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The Forum > Article Comments > Telstra: when is a subsidy not a subsidy? > Comments

Telstra: when is a subsidy not a subsidy? : Comments

By Ben Rees, published 29/8/2005

Ben Rees asks some important questions on the Telstra sale.

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Given this big "bucket of money for the future", and given its public money allocated to provide infrastructure, why shouldn't other private telcos hold out their hands? Why not flick some cash to Vodafone to wire up Birdsville for G3?

In fact, I think the good bergers of Coolah could do with wireless internet access, so perhaps I should ask for a measly $50 million out of the fund to put them on air! Bargain, I might have a bit of a problem with my shareholders though, my wife might feel the 50 mill could be better used around the house. Still its worth a thought!

There is no way private enterprise could ever profitably provide infrastructure to remote areas, so if we don't have a public entity with the capability and direction it will never happen.

I feel very sorry for Oz rural communities in the next 5-10 years. They were only just starting to catch up with ADSL etc, fat chance of ever seeing fibre optic, CDMA EVDO high speed mobile internet et al.
Posted by Peter King, Thursday, 1 September 2005 7:01:41 PM
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The pattern of privatisation has been that the Multi Nationals take a large if not controlling interest in the infrastructure, borrow to fund and use the interest to see they do not make large profits for collection inside oz. Quiet apart from the revenue flow, is the question of foreighn ownership of this kind of infrastructue, great for defence I suppose, be interesting to see how Singapore may veiw our request for access in difficult times.

In the event they can not obtain a satisfactory return they go back to the Gov ( the people) for a top up.

There is no logic, just idiology, the real question is how do we change it.

Great comments from you all, even the odd devils advocate.

Nev
Posted by Nev, Thursday, 1 September 2005 7:55:10 PM
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Rob88 said in relation to his move to Optus “Small towns that were uneconomic in ADSL will become a commercial proposition with wireless - Competition and lower prices will follow”. Rob avoids all the engineering issues here like how many customers in a given area can go wireless at a given time. Also how far will the customer wireless link go in the bush and how is the regional traffic connected beyond that cell and so on.

Rob may recall we once had a two airlines policy in all regions before we had a three carrier mobile phone policy that started to put independent radio towers on every hill. Rob; competition policy can kill airlines. What a mess we had just after Virgin arrived! Perhaps Virgin will fall over too. Recall; Rex picked pieces in the country regions like they were hot potatoes.

Mate; I don’t trust any policy rhetoric that is flogging another old horse to throw off its legs in the race for pots of gold under visionary rainbows with the notice” Final Price”. In this case we pay for what we get; not the other way round. A company stripped of options or assets and a backbone stripped of flesh is no use to anyone.

A better policy was to flog it off warts and all with no strings attached to obtain a decent float then offer the proceeds back to the states and their regions to fix what ever problems they wished. That way we might have seen some service improvements here and there with out all the red tape.

But I say it again it’s time somebody kept an eye on who is training the next generation of practical people we need to keep working out in the bush. Invest in youth we must to have technology at our fingertips in our old age.
Posted by Taz, Friday, 2 September 2005 3:11:43 PM
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What a lot of schmuck we've been reading
Now that the cat is out of the bag re Telstra i.e delving into Reserves to pay by-yearly dividends, poor management decisions, out-dated equipment, obsolete technology, complaints growing-by-the-minute..and JH professing it's unlawful to reveal these absolutely deplorable FACTs, because it was 'supposed-to-be-secret' between US import Sol Tjuillo and his 3 US muskateers - who have been branded as 'talking down' the mythical Telco's profitability, and 'shooting-in-the-foot' the $3 Billion promised to Nat - poor Banarby Jones.
The coffers just weren't there BJ. Not only were you and your Country mates misled another time by JH. You got dumb-schmusked once again !
Meantime, JH is trying once again to con all the Mum's and Dad's into buying Telstra shares at $5.30, knowing it's not even worth $ 3.30 - specially when Sol's right-hand man delivers a " wouldn't even recommend it to his Mother " - my, it say's it all.
Another of JH's ploy is offering Asian buyer's, particularly the Singaporean's - another crack at Telstra, claiming good value, and ramping up 'Foreign Investment', criteria, another notch when hitherto it was considered unpalatable, unlawful,against Australia's interest.My, how we switch side's when it comes to flogging a dead horse !
I sold my 2800 shares ages ago. The writing was on the wall when Steve Vizard profitered from insider-trading, and the ASIC failed to followup his unconsciousable conduct, as a member of Telstra's Board. Adding insult, JH admitted he personally appointed SV.
As well, Sol Tjuillo is/was another of JH's appointments.
C'est la vie Oz style !
Posted by dalma, Thursday, 8 September 2005 2:36:23 PM
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Dal,

Jh has turned lying into an art form, the dreadful little lawyer.
ceo mcgauchie once in charge of the nff and playing a role on the wharfs a few years ago would be yarning with the Feds dayly. I wonder if they have the ability to hood wink us at the next election. Trouble is no real alternative offered. It was labour who kicked off this whole free market push and they do not sound a bit like they have moved. Forget telstra, the deal is done....is it Australia Post next? We did own a bank as well once.

Nev
Posted by Nev, Thursday, 8 September 2005 8:43:39 PM
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Nev wrote: "Trouble is no real alternative offered. It was labour who kicked off this whole free market push and they do not sound a bit like they have moved."

This kind of muddled thinking has helped demobilise much of the potential opposition to John Howard and has therefore helped him to win three elections since 1996.

What alternative do you propose, other than having Howard and his successors remaining perpetually in power, if you are not in favour of Labor winning the next election?

Of course life won't be a bed of roses if Labor wins government (as it definitely was NOT from 1983 until 1996), but at least we will have taken the first necessary step to get out of the political rut we have been in since 1996.
Posted by daggett, Thursday, 8 September 2005 10:07:17 PM
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