The Australian Competition and Consumer Commission (ACCC) has expressed concerns about incumbent Telstra’s plans to separate itself, as required under the National Broadband Network (NBN) plan.
In a statement published on its website, the ACCC…
The Australian Competition and Consumer Commission (ACCC) has expressed concerns about incumbent Telstra’s plans to separate itself, as required under the National Broadband Network (NBN) plan.
In a statement published on its website, the ACCC chairman Rod Sims said: “While the ACCC will move as quickly as possible towards a resolution, the preliminary view is that the structural separation undertaking that has been provided does not address legislative requirements.
“The ACCC’s main area of concern relates to the adequacy of Telstra’s proposed interim equivalence and transparency measures. The ACCC’s initial view is that there needs to be a clear and enforceable commitment to an ‘equivalence of outcomes’ that enables wholesale customers and Telstra’s retail businesses to gain access to key input services of equivalent quality and functionality,” Sims added.
Telstra had submitted its Structural Separation Undertaking (SSU) and Migration Plan with the ACCC in early August.
At the time the company also disclosed the Interim Equivalence and Transparency measures to be applied during the transition to the NBN.
Last year, the company signed an A$11bn (US$11.7bn) non-binding agreement to take part in the NBN project, which requires the company to separate.
As part of the separation plan, customer services on Telstra’s copper network and television network will be taken over by NBN Co, the wholesale company created by the government to implement the NBN programme.
But in a statement today, the ACCC said that it is issuing a discussion paper inviting comment from industry stakeholders and consumers regarding Telstra’s separation undertaking and draft migration plan by 27 September 2011.
The ACCC added that “Telstra will need to consider the ACCC’s concerns before submitting a revised structural separation undertaking that is capable of acceptance by the ACCC.”
Telstra said in a statement: “Telstra will continue to work closely with the ACCC seeking to resolve the issues it has raised with a view to obtaining acceptance of the Structural Separation Undertaking and Draft Migration Plan before the annual general meeting on 18 October 2011. If this does not occur, Telstra may nonetheless seek Telstra Shareholder approval at that meeting.”
As part of the NBN plan, the government aims to expand high-speed broadband internet access to all Australians within three years at a cost of US$38bn. It aims to provide services to 93% of the population through fibre, while a further 7% will be served by either wireless or satellite technology.
