Oppn to oppose telecommunications legislation
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CANBERRA, Oct 20 AAP
October 20 2009, 2:01PM
The coalition will oppose the federal government's telecommunications reforms, introduced as part of its plan to build the $43 billion national broadband network (NBN).
In a joint party room meeting on Tuesday, the coalition agreed the legislation, which paves the way for the break-up of Telstra, should be opposed in its current form.
The coalition will try first to defer consideration of the legislation until the completion of an implementation study into the NBN project.
But, if unsuccessful with its deferral move, the coalition will try to defeat the bill on its second reading in the Senate.
If it cannot get the necessary support to defeat the bill, the coalition will move a range of "significant" amendments.
Telstra has also called for the legislation to be delayed.
Labor wants Telstra's wholesale and retail businesses separated - either voluntarily or by force - to create a more level playing field before rolling out the NBN.
Under legislation introduced into parliament last month, the telco would be required to divest itself of its cable television interests and a 50 per cent stake in Foxtel before expanding its advanced wireless broadband services.
The legislation gives the government power to impose functional separation if Telstra fails to undertake structural separation.
Communications Minister Stephen Conroy last week said he was committed to having the legislation debated and passed this year.
But opposition communications spokesman Nick Minchin said there was nothing in the legislation that urgently required it to be debated and rushed through the parliament by the end of this year.
"This legislation is predominantly about the government trying to force Telstra and its 1.4 million shareholders to prop up Labor's $43 billion NBN project," he said on Tuesday.
"It includes the outrageous provision to preclude Telstra from participating in future auctions for spectrum for higher capacity mobile broadband services, if it does not break itself up and divest its cable network and Foxtel interests."
The coalition was not opposed to "sensible" telecommunications reforms and enhanced consumer safeguards, Senator Minchin said.
But the legislation in its current form also afforded new and almost unfettered powers to the regulator, which should be carefully considered.
The NBN implementation study is not expected to be completed until next February.
"Therefore, it makes perfect sense to defer consideration of this legislation until that time," Senator Minchin said.
"The government should use the coming months to engage in proper and undistorted commercial negotiations with Telstra about the NBN and the company's structure."
By Karlis Salna
