As you are aware, the NSW Government has become an active participant in the lead up to deregulation of the telecommunications network. The most notable initiatives to date have been promoting the case for establishment in NSW of the national headquarters of the successful second carrier and the development of an integrated government private network to serve all State administrations.

Strategically, the fundamental task faced by the Government resides in having effective co-ordination strategies in place, both operationally and in terms of policy development. NSW efforts in this regard have been undertaken by the Telecommunications Unit (TCU) within the administration of our colleague, the minister for Administrative Services.

For the State's part, the administrative complexity associated with advancing these important reforms is made apparent when it is realised that the establishment of the new telecommunications regulatory network in Australia requires the State Government to deal with a number of different Commonwealth agencies. These dealings would relate to such issues as regulatory standard-setting and radio frequency spectrum management.

My attention has recently been drawn to the problems faced by the TCU in relation to managing the co-ordination of this task. For example, it is understood that Telecom has sought to negotiate direct with a number of individual agencies on the question of long-term service contracts. At the same time, there is an overriding need to ensure that the case for promoting NSW as the logical location for siting the headquarters of the second telecommunications carrier is properly managed.

Accordingly, I have given approval to the TCU undertaking additional responsibilities to co-ordinate the following:

State negotiations involving all telecommunications asset' matters with the second carrier; all contractual negotiations with Telecom for access to the Government's telecommunication assets (this includes continued administration of contractual arrangements, for Telecom services as outlined in my previous Memorandum 90-66); and all dealings between the NSW Government and the Commonwealth Government concerning Telecommunications.

Detailed requirements are set out in the attached paper. I should be pleased if you would bring these matters urgently to the attention of all agencies within your portfolio and I would appreciate your assistance in ensuring co-operation with the new requirements.

Agencies may obtain further information by contacting Gary Donald, Director of the Telecommunications Unit, on (02) 339 7701.

Nick Greiner MP