Telco self-regulation must benefit end users: ATUG

08.03.2006
The Australian telecommunications industry must strike a balance between technology and competition while the government should ensure self-regulation works for the benefit of end users.

Pointing to the operational separation model introduced by Telstra last year as an example of steps being taken to strengthen the regulatory framework, Australian Telecommunications User Group (ATUG) managing director Rosemary Sinclair said it is now up to the government to show a willingness to work with industry for the long-term benefit of users. The operational separation, announced in September 2005, disjoins the wholesale and retail sides of Telstra in order to provide equal service to retail business units and wholesale customers.

Speaking at ATUG's annual conference Tuesday, Sinclair said implementing effective operational separation is both the task of industry and Telstra in 2006, but the view of ATUG is that competition in practice is the only competition that counts.

"The ATUG view is operational separation will be difficult to administer and implement, but it is essential given the bottleneck nature of this infrastructure [copper network]," she said.

"Technology and competition is the balance we need to keep in mind in 2006. We need what new technologies like IP, 3G, wireless, and broadband can deliver, but not at the expense of competition."

Sinclair said the increasing availability of broadband, wireless and expanded mobile is working to create more effective competition than ever before.