Cornered! is a blog devoted, most of the time anyway, to telecommunications: local and global issues, technology, people and trends from the perspective of someone who's been reporting, analysing and commenting on the industry since the dark ages (BC - before competition). Sometimes serious, sometimes flippant, sometimes frivolous. Controversial, analytical, informative, amusing, but never boring; a vehicle for examinations of important issues and observations on my encounters and experiences in an industry where polarised views and hyperbole are the norm.
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Cornered! Telstra shoots messenger: accuses economists of producing 'bogus report'
Cornered! Telstra shoots messenger: accuses economists of producing 'bogus report' | Telstra shoots messenger: accuses economists of producing 'bogus report' |
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| by Stuart Corner | |
| Friday, 06 June 2008 | |
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Page 1 of 2 Furthermore, it concluded that: - Australian consumers and the economy would be $897 million worse off under a Telstra owned and operated National Broadband Network; - Telstra's targeted return on its capital investment was relatively high and "may be consistent with the abuse of market or monopoly power"; - The build-cost scenarios for Telstra's broadband network would increase inflation, reduce national growth, lower wages and reduce national consumption; - The impact of Telstra's network would "lead to a general contraction of the Australian economy." Strong stuff! And Telstra's response was immediate and ferocious. It did not attempt to counter the report's finding in any detail, simply dismissing the report as 'bogus' and accusing it competitors of having "sunk to new lows in their bid to stop Australia getting a high-speed broadband network." Group managing director for Telstra Wholesale, Kate McKenzie said: "This is a completely bogus report that has been bought and paid for by a bunch of competitors who want one thing only - to stop the building of Australia's national broadband network and keep their current cosy arrangements. "The report has no basis in fact. It is a dishonest distortion that is designed to do nothing but delay the process." When you want to discredit a report you an always find a few words to quote selectively in support of your cause. Thus we have McKenzie claiming "The report itself says: 'estimates presented in this report may not be precise' and that the 'estimation error in the WACC calculations presented in this report may be significant'." CONTINUED |
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