The early months of 2002 saw much political activity regarding Australia’s dominant telco. Proposals for the virtual separation of Telstra was welcomed across the industry, except of course by Telstra itself. Soon after, the Federal Treasurer announced the further sale of Telstra remained in the government’s agenda. The Federal Opposition also had suggestions for the separation of the incumbent, and Telstra was once again in the political spotlight. Concerns for regional Australia immediately rose to the fore as well, hoping to exploit the industry changes heralded. This report presents the Governments proposals for separation and privatization and the related industry issues of pricing and access.
Table of Contents
2. Sorting out the regulators
3. T3 could result in full separation
4. Alston’s reforms could be watered down
5. Amendments to the Telecommunications Act and the Trade Practices Act
5.1 Competition to receive a much-needed transfusion
5.2 From virtual to full separation only a matter of time
5.3 Limits to delaying tactics
5.4 Will Telstra pre-empt the changes
6. Tariff and pricing issues
6.1 Price caps
6.3 Rebalancing is needed
6.4 The changes of April 2002
6.5 Analysis of the rebalancing changes
6.5.1 One-way rebalancing
6.5.2 Confusion results in 15%-20% premium (overcharge)
6.5.3 Flat rate packages
6.5.4 Who will benefit?
Table 1 – Price caps on Telstra – January 1996 to July 2002
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