Conroy confident on Telstra separation

Communications Minister, Stephen Conroy, is confident Telstra and the competition watchdog will resolve fears over the telco's structural separation plans.

The Australian Consumer and Competition Commission last week said it could not accept a crucial aspect of Telstra's move to structurally split its retail and wholesale arms.

The move is essential to the federal government's plan for the successful rollout of the $35.9 billion National Broadband Network (NBN).

Speaking in Sydney on Wednesday, Senator Conroy said he was confident Telstra and the ACCC could resolve the matter, allowing the NBN to go ahead.

"The reason we set this process up was so that the independent regulator could make its judgments and what both (Telstra chief executive) David Thodey and (ACCC chairman) Rod Sims have both said publicly, is that they believe they can resolve the issues," he said Wednesday when he switched on the first newly built homes to the NBN.

He added he was not involved in the negotiations but admitted the future of Telstra's planned separation ultimately rested with the ACCC.

The ACCC said it was worried Telstra had no compliance plan for its commitment to separate the two arms from 2018, while the telco's undertaking did not address legislative requirements.

"I'm in the hands of the independent regulator as is the process the government put in place," Senator Conroy told reporters.

He said connecting the first greenfield estate to the NBN was a "significant milestone" for the national rollout.

"Unlike the first three sites that we have been launching across the country, the network here at Bunya is not a trial site," he said.

"Every person who moves in is able to access the service from a retail service provider."

NBN Co said it had already received more than 2200 new development applications across Australia for fibre-optic infrastructure across the country.

Government policy requires NBN Co to be the fibre-optic provider "of last resort" for new housing developments.

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