Telecommunications Act 1997

The functional separation principles are as follows:

the principle that there should be equivalence in relation to the supply by Telstra of regulated services to:

Telstra’s wholesale customers; and

Telstra’s retail business units;

the principle that Telstra should maintain:

one or more retail business units; and

a wholesale/network business unit;

the principle that Telstra should maintain arm’s length functional separation between:

its wholesale/network business unit; and

its retail business units;

the principle that Telstra should have systems, procedures and practices that relate to:

compliance with a final functional separation undertaking; and

monitoring of, and reporting on, compliance with a final functional separation undertaking; and

the development of performance measures relating to compliance with a final functional separation undertaking; and

independent audit, and other checks, of compliance with a final functional separation undertaking;

the principle that Telstra’s wholesale/network business unit should not consult Telstra’s retail business units about:

proposed services to be supplied by Telstra’s wholesale/network business unit; or

proposed developments in connection with services supplied by Telstra’s wholesale/network business unit;

In determining the principle of equivalence covered by paragraph (1)(a), regard must be had to whether:

the terms and conditions relating to price or a method of ascertaining price; and

other terms and conditions;

Subclause (2) does not limit the matters to which regard may be had.

To avoid doubt, this clause does not affect the meaning of anything in Part 33.