Credit: Dreamstime
The Australian Competition and Consumer Commission (ACCC) has issued a draft determination proposing to authorise Telstra and NBN Co and their related entities to amend agreements that they entered into between 2011 and 2014 which facilitated the rollout of the national broadband network.
The existing agreements, authorised under the statute, provide the necessary legal certainty that certain conduct would not contravene Australian competition laws. This conduct is not the subject of any previous or existing ACCC authorisations.
The Telstra Group is proposing to undertake a restructure of its organisation and is seeking to incorporate its related entities into the existing agreements with the NBN through an amendment.
Under the proposed authorisation, entities across the restructured Telstra group will be able to continue to give effect to their existing rights and obligations owed to NBN Co.
“In our assessment, we are limited to considering the potential public benefits and detriments that flow from the restructure and not from any existing agreements,” ACCC Deputy Chair Mick Keogh said.
“The Telstra restructure is likely to result in some public benefits including increasing value to the shares widely held by Australian retail investors, largely by improving commercial opportunities.
“The ACCC understand that in the absence of the proposed authorisation, the Telstra Group’s restructure will not proceed, and they will be bound by existing agreements with the NBN and the statutory protections from the Telecommunications Act."
The ACCC is now seeking submissions from interested parties in relation to its draft determination before making a final decision in the next couple of months.
