So, doesn't this mean that the privatization of Telstra by prior governments was a complete failure?
That is to say that the now private, previously 100% government-owned telecommunications company (run by an American because no Australian was deemed competent) which failed to even lodge a bid according to the rules has been completely bypassed ... in favour of the government itself deciding to fund the buildout of a national network in conjunction with the private sector. And the government, whilst eventually planning to divest itself after 5 years, will control the network with a 51% stake until then.
So what's the next move for Telstra, Packer and Murdoch who own the monopoly cable programming franchise? Do they now offer to sell a TV package to the government-controlled fiber consortium? Or, somehow, is there room for an actual competitor in pay television in Australia? Probably not as I imagine that Foxtel has stitched up the programming deals with Hollywood well and good. Maybe Lachlan will come in and set up a company in competition with his Dad, which would be Oedipal to say the least.
Well, then the smart thing to do would be for someone to negotiate IP video rights with the studios though I suspect that the Foxtel deal has geographic exclusivities that transcend the bearer. Their lawyers are, after all, pretty smart. Though hopefully not, and some wise person can actually bury cable TV as another useless monopoly in Australia that has held back from consumers there what people elsewhere freely enjoy. Like, say, HBO.
I think this is a policy coup for Rudd - not to mention the ultimate fuck you to Sol though, in his jet, he gets the last laugh. And God knows, Australia needs the network. But here's a sobering thought - Australia will get, in say 2017, what the Japanese started to build in 2001. Japan is now at Gigabit fibre, and who knows where it will be by 2017 when Australia is coming online with ethernet speeds.
Sad, really, the wasted opportunity. The
whole sorry history is here. I wish someone would/could do the math - how many taxpayer dollars were invested into the PMG (Post Master General) which became Telecom which then became Telstra. And how many private dollars poured into Telstra stock which then went underwater? And then how much of the proceeds of the sale of Telstra flowed back to the government only to be reinvested by the government in building a fiber network. So by my math, most of us have paid at least 3 times for third world services (snap!), and the people who got rich were some private investors, a ton of lawyers and brokers, Sol and his cowboys. Everyone else seemed to get fist-fucked and we're the laggards of the region.
Way to go, folks. C'mon Aussie c'mon, c'mon, c'mon Aussie come on.
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