New Telstra bush licence is 'a fraud'

August 4, 2005 - 3:36PM

New licence conditions for Telstra are nothing more than a stunt to persuade rural and regional Australians to support the full privatisation of the telco, the federal opposition says.

Opposition communications spokesman Stephen Conroy said the licence condition to ensure Telstra kept a presence in the bush would do nothing to improve services in regional Australia, including cheaper phone prices or access to broadband internet.

He said it was the third time Communications Minister Helen Coonan had made a commitment to a local presence plan for Telstra.

"It's a real fraud on many, many people who have been crying out for improved services," Senator Conroy told reporters in Melbourne.

"This is a government who is committing today to maintaining the existing levels of services.

"If you talk to regional and rural Australians what they say is we want improved services, cheaper prices and better access.

"Today is a real fizzer and a real disappointment from Helen Coonan and (Nationals leader) Mark Vaile."

Senator Conroy described the new chief executive of Telstra Sol Trujillo - who this week attacked Australia's competition laws as belonging to the last century - as a "dinosaur" who did not understand the importance of Telstra to regional Australians.

"We need a tough regulatory environment," Senator Conroy said.

"Telstra are almost a monopoly in regional and rural Australia and they absolutely need tough regulation.

"So Mr Trujillo should start listening and stop talking."

Senator Conroy said the joint announcement by Senator Coonan with Mr Vaile confirmed that the Nationals were sell-outs who "ultimately would roll over when you wave a large bucket of money at them".

He said a bidding war was now underway to see how much money the Nationals could drag out of Prime Minister John Howard.

"It's no surprise that they're going to sell out regional and rural Australians faced with a choice between delivering a competitive market that will actually drive prices down and get cheaper access."

