bush (mobile lets ignore broadband arguements) it is Telstra.. it may be expensive but it is the best, and if this venture has no future (cannot acquire more spectrum) it may just pull the plug... or not increase coverage both of which would be BAD for regional consumers. An overpriced Telstra service is better than none at all, you pay for the coverage as you need it, if you didnt you'd get optus, vodafone etc. NBN will not deliver anything in the way of wireless mobile coverage... unless you plan on taking you laptop around (with a big modem) for voip services... not exactly the best solution.....
There is also many commentators (neutral) who also believe that the government is just recreating the old telstra... one network... with telstra gone no wholesale competition for the consumer... then what happens if the government overcharges (they have to pay for the NBN somehow) we have no option (as we do now) but to pay the high price...
I beleive in the NBN think it will be great but agree with telstra that there is no need to structually seperate (functunal possibly)... if their copper is better value for me I want to be able to use it... not have to use the governments NBN because they say so...
AlanTa XGF CrUsAdeR
telstra
all good and evil things come to an end...
Telstra has in my opinion been a hog for to long. yeah, out with the old and switch in the new lines. The US and UK benefit from cheap internet, its about BLOODY time we got a piece of that pie to. I just hope all the governments plans don't end up crumbling away.
After all the positive news lets not see the legislation be positioned somewhat so it ends up in a garbage bin if Telstra pull a leg, i prefer the, bringing of the millions of pipes underground strewn across the country.
good article
Anonymous
Too much Greed.
I think this is great personally, Telstra has for far far too long been too damn greedy.
Just knowing what they had initially proposed in their NBN bid that later had them banned, typical Telstra, low usage, slow speeds, high cost.
I can't wait for the NBN to be built and in place, nearly every other non 3rd world country benefits from fast, high usage, cheap internet, it's about time we got it.. A great move on Rudd's part.
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