Australia - Operational Separation of Telstra

Synopsis

In September 2005, following several years of fruitless discussions, the government announced the operational separation of Telstra. Australia is one of several countries who followed the UK (where such far-reaching regulatory reforms have already been introduced) and launched their own initiative. However, the government ruled that implementation of the reforms will be carried out by Telstra, and the Minister will monitor the situation. Two years later nothing has happened, with the Minister basically deferring this issue till the review in 2009.

Table of Contents

• 1. Synopsis
• 2. Recent Developments
  • 2.1 ACCC on Operational Separation
• 3. Government plans
  • 3.1 Green light for operational separation
  • 3.2 Equivalence and transparency
  • 3.3 Outline of the plan
  • 3.4 Compliance reporting
  • 3.5 Organisational arrangements associated with compliance
  • 3.6 Provision of information to the ACCC
• 4. Telstra in the driver’s seat
  • 4.1 A Telstra-driven operational separation
  • 4.2 Telstra’s plans accepted by government
  • 4.3 Analysis of Telstra’s plans – June 2006
  • 4.4 Telstra’s initial response to Ministerial Directions – Feb 2006
• 5. Preamble
  • 5.1 Productivity Commission outlines Telstra break-up
  • 5.2 ACCC submission to the PC Report
• 6. Separate Reports
  • 6.1 Structural Separation a defiant Telstra
  • 6.2 Structural Separation and the Private Equity Market
  • 6.3 Related reports
  • Exhibit 1 - Designated services