Telstra's Structural Separation Undertaking

Project overview

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On 27 February 2012 the ACCC accepted Telstra’s SSU. The SSU commenced on 6 March 2012. Telstra’s structural separation will occur progressively—through Telstra ceasing to supply fixed-line voice and broadband services over its copper and HFC networks and commencing to supply those services over the NBN as the fibre network is rolled out. The SSU contains a number of obligations that are designed to promote competition during the interim period from the date that the SSU commenced until the NBN fibre network is complete.

Rectification proposals

Under clause 9(a) of the SSU Telstra has an obligation to ensure that particular aspects of retail and wholesale services will be equivalent (the ‘overarching equivalence commitment’). Under Schedule 11 to the SSU, Telstra may report possible breaches of the overarching equivalence commitment and must, no later than 30 days after reporting the possible breach, submit a proposal to the ACCC which sets out the steps that Telstra proposes to take to remedy the possible breach (a ‘rectification proposal’).

The ACCC may accept a rectification proposal or if satisfied that it does not provide an effective remedy for the possible breach, reject the rectification proposal and direct Telstra to take alternative steps to remedy the possible breach.

Related project

Assessment of Telstra's SSU & draft migration plan

More information

Industry reform

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