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September 15, 2005
The Telstra legislation passed through through the Senate last night. Michelle Grattin points out that the T3 episode shows how the Government will actually treat the Senate when it wants to get important bills passed quickly: committee hearings will be minimal, debate will be gagged, and due parliamentary process will be treated with contempt. We can expect more of the same kind of guillotining with the industrial relations and work -to-welfare legislation.
This arrogance and contempt happened despite the basic flaws in the legislation about regulatory governance and competitive markets in relation to Telstra's monopoly of the basic telephone network. Because it still owns most basic phone network its competitiors have to use and to pay it for the privilege. Telstra is being allowed to write the rules for the use of this network. It sure won't establish a level playing field between it and its competitors.
What sort of governance is that, given the sale is more than a year away, and the network has been run down?
This governance is not one that would faciitate what Ross Gittins says is most needed: ....competition that would improve the quality of service, encourage innovation, hasten the introduction of the latest technology and cause the cost savings from that technology to be passed on to customers.
Telstra will now slash costs to drive profitability whilst fighting to protect its monopoly privileges. Gittens observes that this suggests that:
...as soon as Telstra has its freedom from government ownership, it will be doing all it can to obstruct the regulators and avoid its legal obligations to the bush and any other unprofitable users.
That does not bode well for the necessary upgrade of the network to enable high speed broadband across the nation.
So how is that going to be achieved?
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For our busy bush town, [in liberal sharman stone's country seat]our IBIS inspired potential wireless broadband suppliers have just pulled out . telstra has now told us to wait utill next year "things may change " !?
At least kay hull had the guts to cross the floor .