TOCPCs – The Elite Geeks Blog

Impossible? You Lie!

TOCPCs – The Elite Geeks Blog header image 2

NWAT: Below cost services 4

August 29th, 2007 · No Comments

Leanne replied with this .. ridiculous comment:

Jason, You are just confirming my whole point…THANKS. iiNet don’t want to invest incase they don’t make money or only a small profit or go broke, or as you say “it is too risky”. So what you mean is Telstra should let all the other Telco’s use or leech off their equipment (lines etc) but keep their prices high on the services they provide to their own customers so that the other Telco’s can make a profit by undercutting them with their own products, without having to actually invest more money. LOL. Thanks for confirming what I have been saying.

My response:
Leanne,

If you actually read my comment you’d see iiNet could invest, sure, but it would mean Telstra will drop their prices to below cost and iiNet go broke in the process.

It’s a risk no business wants to take.

I’m not saying Telstra should be responsible for funding this, I’m saying Telstra had taxpayer support from Day 1. iiNet don’t have this.

Telstra got that taxpayer built network for a puny amount, and rather than thank the taxpayer for the support (and the subsidies they got via HiBis and Broadband Connect), they hold the entire country to ransom with one single agenda..
Furthering their own future greed.

It’s not consumers in mind here. Please recognise that. They don’t care if you can’t afford to eat because you want a phone connected, they want your money. Telstra will do whatever it can to get your money.

They are NOT looking after the consumer.

iiNet on the other hand: Could be charging double what they charge and still get customers.

They don’t, because they have consumers in mind.

Can’t say the same for Telstra here sorry.

iiNet could build backhaul right across the nation, but what’s the point if in doing that, Telstra will drop its prices to below iiNet’s and cause iiNet to not be able to make the money back off its investment?

Would you spend money on network infrastructure knowing Telstra will simply undercut you to maintain marketshare?

Tags: Random

0 responses so far ↓

  • There are no comments yet...Kick things off by filling out the form below.

Leave a Comment