The fact Telstra might have to abandon underground cabling in favour of above-the-ground cabling to compete with Optus for pay TV and telephony shows that Australia should not be a slave to competition and market forces, but should use it where it is beneficial and use sme regulation where that is in the long-term interests of the nation.
A meeting of local government leaders in Melbourne this week called for a national summit on the issue of cabling. It rightly called for a single agency to take control of telecommunications infrastructure.
Competition in telecommunications has brought many benefits, particularly lower phone costs and a quicker and more reliable serice for connecting phones. Competition for services that go over the phone lines and to provide equipment in households has been productive. However, it is patently absurd to have more than one set of cables to deliver the services. It is needless duplication of valuable infrastructure. Having Optus and Telstra both rolling out their own fibre-optic and co-axial cable is a waste. Further, the competition has led to Optus using the cheapest and easiest method … slinging it along existing power poles … irrespective of aethetics and environmental factors or local plannig laws which federal telecommunications law apparently overrides. Now Telstra feels it must do the same.
Further the competition has led to dual cable roll-outs in high-density high-demand areas in the big cities while the bush and regional centres miss out.
We need one cable network owned by one entity (private or public or mixed) which does not also compete for telephony and television services. Then there couldbe vigorous and healthy competition among a range of providers using the network.