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Telstra mocks Labor's broadband plan

Discussion in 'General Discussion Forum' started by byso, Dec 7, 2007.

  1. byso

    byso Well-Known Member

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    Telstra mocks Labor's broadband plan

    Telstra mocks Labor's broadband planBy Jennifer Hewett
    December 07, 2007 12:00pm

    TELSTRA has bluntly rejected the new Government's proposal for a partnership to build a national broadband network, jeopardising Labor's ambitious agenda for a broadband and education revolution.

    Telstra chief executive Sol Trujillo told The Australian yesterday that the company would never agree to the Government's suggestion of a form of joint ownership, mocking it as some sort of "kumbaya, holding hands" theory.

    "We are only going to participate in the things that we own and control," he said.

    He also argued the new Government must direct the competition regulator to back off in terms of limiting the prices Telstra could charge. Instead, he insisted that the company would invest only on the basis that it could charge enough to ensure good returns for its shareholders.

    The commitment to spend $4.7billion of public money to fund a new high-speed broadband network was central to Labor's election strategy. But the strong comments from Telstra signal there will be no let-up in the confrontation that marked its relationship with the Howard government and the regulator, the Australian Competition and Consumer Commission, over the past two years.

    It is also likely to delay any rollout of the digital education revolution in computers and broadband approved by federal cabinet yesterday, with secondary schools able to apply for up to $1million in funding from March next year.

    While Labor has not defined a precise ownership structure for a new broadband network, it is insisting it wants a shared equity investment, rather than just handing over the funds to one company or a consortium.

    It is also concerned that the ACCC will effectively set the prices that can be charged for using the new network.

    Mr Trujillo, firmly backed yesterday by chairman Donald McGauchie, said Telstra was happy to invest $4 billion or more of its own money rather than the taxpayers' - but only on its terms and pricing.

    Communications Minister Stephen Conroy said last night Labor's position remained the same as the one it took to the election. "I expect Telstra to robustly defend its interests," he said, adding that Labor would soon announce an expert panel to decide the structure of the proposed broadband network.

    Senator Conroy said the process would be completed by June.

    But even the prospect of access to government funds will not alter Telstra's view that it must own and control the network, with Mr Trujillo saying any alternative ownership would only lead to confusion. "We don't want to muddy it up with what you can do and what you can't do and when," he said. "It makes managing your business too hard."

    His comments came as Telstra suffered a stinging defeat in the Federal Court, which found it had misled mobile phone consumers when it said in advertisements that coverage for its Next G network was available "everywhere you need it".

    "Telstra engaged, and continues to engage, in conduct that is misleading or deceptive," judge Michelle Gordon said in her ruling in the case, which was brought by the ACCC.

    Mr Trujillo warned yesterday that without a major investment in broadband, the damage to the Australian economy would be severe and long-lasting. "I think there will be huge economic impacts for Australia because Australia will fall behind the rest of the world," he said.
    According to Mr Trujillo, his own conversations with Kevin Rudd have made it clear that the new Prime Minister understands what is at stake.

    But Mr Trujillo said that the Government had a choice to make. "The question is do you focus on process or do you focus on outcomes. That is the part that is yet to be determined," he said. "I am an optimist that Kevin Rudd wants to focus on outcomes. He wants to change education, he wants to change healthcare delivery, he wants to change a lot of things. To argue over technicalities versus getting the big outcomes is really the choice."

    Labor is promising to use high-speed broadband to make the economy more efficient and to deliver all sorts of services, such as networked schools and its new computer program for students, along with improved healthcare programs.

    During the campaign, Labor avoided detailing how its proposal would work in practice, beyond expressing confidence it would be able to work with Telstra or other telcos when in government. But while an alternative G9 group led by Optus will also tender for the proposed new fibre network, it would need to make use of some Telstra facilities, which Telstra has made it plain it will continue to fight vigorously.

    Labor has in the past also privately conceded that Telstra is the logical and easiest option to build a new network.
     
  2. Matabele

    Matabele Well-Known Member

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    Telstra mocks Labor's broadband plan

    Who is the majority shareholder of Telstra?
     
  3. Canteen Worker

    Canteen Worker Well-Known Member 2016 Tipping Competitor

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    Telstra mocks Labor's broadband plan

    Byso - are you going to post every negative article regarding Labor over the next three years? (Good thing I didn't do the same of Howard and Abbott and Co.)

    Get over it. Howard was tired and out of ideas and got kicked for someone fresh with some vision. He maybe doesn't have all the answers but the majority has spoken. Stop your sulking.
     
  4. clontaago

    clontaago Well-Known Member

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    Telstra mocks Labor's broadband plan

    Hey does anyone remember the name of that guy who was Prime Minister and lost his own seat. It shouldnt be too hard to recall, there have only been 2 in the history of our proud nation!!!!

    I think his name was Johnny Coward or something along those lines.
     
  5. Matabele

    Matabele Well-Known Member

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    Telstra mocks Labor's broadband plan

    I suppose we should all be glad for the lasting legacy left us by the Naaaaaaational Party. The farcical OPTEL roll-out in rural areas that will catch country areas up to 1% of the speed currently enjoyed by Scandinavian internet users - in 3 years time of course.

    FFS. No wonder this country is going backwards.
     
  6. byso

    byso Well-Known Member

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    Telstra mocks Labor's broadband plan


    I'm sure you'll see many negative articles placed on the liberal party in the general forum.

    So stop your whining and get used to it girlfriend.
     
  7. Matabele

    Matabele Well-Known Member

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    Telstra mocks Labor's broadband plan

    Does the liberal party exist anymore?
     
  8. byso

    byso Well-Known Member

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    Telstra mocks Labor's broadband plan

    Sure does and is in a better shape than what labor was after Lathom got slaughtered.

    As far as pollicies go, did you prefer Lathams or Rudds?
     
  9. The Gronk

    The Gronk Well-Known Member

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    Telstra mocks Labor's broadband plan

    Being in opposition in 9 out of 9 parliaments is hardly better than being in government in 8 out of 9 like labor was after Latham
     
  10. Canteen Worker

    Canteen Worker Well-Known Member 2016 Tipping Competitor

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    Telstra mocks Labor's broadband plan

    The Mayor of Brisbane must have a very large staff of party hacks who have noone else to employ them.
     
  11. Matabele

    Matabele Well-Known Member

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    Telstra mocks Labor's broadband plan

    Isn't it fun watching Bytho twitch and squirm?
     
  12. Narcissus

    Narcissus Member

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    Telstra mocks Labor's broadband plan

    Telstra can go fcuk itself. I wasn't sure if Telstra was still part government, but from Mata's comments I'll assume it is.

    So essentially what they're saying is "we're happy to take the money, but we'll be damned if you'll have a say in how we use it and price it". Because, as we all know, they're a beacon of good value to the customer.

    How about this... Telstra, instead of complaining about how hard life is, just pay us, the taxpayers, all of the money that it cost to build the infrastructure that we gave you. Then, going forward, pay for it all yourself. Finally, DIE.

    All I hear is how it sucks to have to share with other networks and blah, blah, blah. Well here's some news for you Telstra... IT'S NOT YOUR FCUKING NETWORK TO BEGIN WITH. WE paid for it, not you. So either share it, or lose it. That's the simple solution and I just think that Telstra should be entirely privatised just to get it over and done with... whilever the government is a part owner, they're going to have this problem.
     
  13. Fro

    Fro Well-Known Member

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    Telstra mocks Labor's broadband plan

    Nah Narc they sold it all, not one of the better decisions taken in recent times, especially for those of us living west of the sandstone curtain
     
  14. Canteen Worker

    Canteen Worker Well-Known Member 2016 Tipping Competitor

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    Telstra mocks Labor's broadband plan

    The irony of all this is that country people have been stuffed by the Lib/national Coalition, who are supposedly representing them, (though the drought hasn't helped I supposed.)
     
  15. Dan

    Dan Administrator Staff Member Administrator 2016 Tipping Competitor

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    Telstra mocks Labor's broadband plan

    Basically Telstra are saying hey no way we want more money we dont want to help the people.

    That has nothing to do with the Government, it is just unfair and selfish, a typical Telstra view
     
  16. ManlyBacker

    ManlyBacker Winging it Staff Member

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    Telstra mocks Labor's broadband plan

    Good old Sol. In two and half years he still hasn't recovered the share price that he started with, while the S&P200 is up 50%.

    To answer Mata, to my knowledge the biggest shareholder with approximately 17% is the Future Fund. This is the cash siphoned off by Costello to pay for the Commonwealth's Super liabilities for public servants. The FF has about $53 billion of which $9 billion is in Telstra, a move that was panned by David Murray (ex CEO for 15 yrs of CBA and now Chair of the FF Board of Guardians) as irresponsible. The majority of their dollars is sitting in term deposits (some $39 billion).

    Sol does have some points. Telstra was privatised and he is CEO of a now public company, a public company that is being forced and hounded to allow other networks to use their assets. The only other similar situation I can think of is recent moves to force BHP to share it's transport links in WA with other mining companies (and they had an agreement with the WA govt to allow this to happen at market rates).

    BTW, no love from me for Telstra.
     
  17. byso

    byso Well-Known Member

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    Telstra mocks Labor's broadband plan

    I hate Telstra myself but Sol's comment sums up Rudd perfectly.
     
  18. Canteen Worker

    Canteen Worker Well-Known Member 2016 Tipping Competitor

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    Telstra mocks Labor's broadband plan

    Time will tell Byso.

    However, I won't knock people who have a drream - however hard it is to fulfil. There would be no progress at all if we sat and just accepted the status quo with no vision.

    The jury is out on Rudd and it will take more than two weeks to confirm what he is made of. However, more of Howard's bland division and conquer is not what Australia needed.
     
  19. Guest

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    Telstra mocks Labor's broadband plan

    The funny thing is that most people have already forgotten that he lost his seat and government. And anyway he wasn't the first prime minister to happen to and won't be the last. In fact there is always that possibility every time there is a labor prime minister.

    But what we will always remember for the rest of our lives is Gough Whitlam being the only Prime Minister to ever be sacked by the governor general. How humiliating was that. I can see that being a record that will never be beaten.

    And to think that the labor party has held Whitlam up to be some sort of god ever since is the biggest joke ever. Whitlam and his government were a government version of HIH.

    God save the queen because no-one will save the governor general. This has been repeated a millon times since the seventies but why does the governor general need saving? I suppose just like another famous labor party saying - you can't have your cake and eat it to. :lol: :lol: :lol: :lol:
     
  20. The Gronk

    The Gronk Well-Known Member

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    Telstra mocks Labor's broadband plan

    The funny thing is that most people have already forgotten that he lost his seat and government. And anyway he wasn't the first prime minister to happen to and won't be the last. In fact there is always that possibility every time there is a labor prime minister.

    But what we will always remember for the rest of our lives is Gough Whitlam being the only Prime Minister to ever be sacked by the governor general. How humiliating was that. I can see that being a record that will never be beaten.

    And to think that the labor party has held Whitlam up to be some sort of god ever since is the biggest joke ever. Whitlam and his government were a government version of HIH.

    God save the queen because no-one will save the governor general. This has been repeated a millon times since the seventies but why does the governor general need saving? I suppose just like another famous labor party saying - you can't have your cake and eat it to. :lol: :lol: :lol: :lol:
    [/quote]


    That vein's starting to stick out on your forehead again isn't it ;)
     

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