Telstra split 'no hindrance to fast broadband roll-out'

The NBN roll-out should not be delayed. Photo / Thinkstock

Concerns over Telstra's blueprint for the structural separation of its retail and wholesale arms should not delay the National Broadband Network (NBN) roll-out, the competition watchdog says.

The separation is a key part of the federal Government's plan for the NBN.

But the Australian Competition and Consumer Commission (ACCC) is worried the telco has no compliance plan for its pledge to structurally separate the two arms from 2018.

The commission's preliminary view is that the undertaking provided by Telstra does not address legislative requirements.

Chairman Rod Sims said there was serious work to be done.

"[But] this is something that is capable of resolution, it should not, need not, hold things up," he told ABC Radio yesterday. "On the other hand, the undertaking we are seeking is an important one, it's not a walk in the park."

Mr Sims said that if the ACCC did not accept Telstra's plan, the telco might have to go back to the drawing board.

"If the structural separation undertaking is not accepted then Telstra needs to step back and revisit their alternatives," he said. "The key focus should be getting what's in front of us right rather than contemplating new directions."

The ACCC released a discussion paper on Tuesday asking for comments from industry stakeholders and consumers on Telstra's structural separation undertaking and draft migration plan.

Mr Sims said the commission's main concern was how Telstra would maintain equivalent services for customers.

The commission's initial view was there needed to be a clear and enforceable commitment to an "equivalence of outcomes" that enabled wholesale customers and Telstra's retail businesses to gain access to key input services of equivalent quality and functionality.

The commission also had major worries about arrangements between Telstra and NBN, especially the ability of the two to change conditions of their agreements without more scrutiny by the competition overseer.

The telco has said it would work with the ACCC to obtain acceptance before Telstra's annual general meeting on October 18.

- AAP