Telcos push for Telstra break-up laws

A group of telecommunications companies have urged federal politicians to pass legislative reforms that would lead to a break up of Telstra business.

The companies, who make up the bulk of the telecommunications sector aside from Telstra, said any delays to the proposed reforms will cost all Australians.

The federal government's proposals would see Telstra's wholesale and retail businesses separated - either voluntarily or by force - with the aim of creating a more level market for telecom services ahead of the rollout of a national broadband network (NBN).

The draft laws have passed the lower house of parliament despite the coalition seeking a delay of the legislative debate until the completion of an implementation study into the NBN.

The Australian Greens and independent senator Nick Xenophon have indicated they will not support the opposition move to delay a Senate vote on the reforms.

In a joint statement, iiNet, Internode, Macquarie Telecom, Netspace, Optus, Primus, TransACT and Vodafone Hutchison Australia said the proposed reforms are long overdue.

"The communities that will benefit most are those that are most disadvantaged by the lack of competition today, especially rural communities that have seen their choice of communications provider diminish in recent years in the face of resurgent Telstra market power," they said.

The cost of a delay in the implementation of the reforms is "real, immediate and an impost on all Australians", the group said.

"Delaying the passage of the legislation until next year would mean benefit would not flow until 2011 at the earliest.

"There is also a risk that the legislation might never be passed if the opportunity we are presented with today is not seized."

The government wants the bill passed before the end of the year.

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