PRIVATISATION - TELSTRA What are the advantages of privatising Telstra and how does this impact it's ethical conduct while striving to satisfy community expectations? I believe that putting important public assets into select private hands is not in Australia's long-term interests, and oppose the partial/full sale of Telstra for the reasons that the Government has given. The argument the Government has given for the privatisation and corporatisation of Telstra has been a budget conscious one where the proceeds of Telstra will provide a "one-off" opportunity to: 1) abolish Telstra's pastoral call rate and provide untimed local calls in extended zones in remote Australia; 2) increase funding for Networking the nation; and 3) pay off foreign debt left over by the previous government However, this is not true as the Minister, Senator Alston already has the power to direct Telstra to provide services and upgrade infrastructure (points 1 and 2). If the USO (Universal Service Obligations Act) or performance standards under the CSG need changing, then the Minister should invoke his power to direct, and these changes should be made distinct from any attempts to sell Telstra. Statistics also show that the sale of the first third netted a total of $0.37 billion loss to the Commonwealth. By the year 2000, it is estimated that Telstra earnings will exceed $2 billion annually. The Howard Government estimats an interest saving of about $2.4 billion per year. This doesn't take into account the income that will be lost to the government every year in revenue earnings from Telstra. By 2007, the sale of Telstra is expected to create a budget black hole of $4 billion. The government cites that the "Mums and Dads" of Australia will benefit by purchasing shares in the float, which is true. But eventually the real beneficiaries will be the multinational companies who will have the controlling majority, not the Australian public. This can have detrimental effects on society, especially to the rural regions of Australia. The Democrats and the Labor Party also disapprove of the privatisation of Telstra for the above reasons. Privatisation is when a Government Business Entity (Statutory Body) is sold to the general public and becomes a public company. There is a belief that Government run businesses are inefficient because their motive isn't necessarily money, although there is no consistent evidence that privatisation increases efficiency. However in the case of Telstra, there have been clear signs of deterioration in services since it's partial privatisation.
“Since joining TELUS in 2000, Darren has led the company to deliver the highest total shareholder returns amongst global telecoms.” Stress distinguishing feature, form dimensions, attention to guarantee the shareholders’ profit are the paving stones for sustainable development. Also, Darren is a strong proponent of the Privacy By Design approach and the need to increase educarion about privacy and security issues within the context of our digital environment. He has been comparatively successful in maintaining customers’ privacy while they are using the TELUS sevice. Both indicate that fulfill the demander is the trump to let him be the longest-serving CEO amongst global incumbent telecom
One.Tel was an Australia based GSM service provider meaning it functioned mainly in the telecom sector and eventually grew to become Australia’s fourth largest telecom service provider before being shrouded in controversy which lead to its eventual downfall. Jodee Rich and other executive directors of the company faced accusations of not discharging their duties as directors effectively with respect to the duty of care they had towards the best interests of the company. This duty is mandated by Section 180 of the Corporations Act, 2001 as well as principles of common law.
"We have an extremely antiquated Broadcasting Act," he said. "Things get old. People get old. Legislation gets old. We 're looking for a refresh of the Broadcasting Act. It 's a reasonable request." Entwistle suggested that the Canadian Radio-television and Telecommunications Commission(CRTC) should displace the Canadian Television Fund with a fund created and manage by company such as TELUS. (POST, 2006)Although his suggestions drew the CRTC’s attention, the Conservative government had already set the plan to the CRTC. However, Entwistle is brave and astute to strive for the maximum benefits, not only for TELUS, but also the Canada government and the whole
WHAT WAS THE HIH BOARD DOING WHILE THIS SAGA WAS GOING ON? WHAT SHOULD THEY HAVE DONE?
Of particular importance is the deregulation of the telecommunications industry as mentioned in the act (“Implementation of the Telecommunications Act,” NTLA). This reflects a new thinking that service providers should not be limited by artificial and now antique regulatory categories but should be permitted to compete with each other in a robust marketplace that contains many diverse participants. Moreover the Act is evidence of governmental commitment to make sure that all citizens have access to advanced communication services at affordable prices through its “universal service” provisions even as competitive markets for the telecommunications industry expand. Prior to passage of this new Act, U.S. federal and state laws and a judicially established consent decree allowed some competition for certain services, most notably among long distance carriers. Universal service for basic telephony was a national objective, but one developed and shaped through federal and state regulations and case law (“Telecommunications Act of 1996,” Technology Law). The goal of universal service was referred to only in general terms in the Communications Act of 1934, the nation's basic telecommunications statute. The Telecommunications Act of 1996 among other things: (i) opens up competition by local telephone companies, long distance providers, and cable companies ...
Perhaps no other company has benefited more from this deregulation than the company which is the focus of this essay – Clear Channel Communications, Inc (CC). The Telecommunications Act and the actions of the FCC paved the way for the rise of this radio industry behemoth. In 1995, the company owned 43 radio stations nationwide. By 2002, it owned 1,239, making it the largest radio company in th...
The proposed merger between Comcast and Time Warner Cable would make it the largest provider of cable in America and give it unprecedented market power and allow it to continue to pursue profits and the cost of consumers. While it would not be a monopoly, it would be giving the company dangerous power. Already Comcast has control of one of the largest media providers in America, NBC. It has significant control of internet as well, and has made Netflix pay Comcast to have faster speeds. The question now isn’t if the merger will be bad for business, it is if the United States government will make the right choice for
In 1979 the United States Postal Service had a cash flow of $22.5 Billion and was additionally receiving $176 million from investing(#1, Intro). Even with this added revenue the Postal Service was still greatly under funded on its own (#1, Intro). During this time it was discussed to privatize the postal service and introduce competition because of the extreme losses that the service was experiencing. A positive argument for privatizing the Postal Service was with numerous competitors in the market there would be more efficiency and the public would receive lower prices.
Optus Communications Pty Ltd was incorporated in 1991 as the holding company of Australia’s first private communication carrier (Mclennan, 1998) and by mid – 1994 Optus employed more than 2600 employees (Katz, 1997). Sintel Optus Pty Limited (Optus) is a subsidiary of Singtel Inc providing services in the field of telecommunications in Australia. The firm provides mobile, national and long distance services, local and international telephony, business net...
This issue is clearly internal as Telstra’s servers collapsed, causing millions of pre-paid customers across Australia not able to make phone calls. This incident is not new to Telstra as it is the second time it has occurred in a month. The stakeholder that benefits from this is competitors. Customers now question the reliability of Telstra after this and may consider changing mobile provider. Shareholders are effected the most are the share price will probably plummet due to the incident that occurred depending on the severity. In this case the shareholders saw the decline in Telstra’s share price. This issue may have put stress on the employees as they try to bring the severs back online as quick as
When the word monopoly is spoken most immediately think of the board game made by Parker Brothers in which each player attempts to purchase all of the property and utilities that are available on the board and drive other players into bankruptcy. Clearly the association between the board game and the definition of the term are literal. The term monopoly is defined as "exclusive control of a commodity or service in a particular market, or a control that makes possible the manipulation of prices" (Dictionary.com, 2008). Monopolies were quite common in the early days when businesses had no guidelines whatsoever. When the U.S. Supreme Court stepped into break up the Standard Oil business in the late 1800’s and enacted the Sherman Antitrust Act of 1890 (Wikipedia 2001), it set forth precedent for many cases to be brought up against it for years to come.
Background One. Tel was launched by Jodee Rich and Brad Keeling in 1995 (Cook, 2001). At first, it looked to get the advantages from deregulation of the telecommunication industry by reselling other network’s capacity and making money through stock market speculation. Rich and Keeling tried to increase the company’s shares rather than profit the company (Cook, 2001). Initially, One.
...Airport Holdings is considered a good example of a privatized company operating in a regular market. Although there are about 41 airports in the UK handling passengers and cargo, the market is highly regionalized. In particularly, all the airports under the company including London Heathrow have almost a localized monopoly in the economically important south-east of England with only limited competition from other airports around the UK (Parker, 1998).
Indeed economic rationalism tends to privatization of public utilities, like electricity, gas, airports, railways, telecommunications. Many other government bodies have been corporatized or required to operate on a pay-for-service basis. Privatization is not only an end in itself but also serves an educational function by transforming public attitudes toward ownership and economic responsibility. The result will be an increase in net economic welfare: the economy will become more dynamic and scarce resources will be allocated more efficiently. In capitalist theoretic, the profit motive is said to ensure that resources are being allocated
... privatization to cut down on its spending and public sector. Although tax payers continuously complain of high taxes and demand for a reduction in the public sector, it doesn’t however mean the demand for public services is declining. Government should therefore adopt measures and make fundamental reforms in the public sector.