Telstra To Be Broken Up
By: Ainsley Brown
The Australian telecommunications group Telstra is to be broken up in a move to spur competiotion.
The telecommunications giant, according to Australia’s Communications Minister, Stephen Conroy, would be forced to separate its retail and wholesale arms if it does not do so voluntarily. The government – a 12% part owner – for its part hopes Telstra will be co-operative and follow the voluntary route.
This move by the Australian government, along with attempting to spur competition generally in the telecommunications sector is also an attempt to update the country’s dated telecommunications infrastructure. The government of PM Kevin Rudd announced today plans fro a US $37 billion national broadband network. This high speed fiber optic network would leave much of the country’s copper wire network – in the hands of Telstra – redundant.
