Telstra split 'won't fix monopoly' as rivals fear reform will fail

Posted in: Government & Policy at 28/09/2011 14:02

Optus and three major internet service providers have warned that plans to break up Telstra's fixed-line monopoly - the Gillard government's "holy grail of microeconomic reform" in the telecommunications sector - are doomed to fail unless they are radically overhauled.

Optus, the nation's No 2 telecommunications provider, last night warned that the way the plan was drafted "actually risks reinforcing Telstra's dominance in the next decade and beyond" as Labor's $36 billion National Broadband Network is rolled out.

To read this report in The Australian in full, see:

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ACCC winds up Telstra consultations
The competition watchdog has finished its industry consultation on Telstra's planned structural separation.

In less than a month, Telstra shareholders will vote on the deal with NBN Co, but the Australian Competition and Consumer Commission recently revealed it had several concerns about Telstra's submission. These would have to be fixed before it could approve the document.

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