The death of Telstra FTTN is blamed on the Federal Government

For generally killing off Australian network investment and for stalling a multi billion dollar upgrade of fibre-to-the-node connections on its fixed network has been blamed on the Trade Practices Act by Telstra.

David Quilty, the group managing director for public policy and communications at Telstra launched a stinging and sustained attack on the telecoms competition regime that sits under the Act during an address in Canberra recently to the National Press Club.

A long list of alleged deficiencies in the regime was outlined by Quilty.

Amongst these were that “it is inefficient, doesn’t produce timely outcomes, is not grounded in clear economic principles, vests virtually unparalleled discretion to the regulator… [and] discourages major capital investment in network infrastructure”.

The stifling of investment by Telstra in fibre-to-the-node (FTTN) technology was something he directly blamed the regime for.

Quilty said “For three-and-a-half years, Telstra has been unable to progress a multi-billion dollar upgrade of its fixed network to fibre-to-the-node because the regime prevents us from securing the regulatory certainty to make such a major investment.”

The encouragement of Telstra’s competitors to not invest in their own infrastructure by the regime was something quilty inferred.

Quilty said “The regime incents Optus to purchase access to Telstra’s network rather than to use its own cable network in Sydney, Melbourne and Brisbane. Why? Because it’s easier, cheaper and less risky to purchase from Telstra than to invest in competing infrastructure. The build versus buy balance is seriously out of kilter at a time when Australia desperately needs this infrastructure,” he said.

A submission would be lodged by Telstra to the Productivity Commission’s annual review of regulatory burdens on business said Quilty. He said the submission “will detail Telstra’s proposals for overhauling the telecoms regime, including the design principles for establishing a more pro-investment system of third-party access.”