The Australian Competition and Consumer Commission (ACCC) has announced it has accepted Telstra’s structural separation undertaking (SSU) and approved its draft migration plan.

 

The announcement comes less than a week after the teclo submitted its revised draft of its SSU.

 

Telstra's structural separation responds to longstanding competition concerns arising from Telstra's involvement in both wholesale and retail markets.

 

"The ACCC's acceptance of Telstra's undertaking marks a significant milestone in the structural reform of the telecommunications sector," ACCC chairman Rod Sims said.

 

"This SSU has been the subject of extensive consultation and public discussion. The ACCC acknowledges contributions from industry, as well as the preparedness of Telstra and NBN Co to modify the undertaking in response to legitimate concerns. 
 
"In particular, Telstra has made substantial improvements to its interim equivalence and transparency commitments, which are intended to ensure that wholesale customers gain access to key input services on an equivalent basis to Telstra's retail business units during the transition to the National Broadband Network."

 

In backing the SSU, the ACCC said it expects the measures will result in greater competition in the telecommunications sector as the industry moves to the new wholesale-only network.

 

Telstra CEO David Thodey said Telstra would now work with the Government and NBN Co to quickly finalise the remaining largely procedural matters so the Definitive Agreements could be implemented.

 

“There are a small number of matters left to finalise with the Government, including NBN Co shareholder approval and Telstra receiving Ministerial waivers from the legislative requirement to divest our HFC network and our share in FOXTEL.

 

“The SSU comes into force once these waivers are received,” Mr Thodey said.

 

The SSU fulfils two roles:

  • it commits Telstra to structural separation by 1 July 2018. This will occur through the progressive disconnection of fixed voice and broadband services on Telstra’s copper and HFC networks, and subsequent migration of these services onto the NBN; and,
  • it sets out the various measures which Telstra will put in place to provide for transparency and equivalence in the supply of regulated services to its wholesale customers during the transition to the NBN.

 

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