Australian Commu Min Plays Down Telstra Purchase Of Nine
March 24, 2002
FROM THE ARCHIVES: March 24, 2002
DOW JONES NEWSWIRES
SYDNEY -- Australian communications minister Richard Alston Sunday downplayed the prospect of Telstra Corp. (TLS) buying Australia's Nine Network, but said there is nothing in the country's cross media laws to stop the telecommunications company acquiring any existing media player.
After a week of escalating rumors about Telstra's interest in buying Nine from Kerry Packer's Publishing & Broadcasting Ltd. (A.PUB), Alston told the Ten Network's Meet The Press program he had "no reason to think that Telstra is actively investigating" such an acquisition.
"But they may well be interested in going further in terms of content acquisition," he said.
"Telstra, understandably, is interested in not only being a passive carrier, but also having some control over the content to ensure that its carriage network is the preferred one," he said.
The government owns 50.1% of Telstra.
Turning to Thursday's introduction of legislation designed to ease media ownership rules, Alston admitted there is "still a way to go," when asked if he is confident of getting anything through the Senate. The Australian Labor Party and the much smaller Australian Democrats control the upper house and are set to vote against the conservative government's plan to offer exemptions on cross media laws.
But Alston said he wouldn't assume anyone's position is final.
"There's always a lot of jostling that goes on. It may well be there are particular aspects that need to be further discussed with different parties," he said.
Allan Fels, chairman of the Australian Competition & Consumer Commission, meantime told the Nine Network's Business Sunday program that the ACCC could only assess a Telstra purchase of a media asset in terms of the Trade Practices Act and the impact on competition.
"Telstra is not currently a competitor to a television station or to a newspaper, so you wouldn't start from the position that them entering this sector is going to reduce competition."
However, Telstra's 50% shareholding in pay TV concern Foxtel would be a consideration, he said.
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Updated March 24, 2002 12:57 a.m. EDT
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