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What's next, Qantas to lose its jets?


It was kind of ironic this week that on the same day Telstra was showing off communications of the future, with my blogger stable-mate Hugh Bradlow being beamed from Melbourne to Adelaide, our major competitor was out playing its same tired old political tricks. It was a big day for Telstra. Our Sensis colleagues also unveiled their new Trading Post auction site (www.tradingpost.com.au) aimed at taking on the global giant Ebay.

And while Telstra was focussed on investing, building new technology and being a global player, our major rival SingTel Optus was concentrating on trying to stop investment in Australia. The company was out flogging a report it commissioned that concluded Telstra should be broken up. Surprise, surprise!

SingTel has appointed the former NSW Treasurer Michael Egan to front its cartel which has changed its name from the G9 to that of a small yapping dog.

Taking up his new challenge, Mr Egan made no secret of what his employer's real agenda is.

In his first interview with the pro-Optus journalist Michael Sainsbury (www.theaustralian.news.com.au), he made it clear that Singapore won't be happy until the only the company capable of building a high speed fibre network in Australia is broken up.

Facts were once again the first casualty in SingTel's latest war on Telstra, with its constant claim that telcos the world over are being "structurally separated". In fact the reverse is true, but that didn't stop more gullible media types lapping up the idea.

On top of SingTel's OPEL debacle, this week we learned the man appointed to manage the new cartel appears to have parachuted out of another company (www.theaustralian.news.com.au) at a time of financial turmoil.

You have to wonder how someone with a distinguished public career like Michael Egan would allow himself to get mixed up a crowd of people who seem so desperate to see Australia go backwards.

But, he could be on a roll here. Perhaps Singapore's investment arm will get him to lobby for the break up of Qantas once he's finished trying to wreck Telstra?

Singapore Airlines would love that just as much as SingTel Optus would like to see Telstra ripped apart.

Comments

Colin Jones
2 comments

30 May 2008
4:46pm

Comment Permalink

Egan, that famous treasurer from NSW Inc.? I can't actually find anything nice to say about him. I think he and OPTUS deserve each other. All they need is Costa to make it a real deal. Cheers


Geoff Stark
1 comment

30 May 2008
8:49pm

Comment Permalink

Ok maybe I am being simplistic in my view, ( and to be honest it wouldnt be a first). If Terria are so serious about winning the tender for the FTTN rollout, why are they talking about structural separation of Telstra? Wouldn't winning the tender effectively do that anyway? Then again after listening to Egan interview on the ABC, you have to question what the motives are of the G8 Cartel. Are they serious about building a network or just getting cut price access with no risk?


Tony Power
117 comments

4 June 2008
6:41pm

Comment Permalink

Terria want Telstra to be broken up so that the FTTN will never be built. If there is no Telstra to build it It will never be built. SingTel/Optus are making squllions leeching off the decaying copper network thanks to the corruption of the ACCC. If you have your phone with Telstra and your internet with Optus you get charged by Optus, for a middle of the range plan, in excess of $50 but due to regulation Optus only pays Telstra $2.50. That's in the order of 2000%, not a bad profit margin is it. When the FTTN is built it will not be regulated as the copper network is, and so Optus and the other 7 little pigs in the G8 will have to have true commercial contracts with Telstra to have access to the fibre network. Now do you understand why SingTel doesn't want the FTTN to be built? Of course they will still have regulated access to the copper network but as soon as the FTTN is available in my area I'll be all over it like white on rice and so will virtually every one I know including every business and government agency.


Jon Dixon
9 comments

18 June 2008
8:47pm

Comment Permalink

@Tony Power: Optus paying Telstra for the rental of the line isn't the only cost. For backhaul (per mb/s per month), Telstra charges anywhere between $55 and $180, whereas third parties only charge $1.50 to $30. Do your homework.


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