TERRiA Proposal Vital For Competition

October 27, 2008: The CEO’s of Primus Telecom (Ravi Bhatia), Optus (Paul O’Sullivan), Macquarie Telecom (David Tudehope), Internode (Simon Hackett) and iinet (Michael Malone) today confirmed their “rock solid” support for the TERRiA proposal to build the new National Broadband Network.

The CEO’s said that the TERRiA bid was vital for ensuring that Australians had the benefits of world-class, competitive and affordable telecommunications and internet services.

“Obviously, each of our companies also has a commercial interest in being able to compete in fixed line voice and internet services.”

“But more importantly, consumers will be denied the benefits of competition if Telstra’s proposals for a vertically integrated, regulation-free network are accepted.”

“All along Telstra has insisted that it will only build the new network on condition that:

·         No separation of network and retail activities is required:

·         It is not required by law to provide other access seekers with  guaranteed equal access to the new Government licensed and part-funded network:

·         It is not subject to price regulation; and

·         It is able to seek a 25per cent return on any investment.”

“While Telstra pays lip-service to the need for open access, it refuses to accept any of the conditions necessary for an assured open access network.”

“If Telstra gets its way, competition in fixed line services is as dead as a door nail.”

“Telstra’s intention is to re-monopolise the industry and destroy competition.”

“TERRiA, on the other hand, is proposing a structurally separated, independent, open access network that continues to be regulated by the ACCC --- in other words, a network that encourages robust competition among both upstream and downstream users for the benefit of all Australians.”

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About TERRiA

TERRiA is a consortium of five major infrastructure based telecommunications companies which will bid to provide Australia’s new National Broadband Network (NBN). It includes iinet, Internode, Optus, Macquarie Telecom and Primus.