Telco reform to tackle inflation

Prime Minister Kevin Rudd’s election promise to roll out high speed broadband across the country has the telecommunications industry in lobby mode this week. Rudd initiatives included a pledge to construct a high-speed broadband network and to revamp the telco industry.

Executive director of the Competitive Carriers Coalition (CCC) David Forman said that Australian services are overpriced, which puts pressure on the inflation rate. "The failure of regulation in the telecommunications sector has directly impacted inflation,” he said. “Unless there's urgent reform, Australians will continue to suffer inflated prices well above those experienced in the rest of the world.
 
"Telecommunications represents a sector in where some pressure can be quickly eased with appropriate reforms to drive reinvigorate competition."
 
An anti-Telstra group, the CCC represents smaller telco players such as AAPT, Macquarie Telecom and Hutchison. Telstra has already unveiled its proposal to rolls out broadband in Australia, announcing that it could start construction within 48 hours.
 
Rudd is expected to appoint Senator Stephen Conroy as his communications minister by the end of the week.