Telstra: We hear separation rumours

Is the government manoeuvring towards a structural separation of Telstra?

Telstra's Group MD for Public Policy and Communications says they've heard rumours but no one from the government has spoken to them about the prospect. Nor have they been consulted about integrating the winning National Broadband Network bid into the Telstra network.

Does this indicate that the government's broader plan is to announce a split of Telstra's retail and wholesale divisions as a means of facilitating the build of the NBN?

In this week's Twisted Wire Phil Dobbie talks to David Quilty, who says that that approach is not necessary and is likely to be counter-productive. Does Quilty see the ACCC's threatened court action as a forerunner to separation? If the outcome is unfavourable for Telstra will the company consider legal action of its own undertaking?

It's a complex issue. Add your thoughts to the debate in the comments section at the end of this post.

Next week Optus shares its views on the issue. Why does it see structural separation as being necessary?

Phil Dobbie is a broadcaster and businessman with more than 15 years commercial experience across the telecommunications, internet, tourism, advertising and radio industries. Dobbie also provides a daily podcast for our sister site BNET.com. Join him for BTalk Australia, where he provides a lively and insightful view on business issues, adding his blend of irony and humour to the discussions.