Telstra demonstrates its greed, plans to double all broadband prices.

Telstra has publicly confessed to its dirty tricks that it tried to play against the Howard Government, and in a pure demonstration of its clear greed to rid the industry of competition and charge its own excessive prices, which would essentially push telecommunications prices up, beyond their wildest possible levels.

A recent news article (that has appeared in many areas of the web and beyond), has that fat loudmouth Phil Burgess stating:
“We’re not going to do consortiums and equity with government and things like that”.

They don’t want to provide services with government funds, the way the government wants to.

Specifically, Phil also stated:
“We’re not going to do it if the government’s going to be an equity holder and a decision maker in how things get managed”

Interesting. They don’t want to be involved in a project that secures the companies future as a telecommunications supplier for the next 50 years or more, if the government has control over decisions, but they will happily take the governments money and spend it..

Why, I ask the fellow consumers, do they not want to be involved where the government might have a level of control over the tax payer money they are putting into the project? Why have they been on the public record, before, stating they planned to charge $59 ex GST for a basic 512 kbps connection, wholesale (does not include data, and everything else you need to make an internet connection)

Current 512kbps services supplied to customers, reach all customers well and truly, without hassle, and are retailed (that is, available to buy to customers) at a rate of just $35 a month, with everything to connect you to the internet included.

So, why do they plan to raise double that price on the wholesale level (and end up with retail prices at the $85 mark)?

Telstra’s plan here is definitely to raise its margins on its products to near 50 percent margins, which is bad for the consumer, bad for the economy (because consumers will be going poor paying for what amounts to a bit of shit for a broadband connection, provided by the masters of junk, Telstra).

I don’t really need to demonstrate the effects Telstra’s FTTN plan will have on competition, just look around, you see where there is competition available, the prices are cheap. Where Telstra is the only possible supplier, the prices are extortionate.

And before the argument is raised why don’t competitors invest in the areas where Telstra has priced the network expensively, well, that’s been done, and the results have been that Telstra simply drops its own prices to below cost levels to force the new out of business.

Or, where the competitor uses Telstra’s network, the prices are so expensive, that they might as well as just buy retail services from Telstra anyway (the backhaul pushes prices through the roof).

It seems clear that if you remove Telstra, you remove the problems.

So, act 1 for the new government in fixing telecommunications in Australia is clear. Remove the problem, remove Telstra. All the problems of regulation will magically disappear, by simply getting rid of the cause of problems!

Telstra is the problem. In nearly everything that is done, the problems all come back to none other than Telstra. And its not because they own the major network, not at all, because Optus own a network too, and there’s little to no problems with them.

All the problems stem back to Telstra, all the problems with competition, problems with regulation, problems with government, all, belong to Telstra.

Just imagine how better off the world will be without Telstra?! Must we wake up from that dream?! Imagine the services being provided as being the fastest they can be, and the best quality they could be. Imagine having that service provided for prices which are fair and reasonable. Imagine having no more racism seen from Telstra targetted at Optus due to its Singapore origin. It’s drool worthy.

We simply need to trust and ensure that Conroy does the right thing by consumers here, and doesn’t give the money to Telstra on the wrong terms. They must indeed ensure the prices will be at the current metro comparable levels, or lower. And I don’t mean Telstra metro, I mean the competition metro prices.

They must consider the G9 proposal. They must consider all other proposals which focus on a network of quality, open access, and low prices for the consumer.

They must fix the OECD reports that show we have expensive services compared to many of the OECD nations.

They simply cannot give in and let Telstra get the upper hand here for the next 50 years or more. Doing so is basically screwing us to Telstra prices.

The alternatives are definitely what need looking into and supporting. Let Telstra be the big baby they are being, fund up a competitive network, and then you can ensure the survival of it, and when that’s done. The issues sort themselves out through natural competition. Something Telstra are very scared of, which is why they are pushing for FTTN. Though they seem hell bent on getting those much higher prices locked in as well.


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4 Responses to Telstra demonstrates its greed, plans to double all broadband prices.

  1. Sydney Lawrence says:

    It is my hope that Senator Conroy reads your article, which is full of lies and rubbish, and he realizes what looney tune, misguided self serving devious people the Telstra haters are. Not happy with the one thousand million dollars bludged from the Australian taxpayer, you now want Telstra to be destroyed to the advantage of your own self interest. Really Jason, you’re dreaming.

  2. The Elite Geek says:

    Sydney, amazing you can’t handle the truth. Plenty of articles where Phil has stated:

    “Telstra plans to do a premium network, and charge premium prices”.

    That’s from the horses mouth.

    That’s nothing but the truth, and that truth is what will make consumers suffer should Telstra get its way.

    Telstra are facing a fight it will lose.

    You only need to look at US West to see the future.

  3. Sydney Lawrence says:

    Jason, you are correct in your quote of Dr Phil. His theory is exactly that of Rolls Royce, and that is people will pay a premium for superior service, which is perfectly true. As an instance, a friend of mine purchased a mobile phone from Vodaphone for use on a trip Brisbane/Cairns. Half way through the journey she decided to swap the Vodaphone for a Telstra NextG which gave her far superior coverage. You can prove this theory yourself. Next time you travel don’t take the luxury Boeing (ten mile a minute) take the cheaper train (ten mile an hour) and you will understand Dr Phil’s thinking.

  4. The Elite Geek says:


    The problem with that theory is Telstra is dealing with national infrastructure that all kinds of people will be needing to purchase.

    They will be a monopoly supplier to all users, and competition as well.

    Charging a premium, with no alternatives, and charging competitors a premium, for what amounts to a lower quality and lower value service then is available from competitors now, is just plain wrong.

    We can get 8Mbit plans for the same price Phil plans to wholesale 512kbit plans. There’s something severely wrong there!

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