Conroy stops payphone extinction, evangelises Telstra separation

Photo credit: Sailor Coruscant

The Federal Government will also introducing measures whereby consumers would be able to apply to the Austrlian Communications and Media Authority (ACMA) to stop Telstra removing payphones in their area.

Under new powers, ACMA would be able to order Telstra to retain the phone. Failing to do so would incur civil penalties or on the spot fines.

The plans were outlined by communications minister, Stephen Conroy, in an interview with 5AA Adelaide radio, in which he also pointed to higher prices and slower speeds for broadband in Australia as the major reason for the proposed Telstra separation plans announced yesterday. Conroy said that 20 years of telecommuncations policy had left Telstra as the dominant player.

“One company [Telstra] is making 90 per cent of the profits and what that has meant for Australians is that they're paying more compared to around the world for broadband than other countries. And we've got slower broadband speeds than other countries,” he said.

“So we've got the double whammy — higher prices, slower speeds — and that is because of a failure of the structure of the industry…”

Telstra’s shareprice took a hit with the announcement of the planned separation, but Conroy said the price in the longer term would turn around.

“We believe that with the new constructive leadership being shown by Catherine Livingstone and David Thodey, that there is a possibility of a win-win outcome here,” he said.

Commenting on yesterday’s announcement that the Federal Government would look to reform the Trade Practices Act, giving the ACCC more powerful anti-competitive powers, Conroy said the universal service obligation under the Howard Government "became a bit of a joke".

“We want better standards, better terms and conditions for services, connections, and repair times,” he said. “We've also introduced, for the first time, penalties of up to $10 million if Telstra fails to meet its obligations, and we've new minimum performance benchmarks that those fines are based against.

“Also, customer service guarantee again has drifted a little bit under the previous Government who were more interested in maximising Telstra's profits so they could flog it off, and we're going to have new minimum performance benchmarks to be on time or better with connections and repairs and, again, fines and penalties for non-compliance,” Conroy claimed.

Commenting on the announcement of the planned separation, Shadow Communications Minister, Nick Minchin, said the proposal was a “naked and desperate attempt” to prop up the government's reckless $43 billion NBN Mark II proposal.

"Despite saying it is prepared to 'go it alone' on the NBN, the reality is it knows that without Telstra’s assets, expertise and customer base the project simply cannot be viable and probably will never get built.,” Minchin said in a statement.

"Out of pure desperation, resulting from its failure to deliver on its broadband election promises, it has now put a gun to the head of Telstra to try to force it and its 1.4 million shareholders to help Labor deliver on its promise.”

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