Letter to TLS shareholders from Company Secretary Carmel...

Letter to TLS shareholders from Company Secretary Carmel Mulhern.

Extracts...

There are two important matters that we want to bring to your attention:

1). the Federal Governments proposed regulatory reform package (Telecommunications Legislation Amendment Bill) for the telecommunications industry looks likely to be debated in the Senate in thesecond or third week of March;
and
2). last week, the Federal Government released the (NBN Co Exposure Draft Legislation) that could significantly alter NBN Cos wholesale-only business model.

Telecommunications Legislation Amendment (Competition and Consumer Safeguards) Bill 2009

Telstras position on this Bill has not changed: while we support the Governments National Broadband Network (NBN) vision and sensible reforms for our industry, we have always said this legislation is likely to destroy shareholder value and makes an agreement with NBN Co and the Government harder to achieve. In particular:

* denying Telstra access to spectrum will harm not only shareholders, but also consumers especially those in rural and regional Australia who rely on Telstra for their mobile services;

* the unprecedented and largely unconstrained powers the legislation gives the ACCC and the Minister send a negative signal to investors in our industry and this country; and

* functional separation could cost Telstra $1 billion and take five years to implement, damaging customer service and providing no real benefits to consumers.

In closing, let us reassure you that the interests of our investors, customers and staff will remain paramount throughout the negotiations. We are strongly representing your interests to all parties. Our concerns about the potential shift in NBN Cos scope will be strongly and clearly stated in our submission on the draft legislation due on 15 March. As ever, we welcome your comments, so please contact us at [email protected].

Yours sincerely
Catherine Livingstone AO David Thodey Chairman Chief Executive Officer



...At last Telstra get to the Root of dealing with this bunch of incompetent & irresponsible *****.

No doubt the Canberra mob have already drafted a 'Sorry' message to cover them when the bills and blunders of NBN later become obvious.