[LINK] Telstra's NBN bid rejected

[Jan Whitaker]

At 10:51 AM 15/12/2008, David Boxall wrote:
> > Telstra's NBN bid rejected

The Age has a mid-morning published article:
http://business.theage.com.au/business/markets/telstra-out-of-broadband-plan-20081215-6yi9.html

[I've juxtaposed some portions below for comment.]

Shares in Telstra plunged 27 cents, or 6.5%, to $3.86 shortly after 
the market opened.

later:
Mr Trujillo said Telstra reserved its right to take future action.

''It is too early to rule anything in or out, and we remain hopeful 
that sense will prevail outside the RFP process at a later date.

''But if not, let me be clear, we have plenty of options and will 
continue to act in the interest of shareholders, customers and employees.''

[gee, I wonder how shareholders feel about the continuing loss? The 
dividend percentage will only work for so long, given that the 
relative dividend increase is only because of capital losses]

this one was funny, too:

Telstra considers it fully complied with the proposal requirements, 
which it said did not require a SME plan to be lodged.  [NOTE: did not require]

It said the government had used a peripheral issue to exclude it.

"Telstra provided its SME plan to the government in early December 
and, in Telstra's view, in accordance with the RFP," Mr McGauchie 
said. [NOTE: in accordance with the RFP]

[Which is it, McGauchie? What is it about the words 'require' and 
'accordance with the RFP' does not compute for you?]

"The Commonwealth could hardly have dreamed up a more trivial reason 
to exclude Telstra from the NBN.

"This is a process that seemingly excludes bidders on such trivial 
and legally questionable technicalities but doesn't take any action 
on material issues such as financing and having the technical 
capability to build the network.

[As someone who has prepared govt required information for 
immigrating to the country, applied for grants, submitted to RFPs 
myself, this is just an ill-informed and hubristic attitude. The 
basic requirement of any process is: Answer the damn questions!]

"If future generations bear the costs of a substandard NBN, today's 
decision will be seen as a turning-point in the nation's history," it said.
[Big 'if', and a qualifier that may not bear out. It might also be 
the turning-point of breaking Telstra's monopoly and the only ones 
they can blame are themselves. It makes me wonder if the ALP are 
seeing this as a way to unwind the privitisation that went on during 
the Howard era. Note the reclamation of the 'bonus to the bush' from 
the original sale, too.]

"This is the largest, most complex NBN build anywhere in the world.
[Is there anything to back this up since it 'isn't' anything yet?]

"Australia now risks being the only country ever to build an NBN 
without the existing fixed network owner in the most difficult 
financial climate in decades."
[Again, the saving wiggle words are 'difficult financial climate in 
decades'. And your point is, McGauchie? So what?]

Telstra chief executive Sol Trujillo said later that the telco still 
had many options available to it in terms of rolling out high speed broadband.

He said the company was not out of the running for the project.
[Telstra can make any business decision it wants. I heard recently 
from someone who knows this stuff that Telstra has installed a LOT of 
technology that it hasn't turned on yet and at one time left it dark 
until the govt [Howard] came up with a subsidy. The equipment was 
ALREADY THERE. To me that's called fraud.]

''The RFP process leads only to the minister getting a 
recommendation,'' he said.

''It is open to the government to re-engage with Telstra if and when it wishes.

''The minister can talk to whoever he wants to talk to after the 
panel reports to the minister.

''He can decide to take to cabinet whatever he chooses.

''Cabinet will then make a decision, which based on what has been 
made public by other bidders, is likely to require legislation to be 
implemented.''

[why legislation? Is there already legislation that permitted the RFP 
for an NBN in the first place? What legislation would then be needed? 
Possibly something to require Telstra to carry to the home on the 
copper network?]

Jan




Melbourne, Victoria, Australia
jwhit at janwhitaker.com
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personal: http://www.janwhitaker.com/personal/
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sing or write, for only in such response do we find truth.
~Madeline L'Engle, writer

Writing Lesson #54:
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