-
Many
of those submitting to this inquiry have expressed their support for the
separation legislation. A number of submissions overwhelmingly indicated that
Telstra’s level of vertical integration and consequent monopoly has been
detrimental to competition in the telecommunications industry. The submission
from the Australian Telecommunications Users Group (ATUG) is a clear example of
how the lack of competition has lead to higher prices for the consumer.
-
ATUG
made the point very clearly that they believe regional Australia stands to be a
beneficiary from a more effectively competitive market structure.
-
The
central arguments from those submissions that oppose the bill are that
separation will discourage investment or cause losses; and that separation
transitional costs are too high for Telstra. In my view this reflects short
terming thinking. Companies in other jurisdictions that have undergone
separation have adapted to, and in some cases welcomed, their new regulatory
environment.
-
As
highlighted by the Department of Broadband, Communications and the Digital
Economy, the three Telstra sale prospectuses were clear about the potential of
regulatory changes in the telecommunication sector that might affect Telstra's
competitive position.
-
Having
attempted measures to encourage operational separation of Telstra in 2005, it
is apparent that that policy did not yield the results hoped for in terms of
allowing for greater competition. Therefore, stronger separation is the only
logical way forward.
-
I
agree with the conclusion that previous “negotiate and arbitrate” models in
dealing with access by the ACCC have not been effective. The changes regarding
this in the legislation are a welcome step forward.
-
Evidence
to the inquiry showed that there was agreement for the consumer safeguards in
the bill. I believe these safeguards will prove efficient protection
mechanisms, particularly for regional areas.
-
In
2005 the Page Research Centre, through the Regional Telecommunications Inquiry,
identified there was a lack of competition in the telecommunications sector in
rural and regional Australia. Its research found that lack of access to
infrastructure at a fair price was inhibiting service providers entering into
the regional market.
