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TELSTRA'S 32 MONTH CAMPAIGN

For 32 months, since August 2005, Telstra ha been running a campaign in which it promises a new national broadband network - on condition that it is released from the access regime and permitted to charge much higher prices. Telstra has put its position in different ways at different times but its core position has been consistent. The timeline below highlights the key developments.

Date Action Note
11 August 2005 Telstra meets Prime Minister Howard to propose a 6 Mbps national broadband network to 98 per cent of the population, requiring a $2.6 billion Government contribution - with several conditions attached including that the telecommunications access laws be repealed. 1
15 November 2005 Following Government rejection of the August proposal, Telstra announces its plans for a 12 Mpbs fibre to the node network to 4 million service addresses - with several conditions attached including that the telecommunications access laws be repealed. 2
1 December 2005 Telstra GMD Public Policy Phil Burgess issues press release stating that it will build the new network 'if its shareholders investment is protected from regulation that would otherwise allow competitors to piggy-back on the multimillion dollar project.' Press release specifies the required regulatory changes, including 'exempting new services from mandatory third party access.' 3
21 December 2005 Following Government rejection of the proposed regulatory changes, Telstra issues stock exchange release stating that the fibre to the node network is on hold. 4
April 2006 Telstra and ACCC hold discussions concerning whether Telstra would build the network after getting ACCC approval of its proposed wholesale pricing. 5
July 2006 Phil Burgess quoted as saying that discussions are 98 per cent complete. 6
7 August 2006 Telstra issues ASX release announcing that discussions with ACCC have failed. 7
March 2007 Telstra welcomes Labor's Broadband Policy announcement. 8
April 2007 Telstra begins talks with Communications Minister Coonan concerning whether Telstra would build the network if the Government legislated to approve Telstra's wholesale pricing. 9
21 June 2007 Following failure of April talks with Telstra, Minister Coonan announces broadband policy setting out a different way forward. 10
December 2007 Following the election, Telstra lays out its approach to the Rudd Government's broadband policy, making it clear that it will not accept key terms of the policy including Government equity investment in the new network. Sol Trujillo stated in a media interview, "We don't do partnerships" and "They [the Government] have public interest in mind and we have profit in mind", and Phil Burgess stated at an industry conference that "Telstra aims to be a premium provider charging premium prices." 11

Sources

  1. Telstra ASX Release, 9 September 2005, "The Digital Compact and National Broadband Plan", Canberra, August 11, 2005
  2. Telstra ASX Release 15 November 2005
  3. Telstra Media Release, 1 December 2005, 'Telstra seeks investment certainty for IP network.'
  4. Telstra ASX Release, 21 December 2005, 'Fibre-to-the-node'
  5. Fred Brenchley, 'Telstra rivals gain in fibre network deal', Australian Financial Review, Tuesday 18 April 2006, p 3
  6. ACCC Media Release, 7 August 2006, 'ACCC "perplexed" by Telstra decision on fibre-to-the-node investment.'
  7. Telstra ASX Release, 7 August 2006, 'Fibre-to-the-node talks discontinued.'
  8. Telstra, Optus welcome Labor's broadband plan, Renai LeMay, ZDNet Australia, 21 March 2007
  9. ABC TV, Lateline Business, Helen Coonan Interview with Ali Moore, 4 April 2007, http://www.abc.net.au/ lateline/business/items/200704/s1890217.htm
  10. Senator the Hon Helen Coonan, Minister for Communications, Information Technology and the Arts, Media Release, 18 June 2007, 'Australia Connected: Fast, Affordable Broadband for All Australians'
  11. 'Stand-off in Rudd telco plan', The Australian, 4 December 2007; 'Telstra won't hot-tail it with Optus...', The Age, 7 December 2007.
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