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2009-10-05

Politics and economics don't always mix well

Comments on Stephen Bartholomeusz “NBN profits could be a fiction”, 2/10/2009, http://www.businessspectator.com.au//bs.nsf/Article/nbn-stephen-conroy-telstra-optus-nbnco-sol-trujill-pd20091002-WF58M?OpenDocument

This just shows how unreasonable for a government to ask a private firm to subsidise customers in its operations.

It is the government's responsibility to provide subsidise and account for any such decisions and be transparent about them.

Both government and regulators got it wrong to force Telstra to do unreasonable businesses.

Now let's see how its NBN fairs in this regard and exposes how government's approach is irrational economics for businesses.

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