Interesting ACCC decision - Telstra

[Bird]

Always knew ACCC was Shit.

'Australians will continue to be held hostage to Telstra'

Telstra shares have soared after its important win in the battle for regional customers after the competition watchdog ruled the telecommunications giant should not have to share its network infrastructure with its competitors.

The Australian Competition and Consumer Commission on Friday morning released its draft decision proposing to not "declare" wholesale domestic mobile roaming service.
A decision to "declare" mobile networks would have forced Telstra, Optus and Vodafone to let other carriers access their entire networks at regulated prices and the ACCC's ruling has sparked a furious response.

Telstra has argued that it is dedicated to building high-quality mobile networks around the country, but only if regulatory settings remain exactly as they are. If those settings changed it has indicated it could withdraw billions of dollars of investment from regional areas.

ACCC chairman Rod Sims said there was insufficient evidence that declaration would "improve the current state of competition overall".

"We are extremely conscious of the fact that in regional, rural and remote areas, mobile coverage and choice of service provider are vital issues. However, the effect declaration would have on competition in regional, rural and remote areas is uncertain. While declaration may deliver choice for more consumers, declaration has the potential to make some consumers worse off," he said.


http://www.smh.com.au/business/telstra-has-big-win-in-battle-for-bush-mobiles-20170504-gvywu2.html

[glenm64]

Im no Telstra fan, but if they have paid to build the infrastructure  why would they let their competitors use them to undermine their business?
Would you pay to build a business then let your competitor come along and use your infrastructure.
Same thing happened to Twiggy Forrestor who wanted access to Rio and BHP railways. They told him to stuff off. Think that went to court too and it got chucked out.


Cheers Glen

[xcvator]

Im no Telstra fan, but if they have paid to build the infrastructure  why would they let their competitors use them to undermine their business?
Would you pay to build a business then let your competitor come along and use your infrastructure.
Same thing happened to Twiggy Forrestor who wanted access to Rio and BHP railways. They told him to stuff off. Think that went to court too and it got chucked out.


Cheers Glen

x2

[GeoffA]

....
Same thing happened to Twiggy Forrestor who wanted access to Rio and BHP railways. They told him to stuff off. Think that went to court too and it got chucked out.

http://www.smh.com.au/business/bhp-rio-lose-rail-fight-with-fortescue-20081027-59lw.html

[McGirr]

"ACCC chairman Rod Sims said there was insufficient evidence that declaration would "improve the current state of competition overall" while using his new Telstra Iphone 8 courtesy of Telstra.

Mark

[Bird]

I thought it also had to do with what's best for the Consumer (I'm sure one of the C's in ACCC is that)... So in reality Telstra keep their monopoly as their Shit is the only real option once you leave the city. Not as Mark says free internet, TV and phone for life for certain decision makers.

[Paddler Ed]

Just shop smarter...

Boost Mobile uses the full Telstra network, and is only $30 every 4 weeks (a total of $390 per annum) for unlimited Australian Calls and Texts, and 7GB of data (3GB to use Monday to Fridays, and an extra 1GB each weekend)

You can port your number to them, so you don't lose your number and all is then good...

I buy my phone outright ($150 for the last one I think it was) so over the period of a standard contract (2 years) I'm ahead.

I used to be on contract, and I've now decided that I'd be reluctant to go that way again.

[jr]

Dont think the others use the whole telstra network, just a large part of it

The difference here is that I believe a fair bit of tax payer money went into building Telstra regional mobile networks - I could be wrong.

[prodigyrf]

No you're not wrong- http://www.afr.com/technology/optus-vodafone-rally-against-telstra-subsidy-20140515-iucd4
However I'd be cautious about that Optus statement-
"Optus estimated Telstra had received $462 million in direct ­government funding since 1997."
because they may likely be quoting total subsidies which could include fixed line copper rollout to marginal areas as well as compensation for their mandated Consumer Service Guarantee. In any case Optus and Voda could have easily stuck their hand up for these tenders if they thought it was in their interests to do so at the time. In that respect they always have the opportunity to share costs with a rural rollout to command a premium price like Telstra does.

[tryagain]

Dont think the others use the whole telstra network, just a large part of it

Boost is the exception, they get full coverage but not fastest 4gx data which is mainly just in the built highly built up area's, you still get 4g in those areas which is more than fast enough for what most use their phones for.

[Bigfish]

I worked as a remote area tech for 20 years in remote areas. Never saw an Optus or Vodaphone tech anywhere, apart from in some large city centres!  Both these companies used Telstra techs to do their work.  You can Shitcan Telstra as much as you want ( I have at times1) but for remote and regional areas they really are way ahead of anyone else for serviceing the bush....yes, they have their faults but name 1 large business that doesn,t.  Stuffed if I,d want someone telling me to carry an extra spare tyre on my car for them to use!

[GeoffA]

........Stuffed if I,d want someone telling me to carry an extra spare tyre on my car for them to use!

 

Funny, but I agree....and that's exactly the sort of attitude some travellers seem to have......

[D4D]

Interesting topic, where do you want your profits to go, local or overseas???

[scblack]

Interesting topic, where do you want your profits to go, local or overseas???

Good point!

Seeing Telstra is the local company.

[tryagain]

I worked as a remote area tech for 20 years in remote areas. Never saw an Optus or Vodaphone tech anywhere, apart from in some large city centres!  Both these companies used Telstra techs to do their work.  You can Shitcan Telstra as much as you want ( I have at times1) but for remote and regional areas they really are way ahead of anyone else for serviceing the bush....yes, they have their faults but name 1 large business that doesn,t.  Stuffed if I,d want someone telling me to carry an extra spare tyre on my car for them to use!

Whilst I generally agree with you, as others have mentioned, the fact that some of it is government funded is what muddies the water a little bit.
Your example above would be more accurate if it was someone expecting you to carry their spare, when the group had subsidised you to be able to go on the trip.

[trinityalyce]

Despite Telstra's faults (that said, none of the telco's are perfect, are they?), I kind of agree with this decision.

If you've got less money going Telstra's way because you open up the network to the competition, what incentive will Telstra have to continue to provide tech service (as someone has mentioned) to the rural/remote areas, and continue to expand their network in these areas?

Yes, it does get a little more complicated when you bring taxpayer funds into it, but a business will always think like a business.

For now, if you want to enjoy the benefits of Telstra's services, you have to go with them (or one of the telcos who are already "resellers" on their network). Unfortunately I think it does kind of make sense - support the service that serves you best, and hopefully they continue to meet your needs.

[loanrangie]

Im no Telstra fan, but if they have paid to build the infrastructure  why would they let their competitors use them to undermine their business?
Would you pay to build a business then let your competitor come along and use your infrastructure.
Same thing happened to Twiggy Forrestor who wanted access to Rio and BHP railways. They told him to stuff off. Think that went to court too and it got chucked out.


Cheers Glen

I agree but on the other hand do we need 10 x the mobile infrastructure and not get any coverage benefit ?

[prodigyrf]

Whilst I generally agree with you, as others have mentioned, the fact that some of it is government funded is what muddies the water a little bit.

That's true to some extent but the Govt subsidy for Black Spots was only partial for particular towers to get the capital amortisation over the line and rural users win in two ways with that. Firstly the immediate use of the tower but then they don't pay anywhere near the true cost of running that particular tower. That's because city slickers wanting better coverage travelling outside the cities are prepared to pay a premium for that too and there are many of them. Now there's no way Gummint could achieve that for their paltry investment and you only want one tower there not 2 or 3 so it's win/win all round. 

[tryagain]

That's true to some extent but the Govt subsidy for Black Spots was only partial for particular towers to get the capital amortisation over the line and rural users win in two ways with that. Firstly the immediate use of the tower but then they don't pay anywhere near the true cost of running that particular tower. That's because city slickers wanting better coverage travelling outside the cities are prepared to pay a premium for that too and there are many of them. Now there's no way Gummint could achieve that for their paltry investment and you only want one tower there not 2 or 3 so it's win/win all round.

And that's why I said a little bit, and why the ACCC has decided the way it has, but if it's the 500mil reported then I wouldn't call it paltry or even close to it.

[prodigyrf]

And that's why I said a little bit, and why the ACCC has decided the way it has, but if it's the 500mil reported then I wouldn't call it paltry or even close to it.

It's fairly paltry when you consider Conroy's initial NBN thought bubble was going to be $1500 per premise for full fibre which the 14 finalist tenderers politely guffawed at you might recall and now taxpayers are into Plan B to try and squeeze the expectations genie back into some sense of an economic bottle-
https://www.itnews.com.au/news/nbn-co-puts-initial-fttc-cost-at-2800-per-premises-453855
True, Netflix did come along to tip a bucket on all the best laid plans of mice and men 

[D4D]

Which is why the Govt should have stayed out of building the NBN and let the market build it.

Here's an idea, let's build another Telecom Australia, oh didn't we just sell that...

[InnerCityBoy]

I thought it also had to do with what's best for the Consumer (I'm sure one of the C's in ACCC is that)... So in reality Telstra keep their monopoly as their Shit is the only real option once you leave the city.

No, it means the opposite. If the decision had gone the other way, you would have all three mobile telcos reselling the one 'monopoly' Telstra network that you think is 'sh*t'. No one would build competing services to try and give better speed and coverage.

[OldPaj]

No, it means the opposite. If the decision had gone the other way, you would have all three mobile telcos reselling the one 'monopoly' Telstra network that you think is 'sh*t'. No one would build competing services to try and give better speed and coverage.

Exactly, this is why the other Telcos want access - more money and bigger dividends for their shareholders at Telstra's expense. We would then be in the situation where no Telco would be willing to expend funds to expand their networks when they would have to give the opposition access at a price set by external organisations (ACCC).

[feisty]

Was chatting a to a telstra mate who is one of their execs the day before the announcement. His spin was where will be be telstra's motivation come from to expand and remain the market leader if this goes through?  As much as telstra annoys the bejusus out of me he does have a very vaild point.

Sent from my SM-G955F using Tapatalk

[gronk]

Just shop smarter...

Boost Mobile uses the full Telstra network, and is only $30 every 4 weeks (a total of $390 per annum) for unlimited Australian Calls and Texts, and 7GB of data (3GB to use Monday to Fridays, and an extra 1GB each weekend)

I'm also with Boost.....but it's $40/mth for me.   How do you get it for $30 ??