This past 4 weeks it has been increasingly obvious that the US led team at Telstra is not happy with regulations forced upon them by the Federal Liberal Government.
Telstra’s argument is that regulation imposed on the giant is unfair and it stifles innovation and therefore is not good for consumers. (cough cough, splutter, splutter)
Innovation? Hmmm, heard of VOIP? Wireless Internet? Seems to me you are the last company on earth that wants to delve into innovative products and services. You are being dragged, kicking and screaming into the VOIP age, how about releasing this now for all of your broadband subscribers? No, Telstra will only offer this ‘innovative’ technology when you have to, and not a moment before!
My advice to Sol Trujillo (Telstra) is to shut up and continue on ripping off Australian’s with your current monopoly. I just don’t see any bleeding hearts from consumers towards Telstra (except maybe shareholders). I mean, we pay ridiculous fees for local and national calls, everyone basically has to pay Telstra for access to their network (a network we actually once owned).
Telstra’s revenues from fixed line (local and national calls) is over 7.5 Billion dollars, of which nearly 40% is made up of ridiculous line rental charges.
Telstra’s time is ending as a monopoly and they will pay dearly for this monopoly and the way they have treated their customers over many years,……….. bring on VOIP (a total solution) in a big way I say.
Then and only then will we see Telstra’s revenue fly south at an alarming rate….and yes, I would not recommend Telstra’s shares to myself let alone my mother!
As for you Mr Howard. Has anyone noticed the repeater on with his claims that “Government ownership is the only thing holding Telstra back – not regulations”?
Seems to me his media advisors seem to think this is a good phrase because he has been telling us this over and over again for the past few weeks.
Innovation is the one thing that will make Telstra pay! Wireless Internet Telephony, WiMax and other new and innovative technology will skip the landlines and effect Telstra’s revenues significantly.
Here are some of their products that will be effected.
– Line Rental Fees
– Local Call Charges
– National Call Charges
– International Call Charges
Broadband Plans (as people move to Wireless)
What Telstra have going for them
– Short Term Monopoly
– Cash – To buy companies that become strong competitors (hopefully ACCC will block this)
However Telstra and Sensis can no longer waste billions of dollars on dodgy acquisitions like they have in the past. They will need to be prudent. Movies, Music downloads should bring some extra revenues but competition will be strong in all of these fields.