From: bill [redheelr@optusnet.com.au]
Sent: Friday, 16 August 2002 11:02 AM
To: ecita.sen@aph.gov.au
Subject: Inquiry into the Australian Telecommunications Network

I would like to submit the following points to the Committee re the Telstra
inquiry.

The cable that services my street is approximately 45 years old, it is lead
sheathed, with paper insulation. I live in a suburb that was developed not
long after WW2, I'm wondering who is going to be responsible for the
inevitable upgrading of the network cable in this suburb, should Telstra be
fully privatised. The cable is not in pipe, so any upgrade would require
costly trenching operations. Mine is not the only one, there are many post
war cities that were built, such as Elizabeth in South Australia, that still
have much of the original cable in use. The current practise of placing pair
gain systems in the network to improve capacity means diminished service, as
some of these are not able to accommodate such features as Calling Number
Display, or in some cases, provide dial tone, if too many other subscribers
are accessing that pair gain system at the time.

I'm curious as to who currently owns, and who is going to buy the remainder
of Telstra, should it become fully privatised. There are in excess of 30,000
staff who took out a Telstra interest free loan to purchase 2,000 Telstra
shares. With this purchase came a one for four loyalty bonus, so 2,500
shares. These shares are paid for from a percentage of the dividends, the
balance or payout figure at the dividend before last was $5,084.43. The same
applies for the T2 shares, which were sold to the public at $7.20. Telstra
staff were
given the opportunity to purchase 400 of these, again on an interest free
loan, paid off from a percentage of the dividends.
I don't think the general public is in any position to buy off the remainder
of Telstra. What does the government think would be a good price per share?
What would the people who bought shares at $7.20 in T2, which are selling
for two thirds less than cost, think if the government sold the remainder at
say $4.00 per share? I believe that other than a large multi national
company, in particular, media, nobody else in Australia is in a position to
buy any shares.
Network maintenance is already under enormous pressure, as is network
capacity in some areas, who is going to pay for these upgrades, when
shareholders demand increasing returns on their investment?

Yours sincerely,

Bill Russell
11 Rice Ave.,
Gawler South
SA   5118