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Opposition seeks delay in Telstra shake-up
21 January 2010
The Opposition parties in Australia’s federal parliament have come out against the government proposals to break up Telstra
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Telstra
Australia
Optus
National Broadband Network
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Comment: Telecoms are political — there’s no doubt about this. The debate about the future structure of the telecoms industry is not just a technological or a business discussion.
Australian opposition parties are backing the deferment of the breakup of phone company, Telstra. The Labor government legislation seeks to force Telstra to split its retail and cable network arms. It also wants Telstra to commit its cable assets to a $37 billion government broadband plan to push super-fast fibre-optic cable into almost every home.
If Telstra is unable to comply with the government, it will have to divest its cable network and half-share in pay-TV broadcaster Foxtel. It may also be denied the wireless spectrum it needs for its mobile business and to unveil its fourth-generation mobile technology.
Telstra has opposed the draft legislation and has called for it to be delayed. If unsuccessful with its deferral, opposition politicians in the Australian federal parliament will try to defeat the bill on its second reading in the Senate. According to Opposition communications spokesman, Nick Minchin, they will take a united stand to delay consideration of the telecommunications legislation until the implementation study into the government’s $43 billion national broadband network is completed in February 2011. GTB