Senator Kate Lundy, Shadow Minister for Information Technology
and Lindsay Tanner MP, Shadow Minister for Communications
The Senate Competition in Broadband Services Inquiry Report has recommended that Telstra exit from its Foxtel investment.
The report agrees with the ACCC that Telstra’s 50% ownership of Foxtel impedes competition in telecommunications and broadband.
The report recommends that the Howard Government take immediate action to create a more competitive broadband industry.
But new Communications Minister Helen Coonan rejected calls for Telstra to get out of Foxtel just one week into her job.
Australia’s broadband uptake is 20th in the OECD. Despite recent spikes in uptake our broadband uptake remains well behind key competitors like the United States, Japan, Korea and Canada.
Labor is committed to getting telecommunications competition and regulation right. New Minister Helen Coonan confirmed last week that the Government’s main priority was to fatten Telstra up for privatisation.
This majority Senate report provides a way forward for the new Minister. The ACCC and now the Senate Communications Committee have found a case to get Telstra out of Foxtel. The Senate Committee identifies the productivity commission as an appropriate body to consider further reform. The Minister must respond constructively.
For further information contact Lindsay Tanner or Peter van Vliet on (03) 9347 5000 or 0417 147 932. For comment from Kate Lundy call Adina Cirson on 0418 488 295 or 02 6277 3334.
