ID :
204415
Tue, 08/30/2011 - 14:33
Auther :
Shortlink :
https://oananews.org//node/204415
The shortlink copeid
Telstra split plan unacceptable: ACCC
The competition watchdog says it cannot accept a crucial aspect of Telstra's move to structurally split its retail and wholesale arms.
The separation is a key part of the federal government's plan for the national broadband network (NBN).
The Australian Competition and Consumer Commission says the telco had no compliance plan for its commitment to structurally separate the two arms from 2018.
The commission's preliminary view was that the structural separation undertaking provided by Telstra did not address legislative requirements, chairman Rod Sims said on Tuesday.
The commission has released a discussion paper asking for comments from industry stakeholders and consumers on Telstra's structural separation undertaking and draft migration plan.
Mr Sims said the commission's main concern was how Telstra would maintain equivalent services for customers.
The commission's initial view was that there needed to be a clear and enforceable commitment to an "equivalence of outcomes" that enabled wholesale customers and Telstra's retail businesses to gain access to key input services of equivalent quality and functionality.
The commission also had major worries about arrangements between Telstra and NBN Co, especially the ability of the two companies to change conditions of their agreements without more scrutiny by the competition overseer.
Telstra will have to take into consideration the commission's concerns when it submits a revised and acceptable structural separation undertaking.
The telco said it would work with the ACCC to obtain acceptance of the structural separation proposal and draft migration plan before Telstra's annual general meeting on October 18.
"If this does not occur, Telstra may nonetheless seek Telstra shareholder approval at that meeting," it said in a statement.
"However, commencement of the definitive agreements with NBN Co and the commonwealth would still be subject to acceptance by the ACCC of the structural separation undertaking and approval of the draft migration plan, and the satisfaction or waiver of any other outstanding conditions precedent."
Interested parties wishing to make submissions on the discussion paper should do so by September 27.
Communications Minister Stephen Conroy would not comment on the watchdog's preliminary findings, saying in a statement that it was "entirely a matter for the ACCC".
He welcomed the release of the discussion paper and that he looked forward to the ACCC's final determination.
Opposition communications spokesman Malcolm Turnbull said the government had been "caught out".
"I'm pleased to see the ACCC has been very critical of the extraordinarily anti-competitive elements in the Telstra-NBN deal, which says Telstra is not allowed to promote wireless as an alternative to the NBN's broadband services," he told ABC Radio.
"The ACCC has been quite right to call Telstra - and by implication, the government and the NBN - out on this.
"Because in any rational arrangement, we would want to be encouraging competition ... because competition is what will drive lower prices."
The separation is a key part of the federal government's plan for the national broadband network (NBN).
The Australian Competition and Consumer Commission says the telco had no compliance plan for its commitment to structurally separate the two arms from 2018.
The commission's preliminary view was that the structural separation undertaking provided by Telstra did not address legislative requirements, chairman Rod Sims said on Tuesday.
The commission has released a discussion paper asking for comments from industry stakeholders and consumers on Telstra's structural separation undertaking and draft migration plan.
Mr Sims said the commission's main concern was how Telstra would maintain equivalent services for customers.
The commission's initial view was that there needed to be a clear and enforceable commitment to an "equivalence of outcomes" that enabled wholesale customers and Telstra's retail businesses to gain access to key input services of equivalent quality and functionality.
The commission also had major worries about arrangements between Telstra and NBN Co, especially the ability of the two companies to change conditions of their agreements without more scrutiny by the competition overseer.
Telstra will have to take into consideration the commission's concerns when it submits a revised and acceptable structural separation undertaking.
The telco said it would work with the ACCC to obtain acceptance of the structural separation proposal and draft migration plan before Telstra's annual general meeting on October 18.
"If this does not occur, Telstra may nonetheless seek Telstra shareholder approval at that meeting," it said in a statement.
"However, commencement of the definitive agreements with NBN Co and the commonwealth would still be subject to acceptance by the ACCC of the structural separation undertaking and approval of the draft migration plan, and the satisfaction or waiver of any other outstanding conditions precedent."
Interested parties wishing to make submissions on the discussion paper should do so by September 27.
Communications Minister Stephen Conroy would not comment on the watchdog's preliminary findings, saying in a statement that it was "entirely a matter for the ACCC".
He welcomed the release of the discussion paper and that he looked forward to the ACCC's final determination.
Opposition communications spokesman Malcolm Turnbull said the government had been "caught out".
"I'm pleased to see the ACCC has been very critical of the extraordinarily anti-competitive elements in the Telstra-NBN deal, which says Telstra is not allowed to promote wireless as an alternative to the NBN's broadband services," he told ABC Radio.
"The ACCC has been quite right to call Telstra - and by implication, the government and the NBN - out on this.
"Because in any rational arrangement, we would want to be encouraging competition ... because competition is what will drive lower prices."
