Telstra split no answer, expert says

From
http://business.theage.com.au/telstr...0707-34is.html

AN ENFORCED separation of Telstra would not be a "silver bullet" for
Australia's telecommunications industry and could instead stifle the
expansion of broadband, an industry expert has warned.

The Federal Government's $4.7 billion tender for the construction of a fibre
optic-based national broadband network has been hailed by No. 2 telco
Optus - and seemingly all of its smaller rivals - as an overdue opportunity
to split Telstra's retail division from its wholesale and network divisions,
to reduce its market power.

Separation, either by the sale of Telstra's network division, or forcing it
to operate as an independent company, was the dominant theme of submissions
made to government last month about its broadband tender plan.

Ovum research director David Kennedy said he was concerned public discussion
about the issue had focused on the competitive benefits of separation
overseas - specifically in Britain and New Zealand - but featured "very
little discussion of the costs".

"What we're seeing at the moment is not a real debate - it's really just
statements of preferred positions - and the issues themselves aren't being
canvassed in any kind of meaningful way," he said.

Mr Kennedy acknowledged Australia, like Britain and New Zealand, had an
extensive copper-wire telephone network capable of a fibre-to-the-node
(FTTN) upgrade, but insisted the debate "isn't really complete unless you
talk about the differences as well". "The UK's a market of 65 million people
in quite a small area - it's not that difficult to generate economies of
scale and scope in that sort of market," he said.

"If you're breaking up an incumbent in a more dispersed, smaller market, the
economic implications are going to be different."

Telstra argues integration allows it to be more efficient, by avoiding
duplication of staff and equipment across its retail and wholesale
divisions.

Mr Kennedy believes the Government is "between a rock and a hard place",
because he is increasingly pessimistic there will be a serious broadband bid
to rival Telstra's.

"The one thing the Government can't force Telstra to do is invest money," he
said. "They can impose wholesale regulation and they can demand operational
separation, but it's always open for Telstra to walk away, and it (Telstra)
does have alternatives (in wireless and cable)."

The most likely alternative bidder is the Optus-led Terria consortium, whose
members are meeting today to work on their bid, although it is yet to secure
a major investor. Terria bid manager Michael Simmons said yesterday he was
"not in a position to announce anything yet".

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Alan Poxington <[email protected]> wrote

> From
> http://business.theage.com.au/telstr...0707-34is.html

> AN ENFORCED separation of Telstra would not be a "silver bullet" for Australia's telecommunications industry and could
> instead stifle the expansion of broadband, an industry expert has warned.

He didnt 'warn', he CLAIMED, ****wit.

> The Federal Government's $4.7 billion tender for the construction of a fibre optic-based national broadband network
> has been hailed by No. 2 telco Optus - and seemingly all of its smaller rivals - as an overdue opportunity to split
> Telstra's retail division from its wholesale and network divisions, to reduce its market power.

They're right.

> Separation, either by the sale of Telstra's network division, or forcing it to operate as an independent company, was
> the dominant theme of submissions made to government last month about its broadband tender plan.

Wota surprise.

> Ovum

Wota stupid name...

> research director David Kennedy

wanker David Kennedy, actually.

> said he was concerned public discussion about the issue had focused on the competitive benefits of separation
> overseas - specifically in Britain and New Zealand - but featured "very little discussion of the costs".

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

> "What we're seeing at the moment is not a real debate - it's really just statements of preferred positions -

Yours in spades.

> and the issues themselves aren't being canvassed in any kind of meaningful way," he said.

You in spades.

> Mr Kennedy acknowledged Australia, like Britain and New Zealand, had an extensive copper-wire telephone network
> capable of a
> fibre-to-the-node (FTTN) upgrade, but insisted the debate "isn't
> really complete unless you talk about the differences as well".

Wota ****ing wanker.

> "The UK's a market of 65 million people in quite a small area - it's not that difficult to generate economies of scale
> and scope in that sort of market," he said.

> "If you're breaking up an incumbent in a more dispersed, smaller
> market, the economic implications are going to be different."

Nope.

> Telstra argues integration allows it to be more efficient, by avoiding
> duplication of staff and equipment across its retail and wholesale divisions.

And only a fool would buy that claim. You qualify.

> Mr Kennedy believes the Government is "between a rock and a hard place", because he is increasingly pessimistic there
> will be a serious broadband bid to rival Telstra's.

Great, with any luck we wont be pissing all that money against the wall on something we dont need.

> "The one thing the Government can't force Telstra to do is invest money," he said.

Great, with any luck we wont be pissing all that money against the wall on something we dont need.

> "They can impose wholesale regulation and they can demand operational separation, but it's always open for Telstra to
> walk away, and it (Telstra) does have alternatives (in wireless and cable)."

Great, with any luck we wont be pissing all that money against the wall on something we dont need.

> The most likely alternative bidder is the Optus-led Terria consortium,

You quite sure you aint one of those rocket scientist ****wit children ?

> whose members are meeting today to work on their bid, although it is yet to secure a major investor.

Lie.

> Terria bid manager Michael Simmons said yesterday he was "not in a position to announce anything yet".

So ****ing what ?