Additional Comments - Senator Fiona Nash
1.1
The report comprehensively addresses the issues surrounding the National
Broadband Network.
1.2
However, regarding the committee's consideration of the
Telecommunications Legislation Amendment (Competition and Consumer Safeguards)
Bill 2009:
-
The legislation, while potentially providing a pathway to a
future National Broadband Network, is not dependent upon the creation of an
NBN. It stands alone in addressing the current concerns with the operation of
the regulatory environment.
-
While the alternate view has been put, Telstra has been provided
with a choice to either structurally or functionally separate.
-
Reference in the report to concerns regarding Telstra being
precluded from investing money into new telecommunications infrastructure due
to the potential cost of separation to the company, should be seen as Telstra's
view.
-
It should be recognised that while there has been a view put
forward that separation had not been an overwhelming success in the UK, the
alternate view also exists. Ofcom, the UK communications regulator, has said
that the functional separation has been a success, and directly attributed
rapid growth in broadband and dramatic falls in broadband prices to the
structural reforms.
-
The previous 'negotiate and arbitrate' models in dealing with
access by the ACCC have not been effective. The changes in the legislation are
a welcome step forward.
-
While the committee notes that they fail to see how restricting
Telstra's future expansion in the mobile market will strengthen competition, a
contrary view also exists that precluding Telstra's access to further spectrum
is appropriate in order to address anti-competitive practices.
.......................................
Senator Fiona Nash
(Deputy Chair)
25 November 2009
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