Communications Industry Revolution Confirmed – Short Term Reform Details the Next Step

Telstra’s public acceptance that it must engage in negotiations to structural separate was a welcome development and an important milestone in the delivery of the Government’s reform agenda, the CCC said today.

Just as important, however, was the clear statement from the Government that it will require any agreement to separate over time to include measures to improve competition immediately, and press ahead with the reform legislation that stalled in the Senate last month to ensure that this happens.

“Structural separation of the network from the retail parts of the industry will eventually position Australia as a world leader in competition and in improved consumer prices and services,” CCC executive director David Forman said.

“The less discussed but equally important part of the Government’s reform agenda – creating an NBN-ready industry structure – is what competitors are now looking forward to seeing delivered.

“Today’s announcement makes clear that the Government remains committed to achieving a competitive level playing field as quickly as possible, and that it will press ahead with having any agreement between Telstra and the NBNco overseen by the ACCC.

“These are assurances that the CCC has been asking for, and they are very welcome.

“The success of the NBN in its early years requires a vibrant, innovative and competitive downstream industry with wholesalers and retailers driving new services and lower prices to release latent demand for higher speeds.

“We look forward to seeing the details of any separation arrangements set out in the new year,” Mr Forman said.

Contact:
David Forman
Executive Director
CCC Inc
0438121114