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2009-09-14

Both government and its regulator ACCC should be fair and know what is fair

Comments on Stephen Bartholomeusz “Levelling Telstra's playing field”, 14/09/2009, http://www.businessspectator.com.au/bs.nsf/Article/Levelling-Telstras-playing-field-pd20090914-VV5KU?OpenDocument&src=sph

Both the government and the ACCC should not act as big brothers and ignore the economic reality.

They should not artificially change the underlying economics of its NBN versus Telstra's copper net through government regulations and destroy the value of the copper net.

The ACCC had always acted in an anti-economics manner, by artificially lower the price Telstra could charge. A consequence of that has been the lack of investment by the private sector on new a net, so the government has to step in and intervene.

The ACCC should learn how to regulate a monopoly so it does not abuse its market power, but the market will allocate the most appropriate resources to the sector as well.

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