Has senator Helen Coonan become unhinged? She urges Telstra to build a cable network on the basis that once built, the Australian Competition and Consumer Commission will be able to determine whether Telstra has the right to use it as it sees fit ("Telstra's rivals must fight to access new work", AFR, November 30).
That's like saying, "Go build your house and the authorities will determine whether you can use it as you wish or whether you should share it with others at a rent they will deem fair".
Nobody can invest on such terms. Coonan's approach is in contrast to that of her ministerial energy colleagues, who have decided that new gas pipelines will have a regulatory holiday on a basis that is clear before they have invested.
Bad experiences with new pipeline proposals had demonstrated the folly of allowing scope for regulators to take control of assets after they had been built. Her position on fibre cables is all the more foolish given the rapid change in technology in the area. Even the bandwidth available on a given cable will doubtless be constantly upgraded and once regulated will give rise to constant review and control.
Meanwhile, there is an avalanche of new delivery mechanisms -- asymmetrical digital subscriber line (ADSL2), wireless, use of electricity lines -- that mean any technology bet is risky. Telstra is required to produce 486 regulatory reports a year, mainly for the ACCC, and unless we allow it freedom to run itself, we will see a progressive decline in our telecom services.
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