3G Network Regulation Rings Telstra Alarm Bells

Telstra will seek Federal Government reassurance that it has no plans to ask the competition watchdog to regulate its new mobile phone network. Australia’s Communications Minister Helen Coonan was yesterday quoted as saying Telstra would not be allowed to shut its CDMA mobile network, used in regional areas, until its third-generation (3G) network was operational.

Whether it was fully operational would be determined by a “major independent technical audit”, Senator Coonan told The Australian Financial Review.

Telstra spokesman Rod Bruem said the suggestion of possible Government intervention had triggered “alarm” in Telstra management.

“The major concern is … it would be left to the ACCC (Australian Competition and Consumer Commission) to regulate access to the network, rather than let Telstra come to access arrangements through commercial negotiations,” he said.

Telstra confirmed to the stock exchange yesterday it would seek “urgent clarification from the Government” that its 3G network would not be subject to the type of regulation imposed on its fixed-line network. [3G]

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