Australian consumers – including businesses — are getting all the disadvantages of a telecommunications monopoly and none of the advantages.
Developments over the past fortnight show how successive governments have made an utter hash of telecommunication policy – through ideology, the Dublin syndrome, political opportunism and a failure to have a clear industry policy with national goals.
The main advantage of a monopoly is that it prevents wasteful duplication. You only have to have one margarine factory; one road network; one defence force or one telecommunications network. The other advantage is that the community gets a service that it otherwise might not get: defence, roads, rural post services and so on.
But monopolies get complacent and bureaucratic and can abuse their position by over-charging. Often those disadvantages outweigh the advantage of no duplication.
Continue reading “Forum for Saturday 3 February 2007 telecommunications”