Time runs out in the Senate for legislation for Telstra division

The latest announcement of delays now means that the government will need to wait until next year before it can implement the legislation that could see Telstra having to split its retail and wholesale arms before being allowed to improve their existing services or join the NBN.

Time has now run out for any further debate on the telecommunications legislation by the Senate, which means that the passing of the bill to separate the retail and wholesale arms of Telstra must now be delayed by the federal government until February 2010.

Although Stephen Conroy, the Communications Minister had said that the bill would be passed before Christmas, he will now have to wait until parliament resumes in February of next year follow the focus of the Senate on the highly controversial emissions trading scheme.

Efforts to stop Telstra acquiring the necessary wireless spectrum needed to advance its mobile broadband Next G business unless it sold its 50 percent share in Foxtel and its cable broadband network, or agreed to split its retails and wholesale arms voluntarily have now been delayed because the legislation has not been passed.

The federal government has been in serious talks recently with Telstra regarding its involvement in the National Broadband Network (NBN) and will using this delay to finalize a deal with the network operator.

David Thodey, the chief executive of Telstra said that the company was still in the middle of negotiations with the government regarding its involvement in the forthcoming NBN at a recent gathering of business executives.

In an attempt to improve the services it offers in a sector that is considered incredibly competitive, Telstra also announced that it has released a range of brand new broadband plans

Source – Business Spectator