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Politicians dispute over Telstra split
21 October 2009
Australian government plans to break up Telstra are creating a political dispute in the Federal government, with opposition parties calling for a review of that and the National Broadband Network plan
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[Telstra]
[Australia]
[National Broadband Network]
[Conroy]
But communications minister Stephen Conroy says he wants to stick to the schedule of concluding negotiations with Telstra by the end of 2009, leading to a split of its wholesale and retail arms into separate units — or even separate companies. The government wants Telstra to split off its cable TV business and sell half its interest in the Foxtel programming operation.
The opposition parties are saying that the government is seeking to impose a “rash, unjustified and irrational change of policy” on Telstra by trying to split it into two.
Conroy is saying further delay will cause uncertainty for investors. “For those who want to argue for delay, they’re actually arguing to continue the uncertainty for Telstra investors,” he said in a TV interview with Australia’s ABC. “They’re arguing to continue higher prices, slower speeds and less innovation for Australian consumers.”
The minister added: “We committed to reform the telecommunications sector, because Telstra continues to be the most vertically integrated telecommunications company in the world.”
But an opposition politician, Nick Minchin, said the strategy “makes no sense whatsoever”.
The Australian government is allying its policy on Telstra to its plan to build a carrier-neutral national broadband network, which would connect most households and businesses with fibre. GTB
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