(no subject)
THE Government’s response to a lagging Telstra share price-dithering around, then deciding to sell $8 billion of it while parking the rest in the Future Fund-is alarming.
The sale of such a large part-government-owned asset should not be premised on a businessman, Phil Burgess, keeping quiet. The bulk of the shares should not be placed into an untested and unaccountable Future Fund, creating needless uncertainty.
The insanity of the Government’s actions speaks for itself. There is a good reason why Australia’s telecommunications infrastructure is lagging behind the rest of the world, and it should be quite obvious.
The Telstra sale needs to be done properly-it is not a trivial matter. The company must be split into wholesale and retail divisions, as [this] editorial last Wednesday recommended.
The former would own the infrastructure and networks. It should be kept in government hands and managed, independently, by the competition regulator.
The latter division would incorporate Telstra’s commercial activities and should be privatised, then treated like any other large corporation. Existing shares would be in this company.
This method of separation has worked well around the world, most notably in Britain, the US and Chile where it has ensured a level playing field in the market and the removal of traditional sources of monopoly power.
Indeed, the sale of Telstra’s retail operations would allow universal service in areas where it is unprofitable to be subsidised-this is a government responsibility, after all.
These actions would ensure our telecommunications market is competitive, efficient and world-class. It should never be too late for the Government to act in the national interest, rather than kowtow to a vocal group of shareholders and populist pressures.
http://blogs.theaustralian.news.com.au/letters/index.php/theaustralian/comments/split_telstra_into_wholesale_retail_for_world_class_results/
The sale of such a large part-government-owned asset should not be premised on a businessman, Phil Burgess, keeping quiet. The bulk of the shares should not be placed into an untested and unaccountable Future Fund, creating needless uncertainty.
The insanity of the Government’s actions speaks for itself. There is a good reason why Australia’s telecommunications infrastructure is lagging behind the rest of the world, and it should be quite obvious.
The Telstra sale needs to be done properly-it is not a trivial matter. The company must be split into wholesale and retail divisions, as [this] editorial last Wednesday recommended.
The former would own the infrastructure and networks. It should be kept in government hands and managed, independently, by the competition regulator.
The latter division would incorporate Telstra’s commercial activities and should be privatised, then treated like any other large corporation. Existing shares would be in this company.
This method of separation has worked well around the world, most notably in Britain, the US and Chile where it has ensured a level playing field in the market and the removal of traditional sources of monopoly power.
Indeed, the sale of Telstra’s retail operations would allow universal service in areas where it is unprofitable to be subsidised-this is a government responsibility, after all.
These actions would ensure our telecommunications market is competitive, efficient and world-class. It should never be too late for the Government to act in the national interest, rather than kowtow to a vocal group of shareholders and populist pressures.
http://blogs.theaustralian.news.com.au/letters/index.php/theaustralian/comments/split_telstra_into_wholesale_retail_for_world_class_results/