The personal blog of Dan Warne, Online Editor, APC Magazine

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Why Telstra must be regulated

August 1st, 2007 · Comments

Stuart Corner at ITwire has written a great opinion piece that succinctly explains why Telstra's whiney politicking is so unconvincing.

Stuart is responding to Sol Trujillo's recent propaganda-laden speech to the AIIA luncheon, where the theme was an "inconvenient truth" for the current conservative government. "You cannot regulate your way to the future — you must let the market work," said Trujillo.

Rational words on face value, but Corner points out that Telstra has a highly selective view of what is actually a "free market".

Corner responds calmly. "Another inconvenient truth is that the market cannot work without regulation when one dominant player controls key bottleneck infrastructure on which that market depends, or is simply so dominant that significant competition cannot emerge without regulatory protection."

Great reading.

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