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Old 05-04-2008, 12:20 PM
Alan Parkington
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Default Telstra chairman hits back at Optus

From
http://www.businessspectator.com.au/...D?OpenDocument

Telstra Chairman Donald McGauchie has hit out at the Optus-backed G9
consortium's renewed interest in building the national broadband network,
declaring Telstra the only viable bidder.

In an exclusive KGB Interrogation, Mr McGauchie told Alan Kohler, Robert
Gottliebsen and Stephen Bartholomeusz that Telstra was the only company that
could build and operate the high tech fibre-to-the-node (FTTN) network.

"No one else can do it in the way we are capable of doing it," Mr McGauchie
said.

"I can't imagine that the Government would want to go down a path with
someone who was not capable of delivering."

Earlier in the week, Optus Chief Paul O'Sullivan said his Optus-led G9
consortium would bid to build the network, but was unhappy at the Federal
Government's decision not to extend the deadline of July 25.

In a wide-ranging interview, Mr McGauchie categorically ruled out bidding
for the network if structural separation was imposed as a condition of the
tender.

"Structural separation is frankly really dangerous in what it does to a
system.

"Not only would it be unattractive to us, but it would be incredibly
damaging to Australia," he said.

Structural separation would lead to the break-up of Telstra's retail and
wholesale divisions, a move floated by Labor during its time in opposition.

However, McGauchie was coy when discussing his views on the Rudd Labor
government.

"The new government has a view as to what they want out of
telecommunications and we'll do our very best to work with that," Mr
McGauchie said.


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