The Big Bet Telstra Might Not Make

From
http://mobile-voip.tmcnet.com/topics...t-not-make.htm

Always tough-talking Telstra Corp. CEO Sol Trujillo has taken the "Google"
challenge to heart, betting that only a full-scale and expensive
transformation of his firm will allow Telstra to quickly innovate, Ray Le
Maistre,Light Reading editor, reports.


Global telcos can prosper alongside Web service providers if they are
willing to "take some risks," says Trujillo. "You've got to be willing to
make bets."

"Look at Google -- it can move in weeks to introduce new services. If you
take months or even years to do the same thing then you're in trouble," and
that's why transformation is a must, he says.

"If you hesitate, if you blink, then it won't be a bright future," he warns.

In Telstra's case, that has meant construction of a national mobile
broadband network costing AU $1.1 billion ($1.06 billion) in a new HSPA
mobile network in 10 months.

Early this year, 3.5 million of the carrier's 9.3 million mobile customers
were using 3G services made possible by the network.

Trujillo has high hopes for Web-integrated real-time services delivered over
the landline network as well. Consumers will look for their service
providers "to make it work together, with a one-touch, one-click
environment."

But that investment hasn't been made at "Google speed," as Telstra
vehemently objects to mandatory wholesale obligations the Australian
government had been insisting on. But Australia's new administration seems
more open to allowing Telstra to construct a network that does not come with
such provisions, clearing the objections Telstra has to proceeding.

Rival Optus also plans to bid to build the national network, which the
Australian government says will be bid out on a competitive basis to a
single provider, investing as much as AU $4.7 billion in the project.

Telstra insists it cannot afford to build the national network, even with
the government subsidy, without a rate of return above 18 percent, perhaps
as high as 27 percent. Rival bidding groups such as Optus disagree, saying
they are willing to build the network and accept a lower return.

At this point, nobody can be sure what the ultimate return will be, and as
tough as the always-feisty Trujillo talks, it isn't clear whether Telstra
can afford not to win the bid, no matter what the public posturing. If there
is AU $4.7 billion at stake, and a national monopoly as well, Telstra might
ultimately determine that it has to win. All the public talk is useful as a
bargaining chip.

There is one scenario that could change Telstra's mind. If, over its
objections, mandatory wholesale requirements are attached to the government
support, then Telstra could simply lease capacity on the network, without
needing to own the facilities. Telstra vehemently opposes that sort of
regulatory regime.

But that is the one scenario that might lead Telstra to stick to its guns,
lose the franchise, and then simply lease back capacity. You won't hear
Trujillo saying in public that this is anything Telstra can stomach. But
Trujillo is not just a tough talker. If he concludes there is no way to
build the network without mandatory wholesale requirements, he might just
walk.

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› See More: The Big Bet Telstra Might Not Make

Alan Poxington <[email protected]> wrote

> From
> http://mobile-voip.tmcnet.com/topics...t-not-make.htm

> Always tough-talking Telstra Corp. CEO Sol Trujillo

Wota ****ing wanker...

> has taken the "Google" challenge to heart, betting that only a full-scale and expensive transformation of his firm
> will allow Telstra to quickly
> innovate, Ray Le Maistre,Light Reading editor, reports.

Wota ****ing wanker...

> Global telcos can prosper alongside Web service providers if they are willing to "take some risks," says Trujillo.
> "You've got to be willing to make bets."

Wota ****ing wanker...

> "Look at Google -- it can move in weeks to introduce new services. If you take months or even years to do the same
> thing then you're in trouble," and that's why transformation is a must, he says.

Wota ****ing wanker...

> "If you hesitate, if you blink, then it won't be a bright future," he warns.

Wota ****ing wanker...

> In Telstra's case, that has meant construction of a national mobile broadband network costing AU $1.1 billion ($1.06
> billion) in a new HSPA mobile network in 10 months.

And they still havent made any money on that terminal stupidity.

> Early this year, 3.5 million of the carrier's 9.3 million mobile
> customers were using 3G services made possible by the network.

Bare faced lie.

> Trujillo has high hopes for Web-integrated real-time services delivered over the landline network as well. Consumers
> will look for their service providers "to make it work together, with a one-touch, one-click environment."

Wota ****ing wanker...

> But that investment hasn't been made at "Google speed," as Telstra vehemently objects to mandatory wholesale
> obligations the Australian government had been insisting on.

Like it or lump it, ****wit.

> But Australia's new administration seems more open to allowing Telstra to construct a network that does not come with
> such provisions, clearing the objections Telstra has to proceeding.

Bare faced lie.

> Rival Optus also plans to bid to build the national network, which the
> Australian government says will be bid out on a competitive basis to a single provider, investing as much as AU $4.7
> billion in the project.

> Telstra insists it cannot afford to build the national network, even with the government subsidy, without a rate of
> return above 18 percent, perhaps as high as 27 percent.

Then **** off an let someone else do that.

> Rival bidding groups such as Optus disagree, saying they are willing to build the network and accept a lower return.

Bye bye Telstra.

> At this point, nobody can be sure what the ultimate return will be, and as tough as the always-feisty Trujillo talks,
> it isn't clear whether Telstra can afford not to win the bid, no matter what the public posturing. If there is AU $4.7
> billion at stake, and a national monopoly as well,

Only in your pathetic little pig ignorant fantasyland.

> Telstra might ultimately determine that it has to win.

And they dont get to decide that, ever.

> All the public talk is useful as a bargaining chip.

Only in your pathetic little pig ignorant fantasyland.

> There is one scenario that could change Telstra's mind.

It aint up to Telstra, ****wit.

> If, over its objections, mandatory wholesale requirements are attached to the government support, then Telstra could
> simply lease capacity on the network, without needing to own the facilities. Telstra vehemently opposes that sort of
> regulatory regime.

Stiff **** for Telstra.

> But that is the one scenario that might lead Telstra to stick to its guns, lose the franchise, and then simply lease
> back capacity.

Only in your pathetic little pig ignorant fantasyland.

> You won't hear Trujillo saying in public that this is anything Telstra can stomach. But Trujillo is not just a tough
> talker.

He's just a spivy little wog wanker.

> If he concludes there is no way to build the network without mandatory wholesale requirements, he might just walk.

He's welcome to swim back to where he came from. Doubt the
sharks would bother to eat him, too greasy even for a shark.

Comparing Telstra with Google is like comparing the noisy old rust-bucket
Kombi with a Ferrari

"Alan Parkington" <[email protected]> wrote in message
news:[email protected]...
> From
> http://mobile-voip.tmcnet.com/topics...t-not-make.htm
>
> Always tough-talking Telstra Corp. CEO Sol Trujillo has taken the "Google"
> challenge to heart, betting that only a full-scale and expensive
> transformation of his firm will allow Telstra to quickly innovate, Ray Le
> Maistre,Light Reading editor, reports.
>
>
> Global telcos can prosper alongside Web service providers if they are
> willing to "take some risks," says Trujillo. "You've got to be willing to
> make bets."
>
> "Look at Google -- it can move in weeks to introduce new services. If you
> take months or even years to do the same thing then you're in trouble,"
> and that's why transformation is a must, he says.
>
> "If you hesitate, if you blink, then it won't be a bright future," he
> warns.
>
> In Telstra's case, that has meant construction of a national mobile
> broadband network costing AU $1.1 billion ($1.06 billion) in a new HSPA
> mobile network in 10 months.
>
> Early this year, 3.5 million of the carrier's 9.3 million mobile customers
> were using 3G services made possible by the network.
>
> Trujillo has high hopes for Web-integrated real-time services delivered
> over the landline network as well. Consumers will look for their service
> providers "to make it work together, with a one-touch, one-click
> environment."
>
> But that investment hasn't been made at "Google speed," as Telstra
> vehemently objects to mandatory wholesale obligations the Australian
> government had been insisting on. But Australia's new administration seems
> more open to allowing Telstra to construct a network that does not come
> with such provisions, clearing the objections Telstra has to proceeding.
>
> Rival Optus also plans to bid to build the national network, which the
> Australian government says will be bid out on a competitive basis to a
> single provider, investing as much as AU $4.7 billion in the project.
>
> Telstra insists it cannot afford to build the national network, even with
> the government subsidy, without a rate of return above 18 percent, perhaps
> as high as 27 percent. Rival bidding groups such as Optus disagree, saying
> they are willing to build the network and accept a lower return.
>
> At this point, nobody can be sure what the ultimate return will be, and as
> tough as the always-feisty Trujillo talks, it isn't clear whether Telstra
> can afford not to win the bid, no matter what the public posturing. If
> there is AU $4.7 billion at stake, and a national monopoly as well,
> Telstra might ultimately determine that it has to win. All the public talk
> is useful as a bargaining chip.
>
> There is one scenario that could change Telstra's mind. If, over its
> objections, mandatory wholesale requirements are attached to the
> government support, then Telstra could simply lease capacity on the
> network, without needing to own the facilities. Telstra vehemently opposes
> that sort of regulatory regime.
>
> But that is the one scenario that might lead Telstra to stick to its guns,
> lose the franchise, and then simply lease back capacity. You won't hear
> Trujillo saying in public that this is anything Telstra can stomach. But
> Trujillo is not just a tough talker. If he concludes there is no way to
> build the network without mandatory wholesale requirements, he might just
> walk.


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