Debate at the senate inquiry on the Telstra split heats up

As the debate over the splitting up of Telstra becomes more heated the group has fronted the first Senate inquiry it has had in over three years to argue its case over separation.

A Senate Select Committee on the tender for the Federal Governments $4.7 national broadband network will be attended by David Quilty, the head of public policy and communication at Telstra.

An attack on Telstra’s structural separation is likely to be his opening statement, the separation will involve separately-owned businesses being created by splitting up the retail and wholesale operations of the telco.

Nick Minchin, the Shadow Communications Minister took the opportunity at a recent Senate question time to clarify whether Stephen Conroy, the Communications Minister still considered the NBN tender to include the split.

A comment regarding the separation and its merits were commented on by Lindsay Tanner who is now the Finance Minister five years ago and Senator Minchin asked Senator Conroy whether this would be a policy the Labor Party would be sticking to.

Advising that there had been no “preconceived preference” over what kind of access model would be required for the NBN, Senator Conroy said he wouldn’t rule out splitting Telstra.

He advised “What is important is that the government focuses on objectives such as competition, open access and equivalence. It is not surprising that some proponents are keen to avoid the competitive tension of the NBN process by seeking to have regulatory options ruled in or out before bids have even been lodged.”

Sol Trujillo, the boss of Telstra said that if the telco breakup was ever agreed that shareholders should “shoot management” The threat from Donald McGauchie in June, saying that if separation wasn’t ruled out the telco would leave the National Broadband Network process has stirred up a lot of tension between Telstra and the government.