TLS 0.52% $3.90 telstra corporation limited.

The thing about Telstra.

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    So, there's this monopoly called Telecom. Government owned, (in reality, taxpayer owned), overpopulated with bludgers, and providing a very, very, expensive and lousy service.

    One day, Government says, 'Hey, let's sell Telstra' - this provides the Government with a big chunk of money, and fits in well with growing global concepts of privatisation, 'hands-off' management of gorilla industries.

    So the thing gets sold, with a sort of grudging 'it's probably ok', both sides of parliament giving loose assent to the concept - because at one time or another both sides have considered the windfall - looks good at budget time, eh?

    Trouble is, the turkeys who run the country (what a great comment from Woody Allen:"The world is run by people who turn up"), decide not to entirely divest themselves of total control. Result is a half-pregnant corporation, who cannot run the organisation according to the usual corporate rules - borrowings, alliances, debt financing etc etc etc.

    Even worse, the newly competitive atmosphere supposed to be released by the sale of the former state-owned entity can't get off the ground because - THE FORMER STATE-OWNED MONOPOLY STILL OWNS THE LAST MILE OF COPPER WIRE GOING TO EVERY CONSUMER.

    This means that the new Telstra, can hold to ransom every competitor who might have been able to provide a better, more efficient, user-friendly communications system.

    On the government side, it would now like to release all of its control over the telecommunications gorilla, to first, get more money into its own kitty, and second to appease the electorate who were persuaded to put their hard earned into a dud. Problem is it can't, because the Socialist left who'd like to get back into power have suddenly discovered a love for the bush. Their understanding of the bush is any place where Labor is a dirty word.

    So where does that leave everyone?


    A dysfunctional company.

    A disillusioned electorate.

    A monopolistic and lethargic giant dominating Oz telecommunications.


    The real solution, is to break up Telstra. Smash its monopoly of the infrastructure. Until this is done, there's just no place for any other player. It's not dissimilar to the airline industry. If Telstra, with all its monopolistic power can't get it's share price over $5, what hope is there for any player in this game.

    Until some cataclysmic event takes place, the telecommunications industry in this country is stuffed. Telstra will never get off its arse under its own steam, and it will continue to stymie anyone else who tries.

    Major reform and progress, or just more of the same. There's no other option.

    And while that little tart in the Senate holds sway.....
 
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