Uncommon Wisdom

Dec 18 2008   2:30PM GMT

Australia nixes Telstra broadband bid



Posted by: Tom Nolle
Tags:
Broadband
Next Generation Networks
Regulations
Triple play services

In a decision whose short-sightedness was worthy of U.S. process, the Australian government disqualified its national carrier Telstra from bidding on an enormous and controversial program to provide more universal broadband access in Australia.

There have been political fights between Telstra and various government agencies since the carrier started its path toward de-nationalized status. Australia is a country with incredibly challenging economic demographics, and we believe its regulatory bias should have been more pro-investment all along. Given that there are really no credible alternatives to Telstra, the move seems almost suicidal.

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