Opinion: Separating Telstra IS the answer

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Opinion: Separating Telstra IS the answer

Apologies in advance to the analyst community, but recent warnings that the sky will fall if Telstra is split into infrastructure and service divisions are errant nonsense.

The only thing that will fall is the Telstra share price, and therefore the outrageous bonuses of its upper echelon managers. Oh boo-hoo. We should all put up with effectively zero competition so that a few shareholders can keep their cash? Not.

They’ve already bitten the bullet in the UK and NZ and we need to do the same here. It was obvious to everyone except the politicians that this should have been done in the first place. Heck, it was obvious to the politicians too, but they just wanted the maximum sale price so they could have nice electioneering surpluses to bribe us with our own money.

But wait, what about France? They’re world leaders in fibre-to-the-nostril and their monopoly telco hasn’t been operationally separated. How come? Well in case nobody noticed the French government still owns close to 30 percent of France Telecom.

That kinda restricts your monopolistic tendencies when your main shareholder is also the lawmaker of the land. So lets stop having endless committees of enquiry and do something for a change.

Everybody knows there’s no real competition in the local telco space. Just take a look at your phone bill. Should it really be one of your biggest monthly expenditures?

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