Reforms To Split Telstra Welcome: Peak Body

Reforms to Split Telstra Welcome: Peak Body

The announcement of reforms to increase competition within the national telecommunications sector, including reform of Telstra's market power and structure, will be critical to deliver a competitive national telecommunications market, said Infrastructure Partnerships Australia the nation's peak infrastructure body.

"The Government's commitment to work with Telstra to encourage structural separation and to provide a legislative fall back of functional separation - is the best outcome for shareholders, business and consumers," said IPA Executive Director, Brendan Lyon.

"A world-class telecommunications industry is essential to Australia's long-term economic productivity.

"The World Economic Forum1 recently ranked Australia 17th in the world for availability and use of information and communication technology well behind many of our trading partners and competitors.

"Reform toward a competitive telecommunications marketplace cannot wait the five or eight years until the NBN is delivered. The sooner that we can deliver a contestable, competitive telco market, the sooner Australia's businesses and consumers can reap the benefits of a competitive market.

"Telstra's privatisation and the liberalisation of the telecommunications market during the 1990s saw the beginnings of a competitive market.

"These reforms have achieved some of their goals but further reform is long overdue to promote a level playing field that will deliver sustainable competition over the long term.

"The fixed line market has been particularly restricted by the 1990s reforms. The structural separation of Telstra's wholesale and retail components, coupled with fair wholesale pricing for all retailers will remove opportunities for abuse of the current market structure.

"IPA supports an active role for the ACCC as a strengthened, independent market regulator. Anti-competitive behaviour within the market damages outcomes for market participants, consumers and the national economy."

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Media contact: Ruci Fixter 0438 380 464

1 World Economic Forum (2009) The Global Enabling Trade Report 2009
Infrastructure Partnerships Australia is a national forum, comprising public & private sector CEO Members, advocating the public policy interests of Australia's Infrastructure Industry.

SOURCE: IPA