Cowan questions Telstra plan

DEPUTY WA Premier and Regional Development Minister Hendy Cowan has expressed concern at Telstra’s plans to establish a separate regional telecommunications business unit.

Mr Cowan told a recent Western Australian Municipal Association breakfast that he had mixed views about such developments.

“Provided it is resourced adequately, it has potential for positive results for regional communities and businesses,” Mr Cowan said.

“If it is not, then the separation of regional telecommunications networks may become a barrier to the adoption of new technology in regional Australia.

“Telstra has been put on notice by the competition introduced into regional WA by the Statewide Telecommuni-cations Enhancement Program and by the interest of other carriers in the establishment of satellite communications for mobile telephony, Internet and two way video communications.

The privatisation of Telstra should only be pursued by if quality and reliability of service to regional customers is assured.

“The standards should be accompanied by legislative or regulatory safeguards with real teeth,” he said.