[LINK] Telstra free Internet

[Stewart Fist]

Ramin says:
>If goConnect, FreeOnline, FreeNetOnline, Hop-On and half a dozen other
>companies are gonna go "free ISP" and have market capitalisation in 
>excess (combined) of $1 billion, then why shouldnt Telstra also join
>them?

There are four very good reasons why they should not:

1. Telstra has monopoly control over sections of the Internet services --
namely the local loop and suburban switching network, and is in a position to
benefit from this ownership despite offering free Internet.  The whole idea of
Trade Practices law and the ACCC is to stop people from exploiting monopoly or
near-monopoly advantages.

2. Secondly, Telstra can exploit its gigantic size, enormous finances,
cross-subsidisation potential and vertical integration to wipe out small
legitimate enterprises.  And that's not on either, in my book.

3. Telstra, when I last looked, was still majority owned by the public, and it
was charged with maintaining the public good and working to promote the public
benefit, not just profits.  This requires an ethical standard of behaviour
above that of for-profit companies -- not less.  The question needs to be
asked does the nation benefit in the long-term by this sort of behaviour, or not.

4. FreeOnline, FreeNetOnline, Hop-On and the others are minnows in a very
large ocean. Most observers predict that they can't sustain free services in
Australia, but in their attempts, the won't to much damage to the legitimate
fee-charging ISPs.  However the same can't be said for a free-Telstra service;
the damage to others would be enormous, and the Australian Internet would
never recover.  A few years down the track we would end up with a privatised
Telstra, with near 100% of Internet services, charging a hefty fee for use.

-- 
Stewart Fist - writer and columnist
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