Telstra CEO refuses to confirm fibre bid

Telstra CEO Sol Trujillo told reporters today he could not confirm whether the telco will bid to build Australia's fibre-to-the-node (FTTN) network, as the relationship between the telco and government continues to deteriorate.

Trujillo made his comments at the release of the company's annual results, which showed the telco's net profit rising by some three percent year-on-year.

Questioned on whether the company would put forward a bid, Trujillo said: "I can't answer that yes or no, I haven't seen it [the draft guidelines] yet -- I've been a little bit busy running the company."

The expert taskforce in charge of picking who will build Australia's urban high speed broadband network, likely to use fibre to the node technology, released a set of draft guidelines for the scheme earlier this week.

While Telstra has previously expressed its interest in participating in the tender process, previous discussions with the government over the network have resulted in a fractious relationship between the two and suggestions from Telstra it would pull out of bidding for the project altogether.

Trujillo went on to criticise the government and regulators over what it sees as favouritism directed towards its competitors.

"The results have been achieved in the business despite competitors enjoying very favourable access prices. ... our competitors get extreme help from the regulator," the Telstra head said, adding: "Given this unlevel playing field, we will continue to compete hard and win and we will advocate for our shareholders."

According to Trujillo, the relationship between government and telcos has worsened over the last 10 years.

"Here in Australia, if you look at the last 10 years environment has been most negative environment anywhere in the world and the most backward looking, not only in last year or two but in a period of time ... We are not standing up and supporting [the government] -- they are bad for our shareholders."

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Talkback 6 comments

    Telstra not in it for the customers.. suprise suprise. Anonymous -- 09/08/07

    Quote : "Given this unlevel playing field, we will continue to compete hard and win and we will advocate for our shareholders."

    and

    (edited out the first part)"We are not standing up and supporting [the government] -- they are bad for our shareholders."

    It appears the only thing Telstra is concerned about is its shareholders, nevermind advancing your average australians access to broadband, or making access cheaper due to increased profits and decreased costs. Reminds me of that ad they were playing recently about the new IR rules where the company heads are meeting to discuss how to make more money for the company, and they laugh and joke about how they can now pay their employees even less and one of the company heads even complained that it was unfair to the employees, it didn't matter because they are looking after the shareholders first and foremost, then the next subject, was committee members pay increases. I think you could put Telstras name on that ad.

    Your surprised? Anonymous -- 09/08/07 (in reply to #320084139)

    As a public campany their first and foremost concern is returning value to their shareholders. Stakeholders and others come a distant 2nd. I agree that as stakeholders (and even the shareholders for that matter) most Australians are very concerned about our poor broadband and the high costs but the government can't make the company private to raise funds then expect it to act like a govt owned enterprise any longer. They have a resposibilty to their shareholders and to do what is right by them... and no i don't own any shares and don't really like telstra either but understand why they are doing what they are.

    no not really.... Anonymous -- 10/08/07 (in reply to #320084154)

    true enough, I guess I'm not really surprised that this corporate conglomerate isn't concerned with its customers at all, I guess until telstra start getting hit in the hip pocket due to angry Australians finally realizing how much like a bank telstra is, and start showing their dissatisfaction by not buying into telstra at all, that they will keep going they way they are doing things. though its hard when in quite a few places especially broadband wise, some people are forced to either have dial up, or telstra cable. (the places where they decided to add fibreoptic cable instead of copper cables)

    Id even go so far to say that even if they have a major loss in income, they wouldn't attribute it to customer dissatisfaction, they would blame the government or some other contributing factor, im sure they are good at thinking up such things, just call up their support line when their adsl or cable service goes down and watch them blame everyone else but themselves.

    Suprised? Simon -- 10/08/07 (in reply to #320084154)

    I don't agree with you there. A good organisation understands the balance between shareholder value and customer satisfaction. To ensure long term shareholder value, a good company ensures it delivers the best customer service consistently and does not skimp to achieve this.
    Companies that focus only on shareholder value at the expense of their staff and customers will fail. This is very basic stuff and only short sighted or stupid executives believe differently.

    quick and simple Anonymous -- 12/08/07

    True Jillo, go home..........you are in charge of an australian company, do it our way or 'go home'

    quick and simple Anonymous -- 12/08/07 (in reply to #320084267)

    oh, and leave the pay packet on the buffet as you leave........ thank you.....

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