Friday, Dec 14, 2007 at 12:40
Thats the point robak, Telstra are required by law to allow other service providers access to the lines, exchanges and pipe/trench systems that existed when Telstra was first privatised and Telstra is allowed to charge a commercial rate of return to cover the maintenance and support of the said
infrastructure.
The argument is two fold, one that these other service providers want to access the system and pay nothing for the privilege where as old Sole wants a reasonable commercial rate of return rather than a loss as the the ACCC is trying to inflict.
Example Sole wanted to charge $9.00 per month for a coper phone line and the ACCC has said the regulated price is going to be $2.50.
Remember that the other carriers will on sell this line at about $30.00 per month.
Telstra have to maintain and support the line for this "Directed Price" of $2.50 and the argument goes on.
The second and probably bigger point is that these other carriers think that this regulation extends to new installations and
infrastructure installed by Telstra today such as fibre optic cabling for broadband or Next G mobile system etc.
Sole says no way are my competitors getting a free ride on my shareholders money by using their new
infrastructure at the ridiculous regulated prices directed by the ACCC on the old system.
If you want to compete then build your own lines and
infrastructure of pay me a reasonable rate to use
mine, but no free ride.
As I said above Telstra get blamed all the time but there is nothing stopping Optus from going to say Pesty's exchange and installing it's own ADSL equipment and tying Pesty's phone line in the exchange to its equipment and charging him for the privilege other than they would have to send a tech out perhaps just for Pesty as everyone else may want to stay with Telstra or AAPT etc which makes the whole business for them unviable so they don't do it.
Its left up to Telstra to service the country areas of Aus which they do with government subsidies to assist with covering the extra cost of the remote service.
Optus etc only pick the eyes out of metro areas as thats the easy money and stuff the country people.
Its a very complex world now and this is a very simple explanation.
I don't disagree with Sol's stance as all he is trying to do is protect the interests of his shareholders which is what the law requires him to do.
One other small point, Its a fact that the other carriers like to blame Telstra for their problems to politicize the issue and to make out its all the fault of Telstra. (I don't doubt that sometimes the problem can be Telstra)
These other carriers don't give a $hit about the country people as there is no money to be made from you so they simply use Telstra as the whipping boy for their own lack of interest in servicing the Australian public as awhole and blame Telstra for the problem everytime.
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