From
http://www.theage.com.au/news/busine...695823575.html

DURING the past week, Communications Minister Helen Coonan played out in
public the stop-start, flip-flop, yes-no approach to policymaking that has
created Australia's broadband drought and the policy mess that is blocking
investment in Australia's broadband future.

These events also allowed all to understand more clearly why Telstra has
started a campaign to inform people about the choices being denied to them
because of government policies and regulations. As usual, Senator Coonan
focused on process, regulation and red tape - not investment in broadband,
e-medicine, distance learning or other initiatives that would improve the
quality of life.

The latest bad idea: to split Telstra in two. Separation is a bad idea
because it would damage shareholder value, cost taxpayers, increase prices
for consumers, and ensure another six to eight-year delay in broadbanding
Australia.

Senator Coonan's decision to put separation on the agenda was a major
flip-flop in the policy of the Howard Government. Consider the following:

?On March 9, 2005, Senator Coonan said in the Senate: "The . Government has
always maintained . that structural separation of Telstra cannot under any
circumstance be supported."

?In October last year, as part of the T3 sale, she signed a prospectus that
included a promise of regulatory forbearance. That is, the Government of
Australia certified that there would be no changes in regulations adverse to
the interests of Telstra shareholders until after 2009.

?Flip last Tuesday to pro-separation, saying to reporters: "We are looking
at whether or not some structural separation may eventuate in any event as a
result of the expert taskforce."

?Flop on Friday, at a meeting of the Australian Computer Society with the
statement that: "There will not be unilateral structural separation of
Telstra."

?Flip again on Sunday, stating: ". we have no current intention to
unilaterally require structural separation of Telstra." So now we are back
to no "current" intention. What about tomorrow? Next month? Next year?

With this dramatic example of wavering and indecisiveness at the highest
level, all can now see why there is so little investment in broadband in
Australia compared with the rest of the developed world. Responsible boards
and executives do not invest billions of dollars in a new technology when a
government that regulates 50 per cent of your revenue is so confused.