Telstra's incoming Group Managing Director, Public Policy and Communications, David Quilty, today expressed dismay that Federal Opposition Communications spokesman Bruce Billson had called for the National Broadband Network to be structurally separated, a move that would effectively mean breaking up Telstra into unworkable pieces.

At a forum in Sydney, Mr Billson suggested that the National Broadband Network be structurally separated, a bureaucratic solution that has failed wherever it has been tried overseas.

“Anyone calling for the National Broadband Network to be separated is calling for Telstra to be separated given that the National Broadband Network is essentially a major upgrade to part of Telstra’s existing network,” Mr Quilty said.

“Telstra has made it 100 per cent clear that if further separation is required, it will not build the National Broadband Network. Overseas experience has already proven that separation does not work. It increases costs, reduces efficiencies, limits future innovation and, most importantly, kills off investment.

“Telstra is puzzled by Mr Billson's reported comments, given that this morning the Office of the Leader of the Opposition confirmed that structural separation of Telstra is explicitly not Coalition policy.

“It would be totally irresponsible for Mr Billson to suggest that Telstra should be further separated, given that the Coalition sold shares to 1.4 million shareholders – who paid billions of dollars to the government as part of the T3 process only a few months ago.

“Telstra is not and will not be a political play thing.”