Telstra separation unlikely to change market, Ovum says

Telecommunications research firm Ovum says the structural separation of Telstra won't necessarily result in as much of a changed market as the government believes.

The comment comes after the Government struggled to pass the structural separation bill through Parliament, a move it argued was necessary for the construction of the National Broadband Network.

"Telstra has been steadily losing market share in broadband for a long time, proving that its competitors have all the access they need to compete with Telstra and generate customer benefit. It is unlikely that this restructure will change this market dynamic much," Ovum research director David Kennedy told ITWire.com.au.

"Of course, the rollout of the NBN will ultimately ensure that the last-mile network is owned and operated by a separate entity, the NBN Co. But in the meantime, Telstra will be required to restructure itself to ensure it treats its own retail operations exactly like it treats its wholesale customers."

The Government is preparing to release the full version of its cost benefits analysis in the coming weeks.

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