Australian Government Tells Telecom Giant Telstra to Break-up

If Not, Forget Acquiring New Wireless Broadband Spectrum

1 min read
Australian Government Tells Telecom Giant Telstra to Break-up

The Australian Government Communications Minister Stephen Conroy in a surprise announced today that Telstra, Australia’s largest telecommunications company, must "voluntarily separate its wholesale and retail arms it will be prevented from acquiring new wireless broadband spectrum,” says The Australian.

 “Telstra is one of the most highly integrated telecommunications companies in the world across the fixed-line copper, cable and mobile platforms,” said Minister Conroy in the press release concerning the break-up. The break-up, he says, will also promote competition and strengthen consumer safeguards.

“These fundamental reforms address the long-standing inadequacies of the existing telecommunications regulatory regime. They will drive lower prices, better quality and more innovative services," Minister Conroy said.

Telstra’s rivals hailed the move.

Telstra’s stock dropped about 4% after the announcement.

Minister Conroy did not indicate whether he thought the decision would help him better “boil the ocean,” which seems still one of his objectives.

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