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Terria's plan revealed: We want a monopoly
Australian businesses and consumers would be the big losers under a Terria-built National Broadband Network, after its shock revelation today it would demand a guaranteed monopoly.
Group Managing Director for Telstra Public Policy and Communications, Mr David Quilty, said Terria's stunning demands showed it wanted to take Australia back to the last century and re-monopolise the nation's telecommunications industry, depriving Australians the choice and innovation produced by true infrastructure competition.
"While Terria crows about fairness and encouraging competition it is really the monopolist hiding in the shadows," Mr Quilty said.
Terria's bid manager, Mr Michael Simmons, said in today's The Australian:
"Our proposition to the Government is that no party be allowed to expand the network and operate in competition to the national broadband network ... you must preclude any alternative broadband network," Mr Simmons said.
Mr Quilty said the comments from Mr Simmons were blatantly hypocritical and risked making Australia an international laughing stock.
"For months Terria has been claiming that Telstra wants a monopoly and that Terria is committed to competition. Today Mr Simmons has revealed that Terria's bid relies on the Government granting it a guaranteed monopoly," Mr Quilty said.
"Terria's hypocrisy is outrageous and stands in stark contrast to Telstra's position - in addition to our strong commitment to open access, we welcome and encourage infrastructure competition because of the benefits it brings to customers.
"It is recognised around the world that to improve competition and innovation you need to encourage infrastructure competition, not remove it altogether.
"Providing one company with a guaranteed monopoly certainly has not been introduced anywhere in the world and if it happened here Australia would be turned into the pariah of global telecommunications.
Mr Quilty said if Terria's business case relied on Telstra being an anchor customer on its network, it needed to go back to the drawing board.
"If Terria were to win the bid, Telstra would compete hard using its existing network assets and the resources available to provide consumers and businesses the choices they deserve."
Reference Number: 242/2008
