ACCC Gives Authorization For Telstra's Structural Separation Undertaking

Australia’s competition watchdog Tuesday authorized Telstra’s structural separation undertaking (SSU) and its migration plan. The Australian Competition and Consumer Commission (ACCC) noted the undertaking marks a significant milestone in the structural reform of the telecommunications sector. The application was necessitated by the 2009 legislative framework that outlined a range of telecommunications reforms proposed by the Federal Government. The structural separation comes after concerns were raised over Telstra’s involvement in both wholesale and retail markets.

Telstra had earlier submitted its final revised Structural Separation Undertaking to the ACCC as it moves to secure its role in the National Broadband Network (NBN). The undertaking implements structural separation through migration to the national broadband network. ACCC chairman, Rod Sims, said the SSU has been the subject of extensive consultation and public discussion. The final SSU involved contributions from industry and Telstra and NBN Co’s efforts to modify the undertaking in response to legitimate concerns, said Sims.

The ACCC expects the undertaking to result in greater competition within the telecoms markets as the industry embraces the new wholesale-only network. Prime Minister Julia Gillard noted that this will [[xref: http://www.computerworld.com.au/article/416822/telstra_split_win_consumers_pm |benefit consumers|Telstra SSU]] as more effective competition in telecommunications markets will create improved service offerings. The approval guarantees the delivery of universal pricing across Australia through the NBN.