Telstra risks and benefits from reforms says Tanner
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CANBERRA, Oct 21 AAP
October 21 2009, 6:38PM
Finance Minister Lindsay Tanner admits Telstra will face "risks and challenges" as a result of telecommunications reform but says there will also be opportunities.
The opposition is trying to block government moves to structurally separate Telstra.
Labor wants the telco's wholesale and retail businesses separated - either voluntarily or by force - to create a more level playing field before rolling out a national broadband network.
Mr Tanner said the Rudd government wanted to create a genuinely competitive market.
"It's understandable that some Telstra shareholders are concerned about the government's plans," he said.
"But those in the investment funds market trying to stir up those concerns, it's important to look at the total picture.
"The loss of Telstra's monopoly dominance does produce some risks and some challenges for Telstra but these changes also involves risks and challenges for other telcos."
And he stressed there was an upside for Telstra.
The government underwritten infrastructure would be hugely beneficial to telcos, he said.
"Who is the biggest telecommunications provider? Telstra," Mr Tanner said.
"So although they are challenged on one front they have huge opportunities on the other."
