Telstra’s Structural Separation Undertaking is well-received

As we have said all along, there are no longer any incentives for Telstra to game the system in relation to the NBN. BuddeComm has always been confident that Telstra and the ACCC would come to an agreement on the specifics of the structural separation.

Telstra’s latest submission on its Structural Separation Undertaking (SSU) has received widespread support, from both the regulator and the industry, and there are no more issues that should delay the formalisation of this process. As we have argued, it is impossible to envisage ‘to the nth degree’ what might happen over the next ten years and we need to have confidence that the regulatory processes that are in place will be able to iron out any unforeseen problems that may occur.

At the same time we have expressed concern regarding the transitional period, since during this time Telstra could take advantage of the regulatory framework that is still in existence for the current copper-based infrastructure, which would make it very difficult for the rest of the industry to develop a good transition for their businesses from the current DSL-based infrastructure to the future fibre-based network.

It therefore makes sense for all parties involved to let the ACCC arbitrate, and for it to set the wholesale prices for these services. And it looks as though this is what will now happen over the ensuing months.

By early 2012 this should all be sorted out and put in place and once that has happenedAustraliais well and truly on its way to becoming a leader in the digital revolution. More and more countries are beginning to understand that to successfully address today’s social and economic problems they will need to have in place a first-class ICT infrastructure to make the transition from the old economy to the new one.

Next yearChinawill have more FttH connections than the rest of the world combined. That country is building smart grids and there are already millions of electric vehicles on the road utilising these new infrastructures.

Is this not an incentive for us to at least remain on a par with them? Surely this will convince the naysayers to invest in digital infrastructure!

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