Terria bites Telstra's fibre plans

Demons of the '90s still haunt telcos

Newly crowed CEO of the Terria consortium Michael Egan has taken a swipe at Telstra's National Broadband Network (NBN) plans, criticising the company for its refusal to permit structural separation.

Egan said the rebranded G9 consortium will propose an $8 to $10 billion structurally separated Fibre-to-the-Node (FttN) bid.

"I've got no doubt that if national competition reform had preceded, rather than followed, the telecommunications reforms of the early 1990's, the structure of Australia's telecommunications industry would now be completely different and would be delivering better services at lower prices," Egan said.

"The mistake in the early 1990's was in leaving in place a structure where new telecommunications entrants were left largely at the mercy of the market dominant Telstra.

"Australia can't afford the same mistake being made again which is what will happen if Telstra is allowed to roll out another national network without separating its anti-competitive commercial interests."

The group is expected to re-submit its bid within the next few weeks. Terria has previously said it would be happy with a 13 percent ROI, while Telstra requires 18 percent return.

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Darren Pauli

Computerworld

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