June 12, 2009

Telstra’s submission to the Government’s regulatory review demonstrates the company remains deeply out of touch with the rest of the industry, the regulator, the Government and, indeed consumers, the CCC said today.

Telstra’s submission persists in the delusion that there is no real problem with communications competition in Australia caused by Telstra’s market power, and proposes little more than tinkering to address what is now universally acknowledged as a competition crisis.

At the same time, Telstra wants other measures that will enhance rather than reduce its market dominance.

“It is really quire remarkable that Telstra continues to think it can stand apart from the entire industry and the ACCC by pretending not to see what is now obvious to all – that its vertical and horizontal integration is at the heart of the communications market competition problems,” CCC Executive Director David Forman said.

“About the only thing that can be said for the Telstra submission is that, at 28 pages, it is longer than the press release Telstra submitted instead of a proper NBN bid.

“Telstra’s claim that it has developed this response after consulting with its wholesale customers is laughable.

“Look at the gulf between Telstra’s plan for tinkering around the edges of the existing processes and the detailed and weighty proposals for structural reform advanced by almost the entire rest of the industry, let alone the 374 pages from the ACCC.

“One can only conclude that Telstra either simply did not read the Government’s regulatory reform options paper or decided not to take it seriously.

“It is clear from the paper that the Government is not asking, ‘Is there a problem with Telstra’s integration and market power?’, it is asking ‘What are the best options to deal with this problem?’.

“This arrogant response from Telstra shows Government has no choice but to prescribe the strongest reform medicine for Telstra, based on separating its wholesale and retail businesses once and for all.

“Telstra is clearly not capable of proposing genuine reform, and must have it forced upon it.”

Contact:

David Forman

0438121114

david@ccc.asn.au