Telstra has revealed the addition of almost one million new mobile services in the six months to December 2011, but Sensis revenues plummeted 24 percent in 12 months.
The issue is that both companies chose to establish their Australian online presence in collaboration with TV networks. Microsoft led the way by forging a deal with the Nine Network to operate NineMSN, while Yahoo! teamed with the Seven Network to set up Yahoo!7.
Competition between free to air stations has always been strong, and Nine is still smarting from being knocked from its long-held number one position by Seven, which has enjoyed a good run in the last few years on the back of shows such as Desperate Housewives, Lost and 24.
It seems unlikely that the two networks would be overjoyed at the idea of being linked to the same online partner, even if - as seems likely - the existing branding is maintained.
I don't know whether the Yahoo!7 contract provides a trigger allowing the partnership to be dissolved in the event of a change of ownership, but even if it did, where could the Seven Network turn?
David Bass
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