OPTUS URGES FUNDAMENTAL REFORM TO PUT NATIONAL INTEREST BEFORE TELSTRA SELF-INTEREST

Optus today called on the Federal Government to continue to look beyond the 'fear, uncertainty and doubt' created by Telstra around the National Broadband Network (NBN) and maintain its focus on the real issue - building a competitive national broadband network which will benefit all Australians for generations to come.

Optus also reminded the Government that creating a 21st century high speed broadband network and market will require fundamental fixes to the industry structure.

Maha Krishnapillai, Director, Corporate and Government Affairs, Optus said "The NBN will be a major piece of national infrastructure that will provide economic stimulus with lasting benefits. It will deliver improved productivity and competitiveness for Australian businesses."

Speaking at the Senate Select Committee into the NBN in Sydney today, Mr Krishnapillai said he was encouraged by Lindsay Tanner, Minister for Finance and Deregulation on the ABC Insiders program on 1 March.

"We welcome Minister Tanner's comments and the Government's commitment to building a world class broadband network that will provide genuine access and genuine competition for the benefit of all Australians.

"The NBN represents a once in a generation opportunity to correct the current regulatory regime. It is time for the firm hand of Government to put national interests above private shareholder interests and create the conditions necessary for a vigorously competitive fixed line market," Mr Krishnapillai said.

Optus' NBN proposal outlines that the regulatory framework should be built around four pillars:

• Structural separation: The regulatory framework for the NBN should ensure that the owner of the NBN is under strict obligations to provide access to the NBN on terms that are genuinely open and equivalent and not clouded by conflict of interest. To achieve this, the NBN owner must not be a retail provider.
• Opens Access principles: The NBN should provide all Access Seekers with access to all services on a transparent and equal basis. This will be achieved by requiring the owner of the NBN to provide services on an "Equivalence of Inputs" basis. In this way, all access seekers would have the right to receive the same products at the same prices and using the same operational support systems.
• Cost based pricing: Prices for services on the NBN should be set at levels which are sufficient only to recover the efficiently incurred capital and operating costs of providing access to and operating the NBN, plus a reasonable return.
• ACCC oversight: To ensure that the above obligations are enforced and competition and consumer interest are safeguarded the NBN must be subject to oversight by the ACCC.

Media contact:
Melissa Favero
Optus Corporate Affairs
Tel: (02) 8082 7850