From
http://www.theaustralian.news.com.au...-36418,00.html
TELSTRA has urged a Senate inquiry to delay debate on proposed changes to
telecommunications laws until it had concluded its behind-closed-doors
discussions with the government.
"If the government decides to proceed with the Bill, we believe that it is
only sensible that the Senate defer debate until after the conclusion of the
constructive discussions between Telstra and the government over the NBN and
the completion of the government's NBN implementation study," Telstra NBN
engagement group chief Geoff Booth said.
The company stood by its firm opposition to the government's plans to
revolutionise the telecommunications' regulatory regime by splitting
Telstra, telling the Senate inquiry that doing so would damage the success
of the $43billion National Broadband Network.
Mr Booth reiterated the key-points of Telstra's 27-page submission to the
committee. issued on Friday, which claimed the legislation would undermine
the government's ambitious high-speed broadband strategy, reduce industry
competition and disadvantage regional and rural customers.
Flanked by Telstra executive director of regulatory affairs Tony Warren and
managing director of public policy David Quilty, Mr Booth said the telco
continued to support the government's "NBN vision" but urged for significant
amendments to the Bill.
The Bill, if passed, could mean Telstra voluntarily splitting its wholesale
and retail businesses in two and vending its copper-based telephony network
into the $43bn NBN.
Failure to voluntarily split could force Telstra to sell its cable network
and half-share in pay-TV broadcaster Foxtel, or be denied the wireless
spectrum it needs to build its lucrative mobiles business, events
shareholders say would devastate their investments in the company.
By drawing on similar experiences overseas, Telstra has calculated the cost
of separation to be in the range of $500 million to more than $1.2 bn.
Although many industry observers have commented that separation of dominant
telcos in Britain and New Zealand has been achieved for much lesser sums of
money, Dr Warren argued otherwise.
"Well, it's been a success if your objective is to hamstring the incumbent,"
he told the Senate inquiry.
"I think the pretty clear outcome is that it's harmed shareholders, it's
harmed consumers."
Australia's largest listed investment company, Australian Foundation
Investment Company, reiterated its disdain for the government's plan to
dismember Telstra, saying it would result in nothing but value destruction
for mum and dad shareholders.
"The important issue for us was to put our shareholders' voice in front of
the Senate," AFIC managing director Ross Barker said.
"Shareholders have a legitimate point of view to be heard in this, and the
preference for them is that the legislation will not be passed, but as a
second resort it should certainly be delayed until after Telstra and the
government finish their negotiations."
Split would put the NBN at risk, Telstra warns inquiry 
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