Telstra warns Senate on NBN regulation

Consumer advocates have called on the federal government to
rethink plans to privatise the national broadband network (NBN).
The $36 billion project is scheduled to be privatised within
five years of its completion, although parliament would have to approve any
sell-off.
With the rollout expected to take at least another seven
years, the Australian Communications Consumer Action Network is urging the
government to be mindful of creating a private-sector monopoly.
"There are still significant groups in Australia that have
some great concern about the privatisation of public utilities," chief executive
Teresa Corbin told a Senate hearing in Sydney.
The consumer lobby group said privatisation should be
approached with great caution, adding that a private monopoly could become too
politically powerful.
Telco giant Telstra has concerns of a different kind,
arguing too much regulation in the sector could stifle competition.
"Requiring regulation of new broadband networks before they
are even built will create a powerful disincentive to investment in
infrastructure and will discourage competition with NBN Co," Telstra said in a
submission to the Senate inquiry.
Telstra also has called on the government to ban the NBN Co,
the company building the network, from controlling an internet service
provider.
NBN Co would be allowed to control a retailer for up to a
year, but Telstra argues this would breach the government's policy of making it
a wholesaler only.
"There does not appear to be any meaningful justification
for it," Telstra said.
The Senate hearing is continuing at the NSW Parliament House
in Sydney.
Telstra shares closed down 1.44 per cent to $2.73, against a
0.83 per cent fall in the benchmark index.