It’s time to split Telstra in two.

Another article on ZDNet about Telstra and the FTTN proposal and this time the headline suggests that it is a given that Telstra will need to be split in two if it wins the FTTN bid.

Some time back I wrote to the previous communications minister asking why the previous government wasn’t looking at splitting Telstra into a wholesale and retail business. At the time I got a wishy washy answer suggesting that for all intents and purposes, Telstra was already split in two.

We all know thats a load of rubbish, and I can only hope that over the next few months, someone in the Labor party has the guts to stand up and say what needs to be said, that Telstra should be forced to split into two.

I would go as far as to suggest that the wholesale arm should be regulated such that a single retail telco can only hold a small percentage of its stock, and perhaps the business should be audited by government each year to ensure a level playing field in telecoms service.

The vast sums of money that could be saved from having a single front end telecoms network would be enormous. ISP’s could stop spending large wads of cash fitting out exchanges with their own equipment, and could concentrate on the back end stuff that sets them apart.

Here’s hoping some common sense prevails for a change.

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