Finally some common sense prevails.......

working link

IN BRIEF: REGULATORY REFORMS
* Telstra asked to structurally separate or have strict regulation imposed upon it.
* Telstra banned from future wireless spectrum auctions should it not separate or sell off its HFC cable network or its interest in Foxtel
* ACCC given new powers to regulate wholesale access to Telstra's network and hand out competition notices without prior consultation.
* Minister Conroy given an exclusive power to change the requirements of the Universal Service Obligation (USO), with a capacity to fine Telstra up to $10 million for not meeting such conditions.
* ACCC given capacity to issue on-the-spot fines for breaches of 'consumer safeguards'.
* Carrier licenses no longer required for operators with revenue less than $25 million per annum.

All I would like to say at this point is f*** YEAH.

also, have they already shut down NWAT? cause if not, there is going to be a massive bitch happening there soon.

Edit: Its shut down.

Off I go to WP to see the fanboys crying.

last edited by mongie at 11:05:22 15/Sep/09

By 2018. What a joke. This government are a joke when it comes to making anything happen by any realistic deadlines. They'd be thoroughly useless in the real world or industry.

seems like a good idea. anything to encourage more competition.

By 2018. What a joke. This government are a joke when it comes to making anything happen by any realistic deadlines. They'd be thoroughly useless in the real world or industry.

I thought I saw the separation had to be happening by November?

This has potential to be awesome.

Nice! Splitting BT worked well.

Awesome news!

Minister Conroy given an exclusive power to change the requirements of the Universal Service Obligation (USO), with a capacity to fine Telstra up to $10 million for not meeting such conditions.

However I'm a little concerned with the way the above is worded. I just hope that this doesn't extend to the DDSO which is separate obligation related to the USO (digital data service obligation) and possibly a "backdoor" plan to get the net filter in.

Why is this awesome?

its pretty s*** realy

IN BRIEF: REGULATORY REFORMS

* Telstra asked to structurally separate or have strict regulation imposed upon it.

Im all for this, and yad probably be surprised that telstra itself is probably not at all opposed to it.
There is far less crap associated with Wholesaling services, and currently i believe its in Telstra interest to push forward in wholesale and dump the residential arm of Telstra all together, thus completely being immune to the BS accc regulatory crap associated with retail of services.

* Telstra banned from future wireless spectrum auctions should it not separate or sell off its HFC cable network or its interest in Foxtel

I don't see why HFC cable network or Foxtel has to even come into, this sounds like the government is backdooring success of there own FTTN Roll out by limiting competition, Good Game.

* ACCC given new powers to regulate wholesale access to Telstra's network and hand out competition notices without prior consultation.

Also epic fail.

* Minister Conroy given an exclusive power to change the requirements of the
Universal Service Obligation (USO), with a capacity to fine Telstra up to $10 million for not meeting such conditions.

GG.

* Carrier licenses no longer required for operators with revenue less than $25 million per annum.

Yah like we really need more pleb ISP poping up offering nothing more than more wholesaled services.

The separation part, all for, the ACCC and Conroy getting more power, is more worse than good.

and currently i believe its in Telstra interest to push forward in wholesale and dump the residential arm of Telstra all together

...what? I don't think you gave that enough thought.

okay, so what does this mean for us fellow shareholders?

edit: tl;dr up or down?

anything that weakens telstra's market power is bad (good) for shareholders (the public).

edit: looks like the market understandably didn't like this news, TLS dropped 4.31% from its previous close.


last edited by taggs at 18:08:07 15/Sep/09

What does this mean to people who never bothered to understand how Telstra is structured?

anything that weakens telstra's market power is bad (good) for shareholders (the public).

That's going to confuse the crap out of some people

Anything that weakens telstra's market power is bad for shareholders (yet good for the general public overall).
That is if I am to believe all the hype I've read an been told overall

^

yup that's what it means, my brain doesn't work in the most understandable of ways sometimes :D

anything that weakens telstra's market power is bad (good) for shareholders (the public).

I understood that sentence.

What does this mean to people who never bothered to understand how Telstra is structured?

At the moment, Telstra are vertically integrated. They sell to other retailers, and they sell to end users.

Structurally separating Telstra will split the company into a Wholesale company and a Retail company. Shareholders would most probably receive a share in each company for each that they owned in Telstra.

The Wholesale company will then only wholesale, and the retail company will only retail. This will ensure that there is no favour being shown between wholesale and retail.

(Sorry if that's confusing, but I can't think of how to write it any better)

The better option is buying the missing half the shares in wholesale and keeping it, then selling off their share in the retailer.

Wholesale company will probably never exist except on paper as I suspect the plan is to sell it into the NBN. I expect that they will be allowed to maintain the mobile network within the retail business as does VHA and Optus.

I doubt that Mass.

The Government only want the fibre. There is a lot of it, but what about the cable network, pots network and NextG/3G networks?

I assume Telstra are going to retaliate in a strong way. Probably by giving Conroy a big f*** YOU.

Nah they'll take the copper too......they need the NBN to be an attractive option for investors (ie it has customers), the copper give an immediate financial viability and also gives them time to migrate in the FTTP. Besides once the fibre backhauls are gone what's the copper good for? NBN will take the lot, its the ducts that they want, copper just happens to be in there.

Hohoho...

"At the moment in the marketplace, Internode is selling 100 megabytes for $100 (and) iiNet are talking about that sort of pricing point," Senator Conroy said, adding that Optus research put a likely wholesale price at about $60.

Just when I think Conroy has done something to redeem himself, he goes and makes a comment like this.

I had to re-read it several times before I realised he meant Internode are selling 100Mbit connections for $100/month. This is in Greenfield development sites.

http://mongie.com/ulimages/arx1253059352x.JPG
ABS Internet Snapshot - Recently released.

Interesting statistics there...

There are 8,420,000 active net connections in Australia.

443,000 of them are faster than 24Mbit.
1,800,000 are between 8Mbit and 24Mbit.

Largest group is between 1.5Mbit and 8Mbit (2,529,000 users).

There's nothing wrong with what you quoted mongie. It made sense to me the first time I read it. I think you just have a vendetta against the guy.

they're selling 100 megabytes?

can i have some??

how have share prices not tanked on this news

Telstra will be worth more as a split than a whole. And I think a lot more successful on the retail front. Can you imagine what they'll be able to do without regulator shackles on. They might even start selling good value internet deals, they certainly have the market share and captial backing to undercut all competitors.

how have share prices not tanked on this news

I thought they did

how have share prices not tanked on this news

they fell 4.31% on the previous day's close after the announcement

http://img198.imageshack.us/img198/727/tls1m.th.gif



last edited by taggs at 07:58:24 17/Sep/09

wtf, I looked at google finance and couldn't see a drop. Maybe Internet in Brazil is running as many days behind as it is SLOWER THAN A WET WEEK

brazil wtf
I didn't even realise you weren't in your office

SLOWER THAN A WET WEEKWICK

FIXED.

how have share prices not tanked on this news

That would assume they had ever risen.
They T2 shares growth is flatter than Keira Knightlys bra.

I didn't even realise Trog had an office. I had always assumed he had a secret lair in his mothers basement....

he had one
but it's my storage room now

Maybe Internet in Brazil is running as many days behind as it is SLOWER THAN A WET WEEK

There is a Brazil in the western suburbs ?