Australia regulator calls for big changes to Telstra separation

Reuters News
|
Posted: Aug 30, 2011 12:10 PM

SYDNEY (Reuters) - Australia's competition regulator voiced objections on Tuesday to the proposed split of dominant phone company Telstra Corp, threatening to upset one of the nation's biggest telecoms reforms.

Telstra recently hammered out an agreement to hand over its fixed-line telecoms infrastructure to a state-run company for use in the government's $38 billion project to build a high-speed national broadband network.

The Australian Competition and Consumer Commission said its preliminary view was that Telstra's separation plan could not go ahead in its current form and called for important changes.

(Reporting by Mark Bendeich; Editing by Ed Davies)