OPTUS CHIEF EXECUTIVE URGES FEDERAL GOVERNMENT TO DRIVE COMPETITIVE TAKE UP OF BROADBAND

Speaking in Brisbane today at a QUT Portman Innovation Series Luncheon, Optus Chief Executive Paul O'Sullivan called on the Federal Government - whichever party is elected - to take urgent steps to drive the competitive take up of broadband.

Mr O'Sullivan said this was the most important policy challenge in telecommunications.

He called on the Federal Government to implement a three-part plan to unleash the competitive potential of broadband:

1. Stop Telstra gaming in wholesale broadband and restore resale margins
2. Protect companies building their own broadband networks - set rules to ensure Telstra plays fair in facilitating competitive rollout
3. Make investments viable - link resale economics to investments in building competitive broadband networks.

Mr O'Sullivan said the Government should adopt 'outcomes based regulation' - specifically designed to achieve the outcome of much higher broadband take up and, in turn, a much more open and competitive market structure in the local loop.

Mr O'Sullivan's speech highlighted the critical relationship between technological innovation and vigorous competition.

Optus has played a critical role in driving new technology in Australian telecommunications, both in its own right and as part of the SingTel Group - which is building Asia's largest telco, with operations in 20 countries and some 52 million mobile customers.

Mr O'Sullivan said that the winning partnership between Optus and the Queensland Government and business community had delivered substantial competitive infrastructure to Queensland - including the Reef Network, a competitive fibre optic network linking nine Queensland regional towns.

Thanks to the Queensland Government's foresight, under the SmartNet initiative, which involved $210 million of committed Government funding, Optus was rolling out broadband infrastructure to 30 regional towns in Queensland, and building new networks in Cairns, Townsville and Rockhampton. These towns would now enjoy a choice of data service provider.

Mr O'Sullivan said competition had delivered many benefits to Australia, citing ACCC figures showing a 62 per cent reduction in the price of international calls between 1997-98 and 2002-03.

But he said there was still a long way to go - and there was a critical new competitive battleground in Australia with the arrival of broadband.

Australia's broadband penetration was low by international standards - but the market was now starting to heat up.

Broadband can bring massive benefits to Australia - including high-speed access for consumers; enabling e-commerce for businesses of all sizes; and delivering economic and social benefits through applications such as telemedicine, distance learning and e-government.

Mr O'Sullivan said these benefits would only be realised if there was vigorous competition in broadband.

Optus is determined to bring competition to broadband - and head off efforts by the incumbent to dominate the broadband market in the same way that it dominated the local loop.

Mr O'Sullivan said there was a critical role for Government in driving the competitive take up of broadband.

For more information:
Luisa Ford
Optus Corporate Affairs
Tel: (02) 9342 5045