>From: "Paul Brislen" <paul@ilovebiscuits.com>
> Basically Webb said "I'm not suggesting we break up Telecom into
>wholesale and retail but look what they've done in the UK" which
>had various people in the crowd raising eyebrows and looking stunned.
[snip]
Telecom is a commercial company that makes huge profits from a monopoly - no-one can realistically argue that Telecom is not a monopoly. As long as Telecom is a monopoly they will continue to run their bisuness to the benefit of their shareholders and not their customers.
The only effective way to make Telecom deliver change is to threaten them with nationalisation (like railtrack in the UK - but this had no discernable impact) or the threat of forced government break up ( like Bell in the US). The market in NZ is too small for that though.
The government need to force change in this area - but they are not prepared to battle with a large publicly listed company. It may send the wrong message to the investing public.
Basically Telecom will not change - change means reduced profits.
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Received on Tue Jun 28 12:13:26 2005