Breaking news: Telstra will split for NBN

31.03.2009
Telstra has agreed to an operational split of its wholesale and retail arms if it wins the A$4.7 billion (US$3.2 billion) National Broadband Network (NBN) following clandestine talks with Communications Minister Stephen Conroy.

Internet service providers said the move, announced by the telco Tuesday at the Sydney CommsDay conference, will "liberate the telecommunications industry" from exorbitant wholesale access prices and bring access agreements in line with those in the UK and much of Europe.

The move follows comments by outgoing Telstra CEO Sol Trujillo that the telco stands to lose some $2 billion in lost revenue for its exclusion from the NBN tender after it , and confirms the telco has been considered by the government selection committee.

It has also triggered speculation that its inclusion in the bidding process could be behind the government's refusal to release NBN regulation documents requested by Tech Wired under a freedom of information request.

Internode managing director John Lindsay said an operational-separated Telstra NBN will ensure the taxpayer-funded network provides competitive access and availability for consumers.

"Internode welcomes the exciting new era in Australia's telecommunications industry," Lindsay said.

"We look forward to fair and equal access to the taxpayer infrastructure."

Telecommunications analyst Paul Budde said: "It is the best thing that could have happened to the industry and it is fantastic that Telstra has realised cooperation is the only way forward in telecommunications."

"Seeing Telstra back at the table is something the industry has worked on for many years."

Sources close to the minister's department suggested the wireless broadband network, established by the then Howard government and by Conroy three months after taking office, will be re-established under a new government-funded ISP cooperative to deploy WiMax throughout regional Australia.

The initiative would remove much of the OPEL network's coverage overbuild that triggered from ISPs fearing the network would cannibalise tapering revenues.

Lindsay said the rebirth of wireless broadband in the bush would solve many access problems in regional areas.

"OPEL was the right choice after all," Lindsay said.

More to follow.