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Price is regulated, don't miss that part of the story. No other telco has the obligation of servicing customers and infrastructure in financially unviable scenarios/markets coupled with stringent regulation.
With wholesale agreements it would seem that there is an enforceable gap between what Telstra can retail compared to wholesale. Take Broadband as an exampble, they reduce their Broadband to $29.95 a month and this is deemed not competitive because it's retailing too close, or under that wholesale gap. The Media crucify them, as their cherry pickin' competitors with wholesale agreements pursue the matter. Reducing line rental is not the answer, creating a whole of telecommunications packaging approach is, as we approach technology convergence. There is still a lot of growth in Telstra yet to come if it isn't over regulated. If you don't want to buy the stock, buy a long call - you might just win.
As a shareholder, I eagerly wait for news of where Sol wants to take the company.
Telstra are destroying their core business by the fixed line rental charge. It is now cheaper to do away with the home phone and use a mobile. Another option is wireless broadband and VOIP.
Geez, looks like Sol has the shareholders brainwashed a treat.
I naffed off my landline because its too expensive, and they want to INCREASE the line rental, thats only going to accelerate the declining PSTN numbers.
So, your shareholder huh, hows the shareprice lately ?
Geez, looks like Sol has the shareholders brainwashed a treat.
I naffed off my landline because its too expensive, and they want to INCREASE the line rental, thats only going to accelerate the declining PSTN numbers.
So, your shareholder huh, hows the shareprice lately ?
So cunning that it don't exist.This clown and his yankee mates are clueless.They drove Graviton into the ground even with exclusive USA Defence contracts.Sell your shares now.It will only get worse.Sol is afraid to sack staff.
"revenues declined 1.9 percent"..
..still means that there was a profit.
bahahahah die telstra die sooner the better.holding australia to ransom over a bit of copper...get with it or die gready bastards..rippin us for too long now.
bahahahah die telstra die sooner the better.holding australia to ransom over a bit of copper...get with it or die gready bastards..rippin us for too long now.
bahahahah die telstra die sooner the better.holding australia to ransom over a bit of copper...get with it or die gready bastards..rippin us for too long now.
I think our Telstra friends have forgotten who actually PAID for the infrastructure? We did! It was a Government funded initiative...
Life would have been so much easier if the Government just sold off the retail divisions (mobiles etc) and left the infrastructure in Government hands (and charged Telstra (and Optus et al) for the privilege of utilising the lines.
Sol forgets that it isn't him that paid for most of this stuff...
BTW - I gave Telstra the flick for my fixed line - went to TransACT...they were cheaper (and I get broadband and FREE calls to other TransACT customers).
A challenging mix
Having been a Telstra employee in the past I can say with my hand on my heart that the company is made of people like you and I who do care about people and providing a fair service. There is no doubting that management are driven by achieving shareholder value, but then that's what they are meant to do, if you owned shares in any company you'd want management to have your best interest at heart.
Telstra has for a long timed been burdened by poor government intervention and understanding of what it takes to deliver services here in Australia. Just think about it for a second, the sixth largest country land wise and only a fraction of the people to go with it. We have one customer per 2km of cable / copper versus the US they have one customer for every 30m of there abouts. It just doesn't add up, and yet the government wants Telstra to deliver services to the bush, yet Optus and co get off scot free, under the Universal Service Obligation they pay litteraly nothing when compared with Telstra yet get to cheery pick the best of Australia - do you see Optus in the outback deliverying services to the same degree as Telstra?
As for those of you who are going with VoIP good move as this is the future - but guess who most of the VoIP carriers buy their bandwidth from? Also, when fully converged services are delivered i.e. voice, data, VoD, IPTV etc, you'll want a carrier with a conditioned network and customer premise equipment who can provide quality of service so that your voice call to your mate in the UK doesn't go all choppy as you down load the latest MP3 or stream the new blockbuster movie. Yeap sure, the other service providers will eventually get there, but then again it'll be Telstra who'll where the regulated burden of delivering services to the less than economical areas whilst the other carriers make their fill from the profitable cities.
I don't blame people jumping from Telstra when there prices are higher than most service providers, but remember who employees over 9000 customer service rep's in rural Australia? Remember who is Australian owned?
Sol and his team certainly have a plan, which I hope really propels Telstra back to where they should be, and I also hope that the government gives them an opportunity to make the investment in areas where they'll always make a loss whilst still continuing to make a profit in other areas.
If you only knew what it costs to deliver services to rural Australia and the who much subsidy is provided you'd be amazed. An even then rural Australia is still getting raw deal when compared to their city cousins. But that's economics, and have the government regulate the way they do just makes Telstra want to avoid the investment and focus on areas where they can make some serious dollars to satisfy the needs of their shareholders - talk about a conflict.
My final word is that the government should own the infrastructure, especially in a country like Australia when you'll never see another carrier make necessary investment to compete from coast to coast.
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Reduce the cost of fixed line rental would be a start to obtaining more customers