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There is only one way to future-proof telecommunications in Australia and that is by separating the infrastruture from the rest of the Telstra business.
That would provide two major benefits. It would provide an infratructure that is open to ALL telcos on a level playing field where everyone pays the same for using the infrastructure, instead of one creaming $$ off the others for use of *its* infrastructure - an infrastructure that was paid for by the people of Australia. It would also ensure that the heavily used areas of the infrastructure would subsidise the less heavily used areas - the only real way to ensure equity of service, but one that goes against the current government's user pays strategy.
Let's learn a lesson from the mobile phone networks debacle. An independent company should have been appointed to provide a network of phone towers right across the country and individual telcos would then have been able to rent space on the towers according to their needs. Those companies that provide the best coverage for their client base, will get the business. Competition is not about everyone trying to do the same thing, it's about finding a niche market and providing outstanding service to its clients.
Before we rush into this sale, let's again consider what is best for the Australian public, wherever they live. Providing equality in communications infrastructure and service is much more important than making $$ for govt coffers or creaming off $$ for shareholders.
Just look at the example of public transport - what incentive is there for companies to service the unprofitable routes? Equally, what incentive is there for Telstra to service its unprofitable areas? The simple answer is none - and that's why, like a privatised public transport infrastructure, a privatised telecommunications infrastructure will also fall apart.