Australia Network Study Says Government Doesn't Need Telstra

An independent study into the Australian government's planned 43 billion Australian dollar (US$38.94 billion) national high-speed Internet network has found there is a case for a commercial deal with Telstra Corp., but also said that the government could build a viable network on its own. It also recommends the government remain the owner of the network until the roll-out is complete and competitive policy settings are in place. The study does little to clear uncertainty hanging over Telstra, Australia's dominant telecommunications company, but does bolster the government's case for pushing ahead. Australian lawmakers are due to resume debate as soon as next week on legislation that could force Telstra to split its operations into separate retail and wholesale network divisions, potentially bar it from acquiring any new mobile spectrum, and force it to sell its half-share of Australia's dominant pay-television operator, Foxtel, if it doesn't cooperate.