THE Coalition has formalised its opposition to government plans to force Telstra to split in two, but says it has an open mind on other aspects of the consumer safeguards legislation that contains the threats to the besieged telco.
The resolution of the joint Liberal and National party rooms yesterday leaves the door open for the government to separate the legislation into two parts, with the passage of non-Telstra aspects likely to succeed. Those parts include boosting Australian Competition and Consumer Commission powers to determine wholesale access rules for retail telcos, stringent universal service obligation rules to protect payphones and a reshaped customer service guarantee to offer compensation for slow service.
Last night the government was considering its options on the future of the bill, with a spokeswoman for Communications Minister Stephen Conroy repeating the government's position that it ''will always have an open mind to amendments that it believes will improve the bill''.
Telstra shares closed at $2.91 yesterday, sitting at their lowest closing price for a third straight day.
Telstra is this week meeting to reassure debt investors in Europe of the company's prospects, a fortnight after ratings agency Fitch joined Moody's in placing Telstra on a negative outlook.
The Telecommunications Legislation Amendment (Competition and Consumer Safeguards) Bill is due for debate in the Senate on Thursday, although it is possible debate on other items of legislation will prevent its introduction, and almost certainly a vote.
A senior Coalition source said all Liberal and National senators were committed to honouring the position, minimising the prospects that a senator might cross the floor to give the government the final vote it needs to secure the passage of the Telstra aspects of the legislation.
The contentious aspect of the legislation would force Telstra to split its retail and wholesale operations, or choose between its 50 per cent stake in Foxtel and hybrid fibre coaxial cable networks and gaining access to new wireless spectrum.
In explaining the Coalition's opposition to the forced break-up of Telstra, shadow communications minister Tony Smith said the legislation was a ''deliberate assault'' on Telstra and its 1.4 million shareholders and 30,000 employees. He said Telstra's shareholders had every reason to be outraged.
