Darron CharlesworthTake Control Away From Telstra
April 22nd 2010 10:32
Category: No Category
The announced plans of Telstra to increase its line rental charges for competitors is yet another reminder of the Government’s folly in privatising the service period. Telecommunications is an essential public service and should have remained firmly in government hands. This is not to say there was not room to shed some of the burden – although Telstra’s profits would hardly be considered a burden to taxpayers. Instead the government sold off a very profitable business and created a monster at the same time.
The argument at the time of the Telstra sale was that privatisation would reduce the taxpayers’ liability and generate increased competition. This was never going to happen. As Telstra owns the fixed lines with no other company permitted to set down lines there was never going to be an increase in competition. What is created is a monopoly in private hands continually pressuring the government of the day to allow access charges to be increased. The situation is not a complete loss and can be fixed but not with Telstra in control of the network.
The only solution which can be of public benefit is for the Government to take the line network and all other shared infrastructure and place it back in public hands. Not negotiate, talk, debate, no, no, just take it back and pay-out Telstra by handing them the rest of the shares still in Government hands as payment. Then the Government can work out the cost of running the network and charge all of the users, including Telstra, the same fixed price to access the network. This is the only way that fair competition for all users can be achieved and the public to start seeing the real benefits of competition.
This would also clear the way for the Government to roll out High Speed Internet across the country. With so much still to be done in this area having Government take control and charge equal access to the service the public will have real choice and competition may actually prove to be to the publics’ benefit instead of continually lining Telstra’s pockets.
It this were to happen it is a certainty that Telstra’s shares would drop through the floor. As a customer service entity Telstra would have to be one of the biggest failures in the nation. If choice was actually available either Telstra would have to discover what customer service actually is or face losing business to providers who do understand the concept. This reality would force Telstra into extended legal battles to retain the network. However, it is clear to everyone that having Telstra as monopoly owner of the network is not in the public interest. The latest claim to further increase their hold over over the competition and penalise the public may just be enough to force the Government’s hand and relinquish Telstra of a valuable public asset and essential public infrastructure.
The argument at the time of the Telstra sale was that privatisation would reduce the taxpayers’ liability and generate increased competition. This was never going to happen. As Telstra owns the fixed lines with no other company permitted to set down lines there was never going to be an increase in competition. What is created is a monopoly in private hands continually pressuring the government of the day to allow access charges to be increased. The situation is not a complete loss and can be fixed but not with Telstra in control of the network.
This would also clear the way for the Government to roll out High Speed Internet across the country. With so much still to be done in this area having Government take control and charge equal access to the service the public will have real choice and competition may actually prove to be to the publics’ benefit instead of continually lining Telstra’s pockets.
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