Conroy needs to learn how to live with and regulate a natural monopoly

Comments on Michael Stutchbury "Telstra break-up may stifle innovation", 19/09/2009, http://www.theaustralian.news.com.au/story/0,25197,26093486-5017771,00.html

Michael Stutchbury's article touches the problems with Rudd/Conroy's poor approach to NBN and Telstra.

Australia is too small to break up a telco monopoly in some field of the industry. It is not just the competition but also the costs and innovation, investment etc that a government has to consider.

It is all too easy to break a natural monopoly. But that is not necessarily the best public and economic policy.

Government has to learn to balance competition and other economics. It has to learn how to live with and regulate a natural monopoly such as Telstra.

What Conroy announced continues the Rudd government's economic incompetency.

That is unfortunate for Australia and Australians. It will not only disguise the poor economics of the government's proposed $43 billion NBN, but also make the telco industry in Australia less competitive and more costly to consumers.