Telstra CEO Believes ACCC Will Eventually Favour its SSU
Telstra Corporation is far from being alarmed over the assessment issued this week by the country's consumer watchdog, stating that the present form of its structural separation undertaking (SSU) leaves more room for improvements.
That is precisely the point, according to Telstra chief executive David Thodey, who also noted that along with the latest viewpoint made public by Australian Competition and Consumer Commission (ACCC) Rod Sims, the idea of filling up the voids or whatever is lacking in the SSU is ever present.
"The ACCC has raised a number of concerns but they do not really come as a surprise to us at all," said Thodey on Friday as reported by tech news site Computerworld.
The Telstra CEO added that despite the apparent shortfalls pointed out by ACCC, he is of the idea that the country's premier telco enjoys "a positive discussions with the ACCC for a number of months now and we were aware of the issues that the Commission has raised."
Picking up from the reported take by Sims that Telstra's issues with the regulatory body is definitely fixable, Thodey said that the company is more than willing to implement adjustments that are beneficial to the interests of its investors while at the same adhering to the recommendations laid out by the ACCC.
"We too believe the issues can be resolved in away consistent with our principle of protecting shareholder value and the company will continue to work closely with the ACCC to address the concerns with a view to obtaining acceptance to the structural separation undertaking and draft migration plan," Thodey was quoted by Computerworld as saying.
He also expressed confidence that all changes can be implemented before Oct. 18 this year, by which time Telstra will hold its annual shareholders meeting and where the company is expected to present its deal with the federal government relative to the full roll out of the National Broadband Network (NBN).
While a vote may be held around that time, Thodey conceded that the "definitive agreements with the NBN Co and the Commonwealth would still be subject to acceptance by the ACCC of the SSU and approval of the draft migration plan."
Highlighted as major concern of ACCC is that Telstra's SSU failed to meet legislative checkpoints that essentially call for the company's full structural split by 2018.
"The ACCC's main area of concern, however, relates to the adequacy of Telstra's proposed interim equivalence and transparency measures," Sims was quoted as saying in the ACCC report.
Sims stressed that once 'equivalence of outcomes' have been assured by Telstra, then both its wholesale and retail business would be more characterised by complementing functionality and quality, with the potential benefit of attracting government endorsement and less supervision by the ACCC.