According to a new report from competition regulator the Australian Competition and Consumer Commission, Telstra breached obligations related to its Structural Separation Undertaking (SSU) in the past year.
The ACCC’s annual report on Telstra’s compliance with its Structural Separation Undertaking (SSU) has been tabled in Parliament. Telstra needs to do more, it says.
In its submission to the Vertigan NBN report Telstra has argued in favour of its structural separation – so long as the regulatory framework of the NBN does not change too much.
The ACCC has issued a damning report about Telstra’s non-compliance with its Structural Separation Undertaking (SSU) obligations under the NBN program. The report outlines seven areas in which Telstra allowed commercially sensitive information to pass between its wholesale and retail arms, putting its rival broadband providers at a disadvantage.
Telstra has finalised its Definitive Agreements with NBN Co and the Commonwealth, clearing the way for its participation in the NBN and entitling it to payments from the government expected to be worth approximately $11b in post-tax net present value over the life of the agreements.
Telstra has taken a significant step forward to completing its agreement to participate in the NBN with the lodgement today of a revised structural separation undertaking (SSU) with the ACCC.
The ACCC has received three submissions: from AAPT, Optus and on behalf of Adam Internet, iiNet, Internode and TransACT all similarly critical of the revised structural separation undertaking submitted by Telstra to the ACCC last month.
Macquarie Telecom has issued a damning assessment of Telstra's revised structural separation undertaking saying it fails to provide for equivalence, transparency, monitoring and compliance in an appropriate and effective manner.
Communications minister senator Stephen Conroy has extended until 31 March 2012, the deadline by which Telstra must complete its structural separation. This takes the total extensions to 12 months, after a further six months legislation requiring Telstra to have instead completed functional separation will come into force.
The Competitive Carriers' Coalition has fired another salvo at Telstra's plans for structural separation, branding Telstra's proposal for rebates if its wholesale services fail to meet specified performance levels as "[failing] to meet even the basic criteria which would be expected of a standard, commercially negotiated arrangement."
The long planned structural separation of Telecom New Zealand that will see the operator of its access network hived off as a separately listed company, Chorus, has passed its last hurdle and will be completed on 30 November.
Telstra is seeking to allay the ACCC's concerns and the widespread industry opposition to its structural separation undertaking with plans to hold an industry forum, ahead of which it has released an issues paper.
Ahead of the formal vote at today's AGM Telstra has revealed that the deal it has struck to participate in the NBN has received overwhelming support from shareholders.
Telstra has told shareholders that it does not expect any changes required by the ACCC to its proposed structural separation plans will have a material impact. This is very surprising given the strident and almost universal opposition to the plans from Telstra's competitors.
Dominant carrier Telstra, has hit back at demands from its competitors to make public financial information relating to its proposed structural separation in the wake of the National Broadband Network, citing commercial sensitivity of some of the data.
The anti-Telstra brigade of competing carriers has demanded that the dominant market player make public internal financial data associated with its proposed structural separation negotiated with the Federal Government as part of the move to the NBN.
The prospects for the ACCC accepting Telstra's structural separation undertaking - a prerequisite to Telstra participation in the NBN - are receding rapidly with Telstra's competitors making a highly critical submission to the ACCC's review of the undertaking.
Grant Samuel, the independent expert called on by Telstra to review its planned participation in the NBN under the definitive agreement, has backed the plan, concluding that Telstra will be $4.7b better off than under any alternative scenario.
The ACCC has started its public consultation of Telstra's structural separation undertaking and migration plan saying it believes significant changes must be made to the undertaking to make it acceptable.
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