The Estens Inquiry Into Regional Telecommunications Services Report

Media Statement - 8 November 2002

The Estens Inquiry into regional telecommunications services is a complete whitewash. As expected, Dick Estens has delivered a sham report paving the way for John Howard to privatise Telstra.

The Inquiry was dominated by two National Party members, and conducted no public hearings. The report has blatantly ignored the bulk of its own submissions with its absurd claims that regional mobile services are adequate, a rise in regional fault levels is reasonable, and regional Internet access is equitable with the cities.

The Government's welcoming of this report and its continued pursuit of the full privatisation of Telstra just shows how out of touch it is.

The Inquiry has also found that consumer protection measures are adequate, disregarding the everyday experiences of telecommunications users throughout Australia.

The real picture for telecommunications services in regional Australia, as demonstrated by the Estens submissions, is patchy and inadequate mobile phone coverage, low Internet data speeds, constant Internet line drop-out and inadequate consumer protection.

The Inquiry's key findings have ignored the parlous state of the Telstra network as demonstrated by the ‘Seal the CAN' debacle. The findings have ignored the massive reductions in Telstra staff numbers and the decline in capital investment of $800 million over three years.

Telecommunications problems in regional Australia are so serious that even this totally flawed report concedes that there are still major problems in some areas, including increased faults in the network over the past two years and problems with broadband access.

Recommendation 8.1 states that Telstra should only maintain its local regional presence when it is "compatible with Telstra's commercial interests". Recommendation 9.1 states that the Government, not Telstra, should pay for regional telecommunications improvements.

These findings reveal the Government's true agenda - a privatised Telstra operating just like the banks, with the Government left behind to pick up the pieces.

The Estens report will ring hollow in regional Australia. Australians don't want Telstra sold, because they know services will decline and prices will rise.

The Estens report suggests that Telstra's services can be "future-proofed" through the establishment of a trust fund. The only fund that Australians can trust to ensure they get the services they need is their existing majority ownership of Telstra

Only Labor can be trusted to keep Telstra in majority public ownership.