The government proposes to force Telstra into separating its retail ('telco') and infrastructure businesses. The reasons for this are:
- Telstra has long drawn the attention of the ACCC because of its anti-competitive practices
- Telstra has a significant history of belligerence against the Federal Government (former and current), as it seeks to exercise monopolistic business practices
- the sale of Telstra "lock stock and barrel" to form a private, largely monopolistic company was always bad policy. (from the previous Federal Government led by John Howard)
- Telstra made only a token, even mock, tender for the rollout of the National Broadband Network (NBN). Its tender deliberately did not meet specified requirements, and it was excluded. It then complained about its exclusion!
- establishing a separate business entity would mean that Telstra (the retail telco) would be forced to pay similar, or identical, rates to its competitors for access to the infrastructure. It would open the retail telco to more competition.
MP's should vote FOR the structural reform of Telstra.