[LINK] Minister wants Telstra split into three

[Antony Barry]

On 02/06/2011, at 7:08 AM, stephen at melbpc.org.au wrote:

> Sorry Tony, but from here the link resolves to: "We could not find the 
> page you requested. This is either because: there's an error in the 
> address or link, due to a technical fault it has not been properly 
> published, it is an older article that has been removed from our site."
> And, doing a site search on the Subject line gives no joy. A mystery? 
> 
>> 
>> http://www.smh.com.au/business/-1fgo7.html
>> 
> 

The link came from the new SMP iPad app. Maybe there is a lag before the material gets to their main web site. The text is still in todays "issue" on my iPad and reads -


JUNE 02, 2011 ARTICLE 15 OF 24
Minister wants Telstra split into three
LUCY BATTERSBY

TELSTRA must split its business into three divisions and put Chinese walls between the retail unit and other units in a structural separation proposal from the Communications Minister.

But wholesale customers want more guarantees that Telstra's retail arm will not receive favourable treatment from its wholesale or network divisions while the national broadband network is rolled out.

Stephen Conroy's department yesterday released drafts of five instructions outlining how the government wants customers to migrate from Telstra's copper network to NBN Co's fibre network and how Telstra should separate its wholesale and retail operations.

Telstra will use the instructions as a guide to drafting its own separation and will submit its undertaking to authorities soon after it finalises a multi-billion dollar deal with NBN Co, a Telstra spokesman confirmed yesterday.

After a consultation period, final drafts of the instructions will be sent to the Australian Competition and Consumer Commission, which must approve Telstra's deal with NBN Co and its structural separation undertaking before shareholders give their approval.

While the national broadband network is under construction Senator Conroy wants Telstra to split into three business units - wholesale, network and retail - and prohibit staff in the retail business from working for the other two areas.

Lawyer Brendan Coady, from Maddocks, said the draft documents do not ask for enough transparency on the prices Telstra charges its own retail division, which competes against Telstra's wholesale customers.

''It is a bit short on detail [with] general provisions requiring Telstra to provide equivalence and transparency but not a lot of guidance as to what that means in real terms,'' he said.


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Tony

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